PRESS DIGEST - British business - July 13

The Times

COWDERY TO LOOK PAST FRIENDS PROVIDENT BOARD AND TAKE 1.7 BILLION POUNDS BID TO SHAREHOLDERS

Insurance tycoon Clive Cowdery is considering evading the board of Friends Provident (FP.L), the life and pensions group, taking his 1.7 billion pounds offer directly to shareholders. The move comes as Britain's fourth-biggest life insurer is expected to confirm on Monday that it has rejected an all-shares offer from Resolution (RSL.L), Cowdery's financial services consolidator. Despite the setback, Resolution is believed to be keen on a deal which would help Cowdery complete a grand plan of creating a super-sized insurer. In a separate statement on Monday, Resolution, which floated in December, is expected to reveal that it has lodged an expression of "preliminary interest" for Friends.

HENDERSON EAGER TO PURSUE FRESH ACQUISITIONS AND ADD MANAGERS

Henderson Group (HGGH.L) is set to announce plans to pursue a new round of acquisitions as it seeks to take advantage of "a period of unprecedented change". Two months after it completed a 115 million pounds takeover of New Star, the FTSE 250 fund manager is likely to tell investors this week that it is eager to explore international joint ventures and may hire additional fund managers to join its 840-strong workforce worldwide. Chief executive Andrew Formica said: "The opportunity for independent asset managers to expand their businesses, both geographically and along product lines, has never been greater." The company, which manages around 53 billion pounds of assets, will publish its results for the first six months of the year on Thursday.

CENTRICA DEAL TALKS

UK energy giant Centrica (CNA.L) (CNA.L) will meet Venture Production (VPC.L) shareholders this week in an attempt to secure support for its 1.3 billion pounds bid for the North Sea gas producer. The board of Venture has rejected the 845 pence-per-share offer, saying that the bid, which the British Gas owner is refusing to negotiate, undervalued the business and was opportunistic. Sam Laidlaw, the chief executive of Centrica, is confident this week's talks will convince Venture investors to back the deal.

The Daily Telegraph

EXPANDING RENTOKIL IS ON THE SCENT FOR MORE DESERT RATS

Rentokil Initial (RTO.L) has secured a three-year contract worth around 24 million pounds from the Libyan government that will see the pest control group tackling chronic rat infestations in the country's biggest cities. Chief executive Alan Brown said he identified big opportunities for similar operations in the area. "We are looking at Saudi, Egypt, the UAE and are also building a commercial business in Libya for private companies or individuals." Rentokil's move comes as its turnaround strategy starts to make substantial steps forward. The group, which has 1.3 billion pounds of net debt, plans to retire early a 125 million pounds top-up loan due in September 2010 thanks to its improving cash-flow.

MEMBERS CALL FOR CHANGE IN RUNNING OF NETWORK RAIL

A dozen Network Rail members are expected to call for a major change in the group's much-criticised corporate governance at a members meeting on July 21, the day before the company's annual meeting. The 12-strong group's findings on reforming Network Rail's running will be presented before the company's new chairman, Rick Haythornthwaite, the successor of Sir Ian McAllister who has consistently opposed reform in the 106-strong members group. It is understood that members could also seek a protest vote on this year's bonus for directors.

The Independent

MOSS BROS EYES 40 NEW SHOPS IN "BUYER'S MARKET"

Moss Bros (MOSB.L) is planning to expand its store numbers by up to 40 percent as crisis-hit landlords are increasingly willing to offer financial concessions. The men's branded suit specialist, which has identified 40 "preferred locations" for opening new outlets, said that in the 16 weeks to May 23 like-for-like sales dropped by 3.9 percent. Unit sales of suits jumped by 27 percent in the same period, as employees who fear for their jobs smarten up or seek to increase their chances of having a successful recruitment interview by dressing up.

BORDERS SHUTS FLAGSHIP STORE