PRESS DIGEST - Financial Times - May 5
BROWN SAYS ECONOMY IS PRIORITY AS HE FEELS THE ELECTORATE'S 'HURT'
Gordon Brown said that the UK economy was his "first focus and immediate priority" as he sought to regain public trust following Labour's humiliation at Thursday's local elections. Speaking on BBC One's The Andrew Marr Show, the prime minister also dismissed rumours of an impending coup by dissident backbenchers and pledged to show resilience in the face of financial turmoil. Mr. Brown acknowledged the public's concern over rising fuel prices, food prices and mortgage costs, saying "I feel the hurt they feel."
CALL TO DELAY EXTENSION OF FLEXIBLE WORKING
Manufacturers have called for a delay in the government's plans to extend flexible working rights to millions of parents in order to give companies more time to cope with existing rules. The EEF, representing over 6,000 manufacturers, warned that employers could end up refusing "legitimate" requests for flexibility if faced with additional calls for part-time working. Some six million employees have the right to request part-time and flexible working, of which 3.6 million are parents of children who are aged under six or disabled.
NORTH BEATING SOUTH ON NEW JOBS, SAYS STUDY
A new study by researchers at the Hull University Business School, Cranfield School of Management and St Andrews University suggests that policies to boost enterprise need to take account of regional differences. The study showed that the overall rate of self-employment was higher in the more prosperous south of the country, at 23 percent among men and 11 percent among women, compared with 17 percent and eight percent in northern regions. However, the rate of job creation was significantly higher in the north, especially among men, with entrepreneurs in the north employing 3.5 people on average compared with 2.6 in the south. The study covers a period up to 1991; however, differences in self-employment rates have proved persistent.
TNS REBUFFS OFFER FROM WPP
Market research group Taylor Nelson SofresTNS.L has rejected an unsolicited 948 million pound bid from WPP(WPP.L), the world's second biggest marketing group. The part-cash, part-share offer was received on Saturday and valued each TNS share at 230 pence, based on WPP's closing price on Friday. TNS, who last week announced an agreed nil-premium merger with Germany's GfK, rejected the bid on Sunday after a board meeting unanimously decided that it was not in shareholders' best interests. Chairman Donald Brydon described the offer as an "opportunistic proposal ... [that] substantially undervalues the company even on a standalone basis".
REDROW DENIES BELLWAY BID TALK
Executives at housebuilder Bellway(BWY.L) have failed to deny speculation that it had approached smaller rival Redrow (RDW.L) about a possible merger that would form the third-largest force in the sector. An article in the Mail on Sunday reported an approach by Bellway with a view to an all-share merger that would create a company with an equity value of 1.2 billion pounds. UK housebuilders are currently facing curbs on new projects and a fall in share prices as a result of the falling values of land banks and completed properties. Both Bellway and Redrow have seen their stock lose over half of its value over the past 12 months.
