PRESS DIGEST - British business - Sept 10

The Times

CUT PROGRAMME BUDGETS AT YOUR PERIL, SORRELL TELLS ITV EXECUTIVES

It has emerged that WPP (WPP.L) chief executive Sir Martin Sorrell has advised ITV's (ITV.L) most senior executives not to reduce the broadcaster's one billion pound programming budget, despite the advertising revenue pressure. The chief executive of the world's second biggest advertising group told 100 ITV executives that slashing spending would ultimately scare off advertisers. Sir Martin said: "It is going to remain tough and I think you have to batten down the hatches, obviously, on the cost side, but you've got to remember that you're not going to cut your way to growth."

REDROW WRITES DOWN VALUE OF ITS LAND BANK BY 259 MILLION POUNDS

On Tuesday, Redrow (RDW.L) announced it was writing back its land values by 42 per cent and called the housing slump the worst it had ever seen, continuing the pain being felt throughout the housebuilding sector. Redrow took a 259 million pound writedown on its land bank, but analysts suggested that it could have been optimistic, despite the move being the biggest that the housebuilding sector has seen. Dresdner Kleinwort analyst Alistair Stewart said: "We believe land will fall by at least 75 percent."

PATIO HOTEL TO BE REBRANDED

The 168-room Patio Hotel in Aberdeen is set to be rebranded under the Doubletree by Hilton franchise. The move comes after its sale for a rumoured 30 million pounds to 40 million pounds to Invesco Real Estate. Patio Hotels UK, the vendor, was advised by Molinaro Koger.

The Daily Telegraph

BG PULLS OUT OF BID FOR ORIGIN

BG Group (BG.L), the gas company, has announced it will not pursue its bid for Australia's Origin Energy (ORG.AX). The move follows a joint venture deal on Monday which saw Origin team up with ConocoPhillips (COP.N) to effectively value the Australian company at almost double BG's 6.3 billion pound offer. Frank Chapman, chief executive of BG, must now go back to the drawing board for his ambitions to build a large presence in the Asia-Pacific liquefied gas market. Shares in BG dropped 45 pence to reach 10.48 pounds.

TAXPAYERS NET 254 MILLION POUNDS FROM FINAL QINETIQ SALE

The controversial privatisation of Qinetiq (QQ.L) has finally been completed after the government sold its remaining 18.9 percent stake in the defence research group. The move has generated 254 million pounds for the taxpayer after costs. Shares were placed with several institutions at 206 pence, which is just six pence higher than the price the company floated in 2006. The Defence Ministry said: "The government always made it clear that ultimately it anticipated selling its entire financial stake in order to realise its financial investment and to achieve best value for money for the UK taxpayer."

The Independent

3I APPOINTS FTSE100's SECOND FEMALE FD

On Tuesday, Julia Wilson became the second female finance director in the FTSE100 after being appointed to the role at 3i. Simon Ball, the investment manager's existing finance director, is set to leave his post in December to be replaced by Wilson. She joined 3i as a deputy finance director in 2006, and now joins Jann Brown, of Cairn Energy, as the only women in the FTSE100 to hold the position.

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