PRESS DIGEST - Financial Times - Dec 21

The Financial Times

BRAKE PUT ON SIX BILLION POUND SELL-OFFS

Analysis by the Financial Times has shown six billion pounds worth of potential privatisations have stalled or been ruled out by the government because of regulatory concerns, political problems or difficult markets. Plans for a two billion pound partial privatisation of CGD, the government fund that pioneered venture capital investment in the Commonwealth, have been shelved. The one billion pound plus sale of the government's stake in the uranium enrichment company Urenco appears to be far from completion. The hiatus in privatisations leaves the government with no major cash-raising deals in the pipeline.

TATA LEADS RACE FOR JAGUAR AND LAND ROVER

Ford (F.N) is set to choose Tata Motors (TAMO.BO) of India as its preferred bidder for Land Rover and Jaguar, with an official announcement likely to be made after the New Year. Those close to the situation say Tata has pulled ahead of rival Indian carmaker Mahindra & Mahindra and One Equity with an offer said to be in the region of 1.8 billion dollars to 2.2 billion dollars. Ford has leaned towards Tata in spite of concerns expressed by Jaguar's dealer association that Indian ownership would devalue the luxury car brand. The successful bidder would have to sign an estimated 40 contracts, ranging from engine production to the operation of IT systems.

DARLING SEEKS FINANCIAL LIFELINE FROM OIL AND TAXES

The Treasury is hoping to hit its latest government borrowing forecasts through bumper January tax receipts and continued high oil prices. In the 2007-2008 financial year to November, public sector net borrowing was 36.2 billion pounds, worse than 1993-94, when borrowing rose to a record 51.1 billion pounds. Public borrowing as a share of national income is now on course to exceed the EU Maastricht treaty limit of three percent. PwC economist John Hawksworth said: "The chancellor is likely to be playing Scrooge for some years in order to get this uncomfortably high budget back under control in the medium term."

CALL TO AVERT AIRPORT STRIKES

In an effort to avoid thousands of flights being cancelled nest month after ground staff at some of Britain's largest airports voted to strike, union leaders are to call for last-ditch talks with the airport operator BAA. Ground staff were balloted after BAA revealed plans to close its final salary pension scheme to new employees. Separately, Virgin Atlantic cabin crew have announced two 48-hour stoppages next month in a pay dispute.

PHONE-IN BREACHES COST C4 1.5 MILLION POUND FINE

Channel 4 was fined 1.5 million pounds by Ofcom over premium-rate phone-ins. The fines concerned the exclusion of callers from the chance of winning a quiz on the Richard & Judy programme and weighting the chances of earlier callers winning prizes on the Deal Or No Deal programme. Channel 4 said it accepted the fines. Ofcom also said it was investigating complaints by viewers over the final of ITV's (ITV.L) X-Factor after scores of callers said they could not register a vote.

KELLER REMAINS UPBEAT OVER PROFIT FORECASTS

Shares in ground engineering specialist Keller (KLR.L) rose 20.5 pence to 661 pence on Thursday after the company, seeking to ease concerns over its exposure to the U.S. housing market, said it expected to beat profit forecasts for the year. Chief executive Justin Atkinson said: "It really is business as usual. We believe our strong order book across all geographic regions, our robust business model and broad geographic spread should reassure the market." Keller has built up forward orders for about the next six months, compared with about five months last year.

LAKSHMI TAKES 20 PER CENT STAKE IN QPR

Queen's Park Rangers has welcomed Lakshmi Mittal into its fold after the chief executive of steelmaker ArcelorMittal bought a 20 per cent stake in the Championship football club. Mittal will install his son-in-law, Amit Bhatia, on the board.

BSKYB TOLD TO CUT ITV STAKE