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The Daily Telegraph

VEDANTA MULLS ALUMINIUM SPIN-OFF

Mining group Vedanta Resources has created plans to demerge its aluminium division. The 20 billion dollar division could be split from the company as early as this summer, with five other divisions of the company expected to be split off over the next few years. The demergers are designed to add shareholder value by simplifying the structure of the group. The majority owners of the group, the Argarwal family, are expected to retain controlling stakes in the newly created businesses while smaller portions are floated in Mumbai before subsequent listings in London or New York.

GREEN LAUNCHES 'COUTURE' TESCO

UK supermarket Tesco has announced plans to launch a "couture" range of clothing to be sold on the internet. The line of clothing, F&F Couture, will feature 16 items priced between £40 and £140 and is the first venture into high fashion by a UK supermarket. Terry Green, chief executive of Tesco's UK clothing operations, said: "This signifies a new era for supermarket fashion." Green recently announced that he is to stand down from Tesco clothing after five years, during which time sales at the division increased from 700 million pounds to over one billion pounds, representing just over 9 per cent of the market.

BOYCOTT THREAT BY SUPPLIERS TO BLACKS

Suppliers to outdoor and camping equipment retailer Blacks are threatening to boycott the company if it is taken over by retailer Sports Direct, which announced earlier this month that it was considering buying out other shareholders. Suppliers object to the takeover after Sports Direct took over sports retailer Field & Trek in 2007 only to see Field's turnover fall by 5 million pounds in its first year after the deal. Blacks has announced that it is planning to pursue an alternative fundraising manoeuvre that will not require the consent of Sports Direct, which has a 28 per cent holding in Blacks.

AEGIS TO PREDICT ADVERTISING UPTURN

Media and market research firm Aegis Group is expected to predict an industry-wide improvement in advertising and marketing sales. Aegis, which owns three advertising agencies, is likely to post full year pre-tax profits for 2009 of 137 million pounds, down from 167 million last year. Its revenue is expected to have increased slightly to 1.36 billion pounds. Aegis is expected to announce its cost cutting measures succeeded to the amount of 37 million pounds saved in the first nine months of 2009.
The Independent

SAINSBURY'S TO PAY BONUSES EARLY TO BEAT TAX INCREASE

Supermarket group J Sainsbury is to pay its bonuses early in order to avoid the 50 per cent rate of income tax on high earners, which will be introduced on April 6. Sainsbury's said that it was fairer that bonuses were taxed in accordance with the rates applied over the financial year in which the bonuses were earned. Bill Dodwell, a tax partner at Deloitte, suggested that such practices were being carried out across a number of companies, with some "pre-paying" a proportion of next year's salary to beat the tax change.

FIRMS NOT READY FOR DATA RULES, SAYS MWR

MWR InfoSecurity, a risk consultancy specialising in data protection, says that many employers are unaware of regulation to come into force April 6 that will see organisations fined up to 500,000 pounds for failing to properly protect personal data. MWR's Jonathan Care said that any organisation storing sensitive data could be subject to action by the Information Commissioner's Office, though the biggest fines would be imposed only in the most serious cases.

FSA RULES COULD FORCE MUTUALS OUT OF BUSINESS

MGM Advantage, one of Britain's leading mutual insurers, has warned that new Financial Services Authority regulations could damage the sector. Chief executive Chris Evans said that a change in FSA policy "will force many mutuals to either consider merging or closing to new business and going into run-off." Mutual insurers are suffering the effects of a retreat from "with-profits savings," but a letter from FSA head of retail John Pain made clear that mutuals will be prevented from writing non-profits business unless that they can prove that it will not harm existing with-profits policyholders.
The Times

BANK WARNS WEAK GROWTH COULD SPARK JOB LOSSES

The Bank of England has warned that the UK could see another surge in unemployment if the recovery in demand is slower than expected or more businesses are forced into liquidation. The Bank also suggested that misplaced optimism among workers could lead to redundancies as businesses seek to contain labour costs in the face of pressure for pay rises. Bank figures show that employment is down 1.9 per cent over the recent economic downturn, compared with a 3.4 per cent fall during the recession of the 1990s and 2.4 per cent in the early 1980s.

ONLINE MUSIC SALES OVERSHADOW CDS

According to figures from PRS for Music, the company that collects royalties for British songwriters, the growth in royalties of music sold via digital and online formats outpaced falling sales of CDs for the first time last year. PRS for Music announced an overall 2.6 per cent rise in annual revenue during 2009 to 623 million pounds and said the 12.8 million pound growth in digital music revenue last year had more than compensated for the 8.7 million loss in royalties from falling CD sales.

ASKING PRICES HIT BY SUDDEN INCREASE IN HOMES FOR SALE

A large increase in the number of people putting their home up for sale has reduced the traditional March increase in asking prices to its lowest recorded level. According to property website Rightmove, asking prices rose by 0.1 per cent this month compared with the average increase of 1.3 per cent. House prices traditionally rise in March after a slump during the winter. The average asking price has increased by 5.3 per cent since March 2009 and 3.7 per cent since the start of 2010.
The Guardian

BROWN WADES INTO BRITISH AIRWAYS STRIKE

The prime minister held talks with the joint general secretary of the Unite trade union, Tony Woodley, this weekend to discuss possible ways to avert upcoming strike action by cabin staff at British Airways, according to sources close to the situation. Gordon Brown's tone is believed to have been less aggressive than that used by Transport Secretary Lord Adonis, who admonished Unite on BBC1's Andrew Marr television show for calling a "totally unjustified" number of strikes. A Downing Street source said: "The PM has condemned it, Andrew has condemned it. The whole government is clear that we want both sides back at the table and talking"

BUY-TO-LET TAX PLAN ATTACKED AS BLOW TO FIRST-TIME BUYERS

The lobby group Priced Out, which campaigns on behalf of first-time home buyers, has warned that thousands of first-time buyers will be priced out of the housing market should the Treasury press ahead with plans to give tax breaks to buy-to-let property investors. Priced Out estimates that high house prices have displaced around 1.2 million new households from owner occupation and led to 1.4 million fewer first-time buyer mortgages since 1999.

PRU COURTS CITY TO BACK BID FOR AIG ASIAN ASSETS

In a series of meetings with investors, the insurer Prudential is trying to gain support from the City for its 23 billion pound takeover of American International Assurance, the Asian Arm of the insurer AIG. Investors are being asked to buy 14 billion pounds worth of new shares in Prudential in order to fund the acquisition. Prudential has outlined official estimates of revenue gains that can be made from the deal in a formal prospectus that will accompany the new share issue.
Keywords: PRESS DIGEST British Business =4

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The Daily Telegraph

VEDANTA MULLS ALUMINIUM SPIN-OFF

Mining group Vedanta Resources has created plans to demerge its aluminium division. The 20 billion dollar division could be split from the company as early as this summer, with five other divisions of the company expected to be split off over the next few years. The demergers are designed to add shareholder value by simplifying the structure of the group. The majority owners of the group, the Argarwal family, are expected to retain controlling stakes in the newly created businesses while smaller portions are floated in Mumbai before subsequent listings in London or New York.

GREEN LAUNCHES 'COUTURE' TESCO

UK supermarket Tesco has announced plans to launch a "couture" range of clothing to be sold on the internet. The line of clothing, F&F Couture, will feature 16 items priced between £40 and £140 and is the first venture into high fashion by a UK supermarket. Terry Green, chief executive of Tesco's UK clothing operations, said: "This signifies a new era for supermarket fashion." Green recently announced that he is to stand down from Tesco clothing after five years, during which time sales at the division increased from 700 million pounds to over one billion pounds, representing just over 9 per cent of the market.

BOYCOTT THREAT BY SUPPLIERS TO BLACKS

Suppliers to outdoor and camping equipment retailer Blacks are threatening to boycott the company if it is taken over by retailer Sports Direct, which announced earlier this month that it was considering buying out other shareholders. Suppliers object to the takeover after Sports Direct took over sports retailer Field & Trek in 2007 only to see Field's turnover fall by 5 million pounds in its first year after the deal. Blacks has announced that it is planning to pursue an alternative fundraising manoeuvre that will not require the consent of Sports Direct, which has a 28 per cent holding in Blacks.

AEGIS TO PREDICT ADVERTISING UPTURN

Media and market research firm Aegis Group is expected to predict an industry-wide improvement in advertising and marketing sales. Aegis, which owns three advertising agencies, is likely to post full year pre-tax profits for 2009 of 137 million pounds, down from 167 million last year. Its revenue is expected to have increased slightly to 1.36 billion pounds. Aegis is expected to announce its cost cutting measures succeeded to the amount of 37 million pounds saved in the first nine months of 2009.
The Independent

SAINSBURY'S TO PAY BONUSES EARLY TO BEAT TAX INCREASE

Supermarket group J Sainsbury is to pay its bonuses early in order to avoid the 50 per cent rate of income tax on high earners, which will be introduced on April 6. Sainsbury's said that it was fairer that bonuses were taxed in accordance with the rates applied over the financial year in which the bonuses were earned. Bill Dodwell, a tax partner at Deloitte, suggested that such practices were being carried out across a number of companies, with some "pre-paying" a proportion of next year's salary to beat the tax change.

FIRMS NOT READY FOR DATA RULES, SAYS MWR

MWR InfoSecurity, a risk consultancy specialising in data protection, says that many employers are unaware of regulation to come into force April 6 that will see organisations fined up to 500,000 pounds for failing to properly protect personal data. MWR's Jonathan Care said that any organisation storing sensitive data could be subject to action by the Information Commissioner's Office, though the biggest fines would be imposed only in the most serious cases.

FSA RULES COULD FORCE MUTUALS OUT OF BUSINESS

MGM Advantage, one of Britain's leading mutual insurers, has warned that new Financial Services Authority regulations could damage the sector. Chief executive Chris Evans said that a change in FSA policy "will force many mutuals to either consider merging or closing to new business and going into run-off." Mutual insurers are suffering the effects of a retreat from "with-profits savings," but a letter from FSA head of retail John Pain made clear that mutuals will be prevented from writing non-profits business unless that they can prove that it will not harm existing with-profits policyholders.
The Times

BANK WARNS WEAK GROWTH COULD SPARK JOB LOSSES

The Bank of England has warned that the UK could see another surge in unemployment if the recovery in demand is slower than expected or more businesses are forced into liquidation. The Bank also suggested that misplaced optimism among workers could lead to redundancies as businesses seek to contain labour costs in the face of pressure for pay rises. Bank figures show that employment is down 1.9 per cent over the recent economic downturn, compared with a 3.4 per cent fall during the recession of the 1990s and 2.4 per cent in the early 1980s.

ONLINE MUSIC SALES OVERSHADOW CDS

According to figures from PRS for Music, the company that collects royalties for British songwriters, the growth in royalties of music sold via digital and online formats outpaced falling sales of CDs for the first time last year. PRS for Music announced an overall 2.6 per cent rise in annual revenue during 2009 to 623 million pounds and said the 12.8 million pound growth in digital music revenue last year had more than compensated for the 8.7 million loss in royalties from falling CD sales.

ASKING PRICES HIT BY SUDDEN INCREASE IN HOMES FOR SALE

A large increase in the number of people putting their home up for sale has reduced the traditional March increase in asking prices to its lowest recorded level. According to property website Rightmove, asking prices rose by 0.1 per cent this month compared with the average increase of 1.3 per cent. House prices traditionally rise in March after a slump during the winter. The average asking price has increased by 5.3 per cent since March 2009 and 3.7 per cent since the start of 2010.

COPYRIGHT

Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

The Daily Telegraph

VEDANTA MULLS ALUMINIUM SPIN-OFF

Mining group Vedanta Resources has created plans to demerge its aluminium division. The 20 billion dollar division could be split from the company as early as this summer, with five other divisions of the company expected to be split off over the next few years. The demergers are designed to add shareholder value by simplifying the structure of the group. The majority owners of the group, the Argarwal family, are expected to retain controlling stakes in the newly created businesses while smaller portions are floated in Mumbai before subsequent listings in London or New York.

GREEN LAUNCHES 'COUTURE' TESCO

UK supermarket Tesco has announced plans to launch a "couture" range of clothing to be sold on the internet. The line of clothing, F&F Couture, will feature 16 items priced between £40 and £140 and is the first venture into high fashion by a UK supermarket. Terry Green, chief executive of Tesco's UK clothing operations, said: "This signifies a new era for supermarket fashion." Green recently announced that he is to stand down from Tesco clothing after five years, during which time sales at the division increased from 700 million pounds to over one billion pounds, representing just over 9 per cent of the market.

BOYCOTT THREAT BY SUPPLIERS TO BLACKS

Suppliers to outdoor and camping equipment retailer Blacks are threatening to boycott the company if it is taken over by retailer Sports Direct, which announced earlier this month that it was considering buying out other shareholders. Suppliers object to the takeover after Sports Direct took over sports retailer Field & Trek in 2007 only to see Field's turnover fall by 5 million pounds in its first year after the deal. Blacks has announced that it is planning to pursue an alternative fundraising manoeuvre that will not require the consent of Sports Direct, which has a 28 per cent holding in Blacks.

AEGIS TO PREDICT ADVERTISING UPTURN

Media and market research firm Aegis Group is expected to predict an industry-wide improvement in advertising and marketing sales. Aegis, which owns three advertising agencies, is likely to post full year pre-tax profits for 2009 of 137 million pounds, down from 167 million last year. Its revenue is expected to have increased slightly to 1.36 billion pounds. Aegis is expected to announce its cost cutting measures succeeded to the amount of 37 million pounds saved in the first nine months of 2009.

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Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Financial Times

TESCO APPOINTS NEW CLOTHING CHIEF

Retailer Tesco is seeking to revive its one billion pound clothing business by replacing Terry Green with Richard Jones, former head of non-food at J Sainsbury, as chief executive. Tesco last year put its full 3,500-item clothing offer online amid intense competition with supermarket Asda's George collection. At the time, Green said his ambition was to knock Asda off the top spot to become the largest clothing retailer by volume of sales in the UK. Tesco is currently only the fourth biggest, behind Asda and retailers Primark and Marks and Spencer.

EMI MUSIC CHIEF LEONI-SCETI TO LEAVE AFTER 18 MONTHS

Record label EMI Music announced on Wednesday that chief executive Elio Leoni-Sceti will leave after just 18 months and before completing a rescue plan. Terra Firma, the private equity firm that owns EMI, has also appointed financial restructuring specialist David Frauman to the board of Maltby Investments, the vehicle it used to buy the music company. Leoni-Sceti will be replaced by former ITV chief executive Charles Allen on March 31. Speculation is also mounting that EMI could end up being sold to, or merged with, Warner Music.

BANKS TO RUN TOUGHER STRESS TESTS

UK banks are being ordered to run another round of stress tests to identify their sustainability during a possible double-dip recession. Regulators have ordered banks to plan for a worst case scenario, in which the economy shrinks by an additional 2.3 per cent from the end of last year. This would imply a total contraction of 8.1 per cent from the peak of the boom years. To pass, they must demonstrate their core tier one capital ratio would stay above four per cent.

EX-DEFENCE CHIEF CALLS FOR BIG CUTS IN EQUIPMENT PROCUREMENT

According to former defence chief General Lord Guthrie, the UK needs to ruthlessly prioritise its procurement of defence equipment because large cuts to its budget are the only realistic choice. Guthrie, chief of the defence staff in 1997-2001, says the government must consider cutting "nice-to-have" but "non-essential" programmes. These include the 20 billion pound Trident upgrade, two new aircraft carriers and fast jets.

The government is trying to reverse part of a proposed increase in fees for vessels visiting British ports, after identifying ways of reducing the cost of running lighthouses. Shipping groups have attacked the proposed cut as being too small to make a significant difference. There was a large increase in fees last year.

TULLETT PREBON IN DISCUSSIONS WITH 'THIRD PARTY'

Tullett Prebon has revealed it is in "preliminary discussions with a third party" in a deal that could value the interdealer broker's equity at 840 million pounds. According to some analysts, Tullett might be attractive to exchange groups, such as Deutsche Borse and LSE, private equity or rivals keen to expand in the over-the-counter derivatives market. After the disclosure, the FTSE 250 company's shares rocketed 25.7 per cent to 390 pence.

F&C EAGER FOR FURTHER PURCHASES

F&C Asset Management has announced it is seeking further deals on top of a proposal to acquire quantitative fund specialist C-Quadrat for 49 million pounds. Chief executive Alain Grisay underlined the group's desire to expand, saying: "We are looking at talent and teams." On Wednesday, the group reported a dip in assets under management to 97.8 billion pounds in calendar 2009. F&C blamed the decline, which occurred amid a rise in markets in the second half of 2009, on the weakness of sterling.

Chime Communications was helped by its popular "compare the meerkat" campaign to become one of the few marketing services groups to increase like-for-like revenue last year. Reporting results for 2009, chief executive Chris Satterthwaite announced revenue increased eight per cent to 300.9 million pounds. Pre-tax profits increased 13.6 per cent to 18.6 million pounds. Satterthwaite said that VCCP, a Chime agency, was "undoubtedly" boosted by the popularity of its meerkat-led campaign for Comparethemarket.com, the insurance website. Its shares closed six per cent lower at 209 pence.

INCHCAPE SLASHES DEBT BUT MAINTAINS CAUTIOUS OUTLOOK

Reporting results for 2009, Inchcape revealed the international car dealership ended the year with net cash of 800,000 pounds against net debt of 408 million pounds at the start of the year. The lift was boosted by a 234.3 million pound rights issue in April. But the company, which was also helped by government scrappage schemes, has cautioned that fear of unemployment and weak consumer confidence would drag on sales in key markets. Its shares fell four per cent to 28.26 pence.

TANFIELD TO SELL ZERO-EMISSION VEHICLE OPERATION

Aim-listed Tanfield is set to sell its electric car business to Smith Electric Vehicles US Corporation, with which it formed a joint venture last year to expand into the US market, for 37 million pounds in cash. Last year, Tanfield announced it would receive 1.6 million pounds of funding from the government's Technology Strategy Board as part of a consortium developing electric passenger vehicles. The group expects to report annual results next month. Its shares jumped 46 per cent to 41.5 pence.
Keywords: PRESS DIGEST Financial Times =3

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Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.