PRESS DIGEST - British business - July 10

The Times

BLOODIED BUT UNBOWED, ROSE WINS THE DAY AGAINST REBEL M&S INVESTORS

Almost one in four Marks & Spencer (MKS.L) investors at the retailer's annual general meeting refused to back Sir Stuart Rose's controversial promotion to executive chairman, with 22 percent of the company's total investor base either abstaining or voting against his re-election to the board. A number of influential institutions, such as Legal & General (LGEN.L), are among those understood to have registered their protest by abstaining. One fund manager said: "We have made our point and we will keep on making it."

BRITISH ENERGY NUCLEAR POWER OUTPUT SLIDES

British Energy BGY.L said on Wednesday its electricity output fell by 17 percent in the second quarter, down from 13.8 Terawatt hours (TWh) in the same quarter last year to only 11.4 TWh. An increase in output at BE's coal-fired power plant at Eggborough, from 0.8 TWh to 1.9 TWh, partially offset lower nuclear output, which fell from 13.0 TWh in the second quarter of 2007 to 9.5 TWh in the same period this year.

B&B IS "PRICING ITSELF OUT OF MARKET" BY PUSHING UP COST OF BUY-TO-LET LOANS

Bradford & Bingley BB.L has cut its lending to landlords by pulling its Mortgage Express range from Moneyfacts, a Web site that potential borrowers use to compare interest rates. A mortgage broker with access to the withdrawn products said interest rates on them had risen sharply. "It's been increasingly evident in the past few weeks that they're trying to price themselves out of customers' range. They don't compare well with any other provider," the broker said. But a B&B spokeswoman said a select group of mortgage brokers were still offering the loans. "This is just so we can better manage our distribution model," she said.

The Daily Telegraph

SALES DROP FORCES BOVIS TO HALT PLANS FOR NEW HOMES

Bovis (BVS.L), one of the UK's largest housebuilders, will next week put a stop to speculative development of new homes as it reels from plummeting sales volumes. The company said it would be halting production over the summer to assess the market, while it underlined its intention to complete homes that have been reserved or pre-sold. Chief executive David Ritchie said he would revisit the issue of speculative development next month.

BOOKER PROFITS RISE BELIES DOWNTURN

The cash-and-carry chain Booker (BOK.L) appeared to have sidestepped the worst of the consumer downturn as it reported a 3.3 percent rise in like-for-like non-tobacco sales. The chief executive, Charles Booker, said: "This was a good performance and Booker continues to make progress in a challenging market." The company blamed the smoking ban for a 2.2 percent decline in tobacco sales. Booker's shares closed up 0.5 pence at 25 pence.

CENTRICA PAYS 375 MILLION DOLLARS FOR NORTH SEA ASSETS

Centrica (CNA.L), owner of British Gas, has paid 375 million dollars (190 million pounds) cash to Marathon Oil for gas-producing rights and exploration rights in the Heimdal region of the Norwegian North Sea. With production in the North Sea in decline, Centrica is seeking acquisitions to bolster reserves and ensure continued supply to its UK customer base. According to Natalie Casali, analyst at JP Morgan, the deal was "a step in the right direction, but doesn't solve (Centrica's) overall problem. They will need to do several more deals like that to reach their target."

The Independent

BT EXPANDS ONLINE DIRECTORIES BUSINESS WITH THE 20 MILLION POUND ACQUISITION OF UFINDUS