(HTG.L) Hunting PLC Buy/Sell

The Times

LOVELLS IN MERGER TALKS WITH LEADING US LEGAL FIRM

Lovells is in merger talks with Hogan & Hartson, a leading American group, in what would be the biggest tie-up in the legal sector in years. A deal would create a law firm with 1.8 billion dollars in revenue and 2,500 lawyers and would see it become the world's ninth largest law firm, just behind Allen & Overy. Other mergers are expected as the legal market begins to consolidate. Law firm mergers are difficult, however, especially if they occur between firms on different sides of the Atlantic.

BRITANNIA DEALS BLOW TO FIRST-TIME HOUSEBUYERS

Britannia will no longer offer home loans to borrowers with a ten per cent deposit, the mortgages popular among first-time buyers, leaving only a handful of lenders still willing to offer such loans. Over the past three months Britannia has offered one out of every ten mortgages requiring a ten per cent deposit, lending 300 million pounds to almost a thousand first-time buyers. Mortgage brokers have lamented the failure of banks to reduce rates for struggling first-time buyers and it is feared that less competition could push up borrowing costs further.

CARLUCCIO'S HAS PLANS TO SERVE UP MORE OUTLETS THROUGHOUT

THE UK AND IN DUBAI

Carluccio's is looking for its first sites in Scotland as it seeks to become a nationwide chain. The quoted operator of Italian restaurants with their own in-store delicatessen issued a bullish trading update on Thursday, reporting an eight per cent rise in turnover in the year to September 28 despite a "challenging year for the economy as a whole". As well as expanding in the UK, where Carluccio's opens about five stores a year, it has two overseas franchises.

TEMPUS

Cable & Wireless (Hold)

Rank Group (Solid hold)

Hunting (Buy)
Daily Telegraph

RELAX, YOUR SHARES ARE SUSPENDED

The debt management company Relax Group has asked for trading in its shares to be suspended whilst it attempts to seek further equity funding to pay off its debts. The company now owes creditors 4.1 million pounds and its interim results show that it has made a loss of 2.5 million pounds. Relax describes itself as a "leading provider of consumer debt-related solutions" but, to the amusement of many, now faces an uncertain future due to its own faulty debt management.

HEDGE FUND STAFF SHARE 30 MILLION POUND PAYOUT

Thirty-three senior employees of the hedge fund NewSmith Capital Partners were paid a combined total of 29.4 million pounds last year. Despite difficulties resulting in the value of NewSmith's listed and private equity investments falling by seven million pounds, most of its five funds turned a profit over the last 12 months. "Given what happened last year, I felt the performance held up well" remarked Michael Marks, co-founder of the hedge fund.

JJB TO TAP INVESTORS FOR UP TO 70 MILLION POUNDS

The beleaguered sportswear retailer JJB Sports is set to launch a rights issue of up to 70 million pounds. Analysts previously expected the cash call to aim at raising 50 million pounds but it is thought that the company decided on the higher figure after a positive response from shareholders. The shares are likely to be offered at a steep discount with JJB wishing to pay off as much debt as possible in light of falling sales at the group.

QUESTOR

Ladbrokes ("Take up your rights")

Hochschild (Buy)
The Independent

STAYCATIONS DRIVE CYCLE SALES AT RETAILER HALFORDS

Bicycle retailer Halfords expects pre-tax profits to strengthen by a fifth this year to around 60 million pounds due to a rise in the sales of bike and car accessories. The trend is closely linked to an increase in the number of Britons who chose to holiday at home rather than abroad. Chief executive David Wild cited particularly strong sales of bikes developed by Olympic champion Chris Boardman, while products such as car roof boxes and tents also sold well. Total half-year sales were up 2.8 per cent when adjusted for the impact of Easter. Like-for-like sales rose 1.1 per cent.

LLOYDS STILL SHORT OF OFFICIAL APPROVAL FOR GIANT CASH CALL

Lloyds Banking Group has yet to secure the support of the UK Government or Financial Services Authority for its planned 15 billion pound rights issue. It is believed that the FSA will allow no "wiggle room" on its requirement that a bank should hold tier one capital of four per cent in a stressed situation. Lloyds may seek to bolster this safety net through asset disposals with Scottish Widows seen as a likely candidate for a sale. Lloyds hopes that a capital raising would help the bank avoid involvement in the Government's asset protection scheme.

SEYMOUR PIERCE FINED AFTER EMPLOYEE STOLE 154,000 POUNDS

Stockbroker Seymour Pierce was fined 154,000 pounds on Thursday after the Financial Services Authority ruled that weak controls had allowed the theft of around 150,000 pounds by a Seymour Pierce employee to go "completely undetected". The money was stolen from internal and private client accounts in 36 separate transactions over a three-year period. The fine levied by the FSA was reduced from 220,000 pounds because Seymour Pierce co-operated with the investigation.

INVESTMENT COLUMN

Ted Baker

C&C Group

Carluccio's
The Guardian

PUNTERS ONE, LADBROKES NIL AFTER START OF SEASON SEES PROFIT

FALL

In a profit warning statement to investors, Ladbrokes reported that the amount of money taken in its betting shops, excluding touch screen roulette machines, has fallen by 22 per cent for the three months to September 30. The bookmaker also announced a suspension of dividend payments, a group-wide pay freeze and confirmed a plan to raise 275 million pounds through the issue of 300 million new shares. The shares will be offered to existing investors at 95 pence per share, a 48 per cent discount on Wednesday's closing price. Proceeds from the rights issue will be used to reduce the company's net debt which reached 962 million pounds at the end of June this year.

DEFECTIONS FROM BRITISH LAND SIGNAL RETURN OF PROPERTY

MOGULS

According to analysts the upcoming departure of Andrew Jones, a main board director at British Land, and that of two of his senior colleagues, Valentine Beresford and Mark Stirling, to start a new venture along with a wave of recent senior defectors from the property company is a sign that a new generation of property moguls is about to be created. According to analyst suggestions, Jones and his colleagues have been frustrated at the company's inability to raise sufficient funds to take advantage of falling property prices and rebuild property portfolios.

BA UNDER INVESTIGATION IN US OVER 40 DOLLAR PASSAGE TO INDIA

The US Department of Transportation's consumer protection division is investigating an error by British Airways which allowed thousands of passengers to book airline tickets between US cities and the Indian subcontinent for a fare of just 40 dollars. The department is investigating complaints after BA said that it will not honour the tickets and is cancelling all affected bookings. A spokeswoman for the airline said: "This was an error in the system and we're investigating how the error occurred". Charlie Leocha, director of the Consumer Travel Alliance said that airlines usually exhibit no sympathy when mistakes occur the other way round. "They will hold our feet for even the tiniest of mistakes, even if passengers call immediately" she said.

Prepared for Reuters by Durrants
Keywords: PRESS DIGEST British Business =4

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