PRESS DIGEST - British business - June 28

The Times

RESOLUTION BLAMES BOARD AS ITS RESCUE PLAN FOR BRADFORD & BINGLEY COLLAPSES

Investors in Bradford & Bingley BB.L have called for chairman Rod Kent to step down after the collapse of Resolution's 400 million pound funding plan for the mortgage bank. The bid was widely supported by B&B's shareholders, including Standard Life (SL.L), who expressed their disappointment at the latest development. Resolution blamed Kent and his advisers Goldman Sachs for their decision, as well as the "entrenched position of the board of B&B".

SAVING GOES BY THE BOARD AS HOUSEHOLD INCOME SHRINKS

Official figures reveal that sharp rises in interest payments, taxes and inflation reduced households' real disposable income by 1.1 percent in the first quarter. The fall was the first for two years and the steepest since 1999. It represents the equivalent of 140 pounds a year for every adult, overshadowing pay rises of up to 1.4 percent in the same period. As a result, household saving in proportion to income fell to just 1.1 percent in the quarter, a record low since records began in 1959.

STORM CLOUDS GATHER OVER BRITAIN'S LAST OIL FRONTIER

An argument over the exploitation of gas fields in the West of Shetlands area is hindering a major offshore gas development. The government is keen to see extensive investment and infrastructure in the Atlantic Margin, including offshore platforms that could provide fresh fuel supplies to Britain. However, deep water and violent storms in the area make exploration expensive and dangerous. Some oil companies have expressed doubt about the prospects for big finds and want a lower-cost development. French multinational Total (TOTF.PA) is seeking a quick resolution to ensure gas comes ashore by 2012, while the government is keen for a tender to be conducted among the West of Shetlands operators to decide whether there is a willingness for investment in a large piece of infrastructure.

The Daily Telegraph

NIL-PAID RIGHTS GAIN VALUE IN HBOS FOUR BILLION POUND ISSUE LAUNCH

Speculation that short-sellers were protecting their short positions has boosted the launch of HBOS's HBOS.L four billion pounds rights issue. Nil-paid rights in the shares traded between 12 pence and 14 pence on Friday, giving the chance to the bank's two million private investors to take advantage of the free dealing service should they decide to offload their holdings. Richard Hunter, head of UK equities, said: "Somewhat uniquely, the nil-paid rights have attracted a value. We have brought this value to the attention of our clients, who may wish to sell having expected no value at all." The shares rose 2.5 pence to 278.5 pence, slightly above the 275 pence rights price.

CITI WARNS OF BARCLAY'S NINE BILLION POUNDS CASH CALL DEFICIT

A note issued by Citigroup warning that Barclays' (BARC.L) 4.5 billion pounds fund-raising is about nine billion pounds short helped drag down the shares at the British bank, posting a loss of 5.75 pence at 298 pence on Friday. Citi analysts said that bringing Barclays' capital in line with its closest peer, Royal Bank of Scotland (RBS.L), would require a further 2.5 billion pounds, while credit-related writedowns to the same level as that of RBS could send the increases to "circa nine billion pounds". Citi forecasts that the bank will have a tier one capital ratio of 5.8 percent at the end of 2008, "the ninth worst (of 66 banks) in Europe."

BERKELEY CALLS BOTTOM BY BUYING LAND

Berkeley Group BKG_u.L has decided to spend up to 360 million pounds on buying land using cash that was destined to be returned to shareholders, in a bid to take advantage of the major price falls in the residential land market. Rob Perrins, the housebuilder's finance director, said: "We are seeing opportunities. This might not be the bottom of the market but there are definitely opportunities out there and if we don't move now we might miss the chance." Berkeley's new strategy was unveiled alongside full-year results that showed a 3.2 percent rise in profits to 194.3 million pounds and an eight percent increase in revenue to 991.5 million pounds.

The Independent

CHICKEN COMES HOME TO ROOST FOR TESCO AS TV CHEF LEADS AGM PROTEST