PRESS DIGEST - British Sunday business - July 20

The Sunday Times

SHELL SELLS WIND STAKE

Royal Dutch Shell(RDSa.L) is to sell its stake in the London Array to EonEONG.DE and Dong Energy. The utilities have agreed to divide Shell's one-third stake in the partnership evenly between them. The decision means that development of the world's largest offshore windfarm will almost certainly go ahead. Eon and Dong will now have to shoulder all of the 2.5 billion pounds costs of the scheme which is already seven years in development.

FAIRGROUND ATTRACTION'S SNAP BUYOUT

Picsolve has been bought by Fidelity Equity Partners in a 33 million pound management buyout. The company, which runs camera installations at venues including Alton Towers, the London Eye and Madame Tussauds in Britain, Busch Gardens in the US and Parc Asterix in France, has a turnover of 20 million pounds. The management of the Derby-based company, will own a slice of the company as part of the deal.

101 MILLION POUNDS MOBILE PAYOUT 4U

In contrast to the trend for high-street belt tightening, the owners of Phones 4U split a 101 million pound payout last year. Providence Equity Partners and the company's management took out the cash less than two years after they bought the business from founder John Caudwell for 778 million pounds. The amount is the same as the equity they put up for the mobile phone retailer. Phones 4U has opened 64 new stores since the takeover and has been investing in its insurance arm, having just bought St Andrew's Membership Services from HBOSHBOS.L for 7.5 million pounds.

The Sunday Telegraph

HSBC EDGES CLOSER TO SHANGHAI LISTING

HSBC(HSBA.L) has held talks with the China Investment Corporation (CIC) over a potential investment in Europe's largest bank which is vying to become the first foreign company to list on the mainland Chinese bourse. The discussions are thought to have included the possibility of CIC buying shares in the open market. HSBC was the first global financial institution to signal its exposure to the collapse of the American sub-prime mortgage secto, but it is one of the most strongly capitalised banks in the world and while the FTSE 350 banking sector has fallen by 28 per cent this year, HSBC shares have only fallen six per cent.

DAVID LLOYD LIMBERS UP FOR DEAL WITH TROUBLED ESPORTA

On Monday, David Lloyd Leisure will table a proposal to merge with its rival Esporta which will largely negate the need to raise significant levels of debt to finance the deal. Esporta has attracted interest from a number of other fitness groups but the contraction in the debt markets has made it difficult for suitors to raise the financing for a takeover. David Lloyd has hired Citigroup to advise on its bid for Esporta which is estimated to be worth around 150 million to 200 million pounds.

TREASURY COMMITTEE SEEKS EQUITABLE SOLUTION

This week, MPs are to call on fellow members of the Treasury Select Committee to help find ways to pay compensation to the victims of the near collapse of Equitable Life. Following last week's report from the Parliamentary Ombudsman, which accused the government of a 'decade of regulatory failure', Philip Dunne MP will meet with 13 other committee members and press them to hold a formal meeting which would be focused on finding government resources to pay money to shareholders who saw their investments lose up to 50 per cent of their value.

The Observer

INVESTORS SHUN TAYLOR WIMPEY OVER PENSIONS DEBT