PRESS DIGEST - British business - May 11

The Sunday Times

BAE BOSS SET TO LAND AT BABCOCK

Mike Turner, outgoing chief executive of BAE Systems (BAES.L: Quote, Profile, Research, Stock Buzz), is in negotiations to become chairman of support services group Babcock International (BAB.L: Quote, Profile, Research, Stock Buzz) when its current chairman Gordon Campbell stands down next year. Turner, on the Babcock board in the late 1990s, will initially join as a non-executive director. Confirmation of the appointment could be made alongside a strong set of results which Babcock is due to announce this week.

AMERICANS LOOK INTO RBS SUB-PRIME DEALS

Royal Bank of Scotland (RBS.L: Quote, Profile, Research, Stock Buzz) is being investigated by the U.S. Securities and Exchange Commission over its exposure to American sub-prime mortgages. The probe, launched in March, covers the bank's interests in securities backed by sub-prime home loans, as well as residential mortgages written by U.S. subsidiaries. Details of the investigation are buried in the prospectus for the bank's imminent 12 billion pound rights issue, which is to be put to a vote at a shareholder meeting this week. A spokesman for RBS declined to comment on the matter beyond what has been said in the prospectus.

FRIENDS PONDERS SHARE SPLIT

Friends Provident (FP.L: Quote, Profile, Research, Stock Buzz) is considering a share split to dispose of 52 percent in asset management business F&C (FCAM.L: Quote, Profile, Research, Stock Buzz). The life assurer has been scouting out interest in the stake as part of a disposal programme. A number of potential bidders, including Aberdeen Asset Management and Blackstone, have explored a possible offer but it is understood Friends has yet to receive any offers that match its expectations.

The Sunday Telegraph

SOARING COCOA PRICE FORCES CADBURY REVIEW