PRESS DIGEST - Financial Times - Nov 9

BOOTS WAITS ON SWEDISH RESULT

Alliance Boots is among the bidders poised to learn this week whether it has been successful in an auction for part of Apoteket, Sweden's monopoly pharmaceuticals retailer. According to people familiar with the situation, Alliance is bidding for one or two large clusters of pharmacy stores being sold by the Swedish government as part of its privatisation of the chain. The auction provides a rare chance for international investors to enter an underdeveloped pharmacy market in a wealthy European economy.

CADBURY EXPECTED TO RECEIVE HOSTILE BID

It is thought that Kraft (KFT.N) will go hostile with its takeover of Cadbury (CBRY.L), which will meet on Monday to discuss the U.S. food group's offer. Kraft is likely to stick close to the terms of its original 10.2 billion pound proposal, but Cadbury's investors have said they are not prepared to consider an offer seriously unless it is above 8 pounds a share. Sources close to Kraft say it is under no pressure to significantly raise its original offer, which proposes 300 pence in cash and 0.2589 new Kraft Foods shares per Cadbury share.

VODAFONE PREPARES FRESH ROUND OF COST CUTTING AS REVENUES FALL

The chief executive of Vodafone (VOD.L), Vittorio Colao, is gearing up for a fresh round of cost-cutting, in an attempt to offset plummeting revenue at the mobile phone operator. Shares in Vodafone have underperformed the FTSE 100 by 16 percent this year, partly due to concern about how the group's underlying revenue at most of its core European businesses is falling. Analysts at Vodafone's broker, Citi, say the group could increase its target of reducing operating expenses to 1.5 billion pounds by March 2011, from 1 billion pounds.

EMPLOYERS COOL ON JOB PROSPECTS

According to a survey published today by the Chartered Institute of Personnel and Development and KPMG, the jobs market remains weak and could relapse. The news comes despite of evidence showing employment prospects are deteriorating less rapidly than at any time since the recession began. The survey of 700 employers suggests the outlook remains bleak in the manufacturing and public sector, but looks brighter in private-sector services.

LABOUR OPTS FOR NUCLEAR OPTION ON ENERGY

The government will unveil plans on Monday for a massive expansion of nuclear power, as it publishes an energy strategy designed to smooth the way for power stations and other big infrastructure projects. The government expects roughly 30 percent of Britain's electricity will come from nuclear power in the 2020s -- up from less than 20 percent today -- following the construction of between 10 and 12 new reactors. The plans envisage the most ambitious expansion of nuclear power anywhere in Europe.

TRINITY LOOKS TO SHUT FINAL-SALARY SCHEME

Trinity Mirror (TNI.L), the publisher of the Daily Mirror and many regional newspapers, has revealed plans to shut its final-salary pension scheme to existing members. The group informed staff over the weekend that it was beginning a two-month consultation on the proposals. Trinity's pension deficit soared to 275 million pounds in June this year, from 37 million pounds in 2001, in spite of additional contributions of 259 million pounds by the company in the intervening period. Its shares closed 2.5 percent lower at 161.4 pence on Friday.

DOUBLE-DIGIT GROWTH FOR BRIGHTHOUSE

BrightHouse enjoyed double-digit revenue and profit growth in the six months to September. Rising unemployment and economic uncertainty helped widen the customer base of the company, which rents high-end consumer durables to people who cannot get credit, by 14.7 percent to 156,000 in the first half. "We're not selling jewellery, we're selling beds and sofas and washing machines and TVs. We would project there will continue to be a substantial proportion of the UK population that will find the rent-to-own proposition attractive," says Chief Executive Leo McKee.

MARKETS REVEAL GROWING FEARS OF INFLATION

UK and U.S. market expectations for inflation have reached their highest levels since late last year, amid demand from investors for government securities that offer protection from rising prices. The development reflects fears that higher inflation will result from a prolonged period of low overnight rates, which was signalled last week when the Federal Reserve, Bank of England and the European Central Bank all indicated that interest rates would remain very low for sometime to come.