PRESS DIGEST - British business - Oct 21
The Guardian
250 MILLION DOLLAR MULTIPLIER FOR WILLIAM HILL ONLINE
William Hill (WMH.L) has reinforced its struggling internet operations by combining forces with gaming software specialist Playtech (PTEC.L). The Aim-listed company will acquire a 29 per cent stake in William Hill Online, a new online gaming and sports betting operator. In return, Playtech will provide 145 million pounds worth of recently acquired affiliated businesses with a strong supply of customers, as well as "marketing and customer retention expertise". William Hill will own the rest of William Hill Online and have full operational control, keeping open an option to buy out Playtech's share in four or six years' time.
CADBURY AGREES 20 MILLION POUND OLYMPIC SPONSORSHIP
Cadbury (CBRY.L) has agreed to sponsor the London Olympics, and has paid more than 20 million pounds to use the event to market its products and become the sole supplier within the Olympic Park. The move will give organisers much needed funds amid fears that financial turmoil will leave them struggling to meet sponsorship targets. Cadbury had previously raised concerns after the company announced it was to shed 600 jobs despite an increase in third-quarter sales.
EXPRESS NEWSPAPERS TO SHUT FINAL SALARY SCHEME
Express Newspapers has closed its final salary pension scheme because of financial concerns. Robert Sanderson, finance director, wrote to members of the scheme last week to announce it would be closed by the end of this year. Mr Sanderson said that, in addition to its contributions, the company was adding 500,000 pounds each month because of the scheme's deficit. The letter said: "Despite these large contributions, the cost of providing pensions for the existing fund continues to increase." It is believed that nearly a third of Express Newspaper's 270 employees are members of the fund.
Prepared for Reuters by Durrants
