PRESS DIGEST - British business - April 3

The Times

PILOTS' STRIKE THREAT PUTS MORE PRESSURE ON WALSH

British Airways (BAY.L) chief executive Willie Walsh is facing increasing pressure, as the airline lost 1.75 pence to 247.5 pence on Wednesday. The British Air Line Pilots' Association is readying a statement slamming Walsh and calling for more effective leadership of the group, while shareholder Axa Investment Managers' UK equities fund manager Richard Marwood wants to know how much the chaos at Heathrow's Terminal 5 will cost, saying: "I've read that it could reach 50 million pounds. A one-off cost we can live with, but if it drags on it risks damaging BA's reputation." Walsh is also under fire for blocking Balpa strike action over BA's planned OpenSkies launch.

CARPHONE MAY BID FOR TISCALI UK ARM

Carphone Warehouse (CPW.L) may bid for Tiscali's UK arm "at the right price," according to a source, though the mobile phone group on Wednesday night declined to comment. Tiscali on Monday said that it had appointed JPMorgan Chase and Banca IMI to evaluate strategic options targeting higher shareholder value. Market sources have put a price tag of between 550 million pounds and 650 million pounds on the unit. US mobile retail chain Best Buy has also been linked with a bid for the business and is already in partnership with Carphone Warehouse.

THREAT OF UNION ACTION CASTS CLOUD OVER 20 BILLION POUNDS AUCTION TO RUN SELLAFIELD

The Prospect, GMB and Unite unions have rejected a pay offer of two percent for their nuclear workers, the former's national officer for energy, Mike Graham, saying: "We are absolutely disgusted with the pay offer and it could well lead to industrial action. This is a time of the biggest change for Sellafield and we are being offered a very low reward." A spokesman for the nuclear plant said that the offer "is in line with the government's recently published public sector pay guidelines," and is "intended to help increase the efficiency of the business, which is a necessary step towards securing our long-term future."

The Daily Telegraph

M&S BID TO QUELL ROSE ROW

Marks & Spencer (MKS.L) has acted to appease investors angry over the promotion of Sir Stuart Rose to executive chairman by agreeing to a number of concessions. Indeed, the retailer is thought to have informed the Association of British Insurers that Rose will be put forward for re-election each year, that he will not be given a pay rise, and that a new, heavyweight non-executive will be appointed. The M&S board has, meanwhile, been backed by one of its top five shareholders, Invesco Perpetual, which described as "entirely appropriate" Rose's elevation.

13 MILLION POUNDS FLOOD BILL FOR SEVERN TRENT

Severn Trent (SVT.L) has disclosed that its bill for last summer's Gloucestershire flooding was less than first anticipated, at between 13 million pounds and 17 million pounds, following insurance recoveries of 16 million pounds; earlier estimates had been put between 25 million pounds and 35 million pounds. Severn, which lost 54 pence to 14.14 pounds, said it would meet Ofwat's operating costs target in the full-year. The water company has spent up to 110 million pounds on renewing infrastructure.

B&Q POACHES SUPERDRUG CHIEF

Euan Sutherland, chief executive of the Superdrug and Savers chains, has been poached by B&Q parent Kingfisher (KGF.L) to lead its UK operations - effective "in the next few months" - in the wake of a management overhaul instigated by new chief executive Ian Cheshire. Sutherland, who will assume day-to-day responsibility for B&Q, commented: "It is clear to me that there is much more potential to come from the ongoing programme of renewal at B&Q." Cheshire spoke of Sutherland's appointment as a "key step" in unlocking Kingfisher's vast potential.

The Independent

WOOLWORTHS SLASHES DIVIDEND DESPITE MOVE BACK INTO BLACK