(BT-A.L) BT Group PLC Buy/Sell

LONDON, Nov 19 (Reuters) - Eurohypo has arranged a 340 million pounds ($567 million) club financing deal for UK property outsourcing company Telereal Trillium in a sign specialist lenders are returning to the credit-starved sector.
The facility has been provided by three other banks besides Eurohypo -- Lloyds, Barclays and Santander -- and refinances an existing loan Telereal Trillium drew down to help fund the purchase of Trillium from Land Securities in January.
Deal terms are being kept confidential, a Eurohypo spokesman told Reuters.
Telereal Trillium manages real estate occupied by local and central government departments, including Royal Mail, the Department of Work and Pensions, and private sector occupiers such as BT, Aviva and Royal Bank of Scotland .

"This financing has been tailored to meet the specific requirements of Telereal Trillium and reflects the strength of the management and underlying income stream from these core assets," said Eurohypo's director of origination. "It also clearly demonstrates Eurohypo's ongoing commitment to new lending in the UK, meeting the requirements of professional investors," he said.

(Reporting by Sinead Cruise; Editing by Andrew Macdonald)

($1=.6002 Pound)

(See www.reutersrealestate.com for the global service for real estate professionals from Reuters) Keywords: EUROHYPO TELEREAL/ (sinead.cruise@thomsonreuters.com; +44 (0)207 542 5154; Reuters Messaging: sinead.cruise.reuters.com@reuters.net)

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RNS Number : 7663C BT Group PLC 19 November 2009 TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

1. Identity of the issuer or the underlying issuer BT Group Plc

of existing shares to which voting rights are attached:

2. Reason for the notification (please tick the appropriate box or boxes):
An acquisition or disposal of voting rights Yes

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached.

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to the Legal & General Group Plc (L&G)

notification obligation:
4. Full name of shareholder(s) Legal & General Assurance (Pensions Management) Limited
(if different from 3.): (PMC)
17 November 2009

5. Date of the transaction and date on which the threshold is crossed or reached:

6. Date on which issuer notified: 18 November 2009
7. Threshold(s) that is/are crossed or From 4% - 3% (L&G)

reached:

8. Notified details:

A: Voting rights attached to shares
Class/type of Situation previous Resulting situation after the triggering transaction
shares to the triggering
transaction

if possible using the ISIN CODE
Number Number Number of voting % of voting rights
of of Number rights
Shares Voting of shares
Rights
Direct Indirect Direct Indirect
ORD 363,308,604 363,308,604 309,597,603 309,597,603 3.99

GBP 0.05

B: Qualifying Financial Instruments Resulting situation after the triggering transaction
Number of voting
Type of financial Expiration Exercise/ rights that may be % of voting
instrument date Conversion Period acquired if the rights
instrument is
exercised/ converted.

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments Resulting situation after the triggering transaction

Type of financial Exercise price Expiration date Exercise/ Number of voting rights instrument refers to % of voting rights
instrument Conversion period
Nominal Delta

Total (A+B+C)
Number of voting rights Percentage of voting rights
309,597,603 3.99

9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable: Legal & General Group Plc (Direct and Indirect) (Group) Legal & General Investment Management (Holdings) Limited (LGIMH) (Direct and Indirect) Legal & General Investment Management Limited (Indirect) (LGIM) Legal & General Group Plc (Direct) (L&G) (309,597,603 -3.99 % = LGAS, LGPL
& PMC)
Legal & General Investment Legal & General Insurance Holdings Limited

Management (Holdings) Limited (Direct) (LGIH) (Direct) (LGIMHD) (282,347,910 -3.64 % = PMC)
Legal & General Assurance Legal & General Assurance Society Limited
(Pensions Management) Limited (LGAS & LGPL)

(PMC) (282,347,910 -3.64 % =

Legal & General Pensions Limited (Direct)

Proxy Voting:
10. Name of the proxy holder:

11. Number of voting rights proxy holder will cease

to hold:

12. Date on which proxy holder will cease to hold

voting rights:

13. Additional information:
Notification using the total voting rights figure of 7,752,033,835
14. Contact name:
Helen Lewis (LGIM)
15. Contact telephone number:

This information is provided by RNS The company news service from the London Stock Exchange

HOLFFFFSUSUSEEF

By Kate Holton

LONDON, Nov 17 (Reuters) - Britain's Cable & Wireless is tapping the loan and bond market for refinancing and looking to tie in its well respected management team as part of an accelerated demerger designed to unlock value for shareholders. C&W will spin off its Worldwide unit, which offers business communications across Europe, Asia and the United States, and retain its International division providing fixed-line and mobile services in the Caribbean, Macau, Panama and elsewhere.
C&W, which put its demerger plan on hold a year ago due to difficult market conditions, said the demerger would create two companies listed on the London Stock Exchange.
The group has said there are few synergies between the two units and a demerger, to be completed by the end of March, should unlock value.
Shareholders will receive one share in each new company for each share that they hold.
Analysts welcomed the timing of the demerger and the move to retain senior management.
Citi said in a note the news marked a big step forward, and that a 20 pence discount it considered was priced into the C&W share on structural grounds could now start to unwind.
But analysts cautioned over comments that the group was still in talks with its pension trustees and said the use of a convertible bond as part of the refinancing could result in a dilution for shareholders.
"The positive is that the timing is relatively fast," Morgan Stanley analyst Nick Delfas said. "(But) the demerger does not in itself create value, and unanswered questions about the pension remain."
Shares in the group, which has a history dating back to the 1860s when telegraph cables were first laid overseas from Britain, closed up 1.7 percent at 142 pence against a FTSE 100 that ended down 0.7 percent.

C&W plans to put in place around 1.1 billion pounds ($1.85 billion) of new and replacement cash and bank credit lines to ensure the separation.
As part of that refinancing, Britain's second-biggest corporate telecoms provider after BT will also raise 230 million pounds through a five-year convertible bond, which people close to the deal said had attracted "a couple of billion pounds" of investor demand.
The company said the coupon was 5.75 percent per year and the conversion price was set at 184.1 pence per share, representing a 33 percent premium.
To settle its pension issue, it has held talks with the scheme's trustees and is looking to reach agreement on any additional funding that is needed.
C&W said its pension fund had an IAS 19 deficit of 305 million pounds at the end of September. Finance Director Tim Pennington told analysts on a call the firm would likely pay in a bit more than the already agreed 75 million to be paid between now and April 2011.
In terms of pension assets and liabilities, it expected around half would be transferred to Worldwide, with the other half remaining with International.
The group also set out changes to its incentive scheme for senior management, subject to shareholder and participant approval.
Under the new plan the incentive scheme would not vest on the demerger as had been expected but continue to run until the end of the 2011 financial year, which analysts interpreted as a way of tying in the team.
C&W said Richard Lapthorne and Tony Rice would take up the roles of chairman and chief executive respectively at International while John Pluthero and Jim Marsh would be Worldwide chairman and CEO respectively.
"I like the amount of detail in the statement. It's very thorough but the pensions talks and the convertible bond are negatives," Execution analyst Will Draper said.
(Additional reporting by Daisy Ku; Editing by Hans Peters, John Stonestreet)

($1 = 0.5958 pound) Keywords: CABLE&WIRELESS/ (kate.holton@reuters.com; +44 207 542 8560; Reuters Messaging:kate.holton.reuters.com@reuters.net)

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By Kate Holton

LONDON, Nov 17 (Reuters) - Britain's Cable & Wireless is tapping the bond market for refinancing and tying in its well-respected management team as part of an accelerated demerger designed to unlock value for shareholders. C&W will spin off its Worldwide unit, which offers business communications across Europe, Asia and the United States, and retain its International division providing fixed-line and mobile services in the Caribbean, Macau, Panama and elsewhere.
C&W, which put its demerger plan on hold a year ago due to difficult markets, said the demerger would create two companies listed on the London Stock Exchange.
The group has said there are few synergies between the two units and a demerger, to be completed by next April, should unlock value.
Shareholders will receive one share in each new company for each share that they hold.
Analysts welcomed the timing of the demerger and the move to retain senior management but noted with caution a comment that the group was still in talks with its pension trustees.
Analysts also noted the use of a convertible bond as part of the refinancing could result in a dilution for shareholders.
"The positive is that the timing is relatively fast," Morgan Stanley analyst Nick Delfas said. "(But) the demerger does not in itself create value, and unanswered questions about the pension remain."
Shares in the group, which has a history dating back to the 1860s when telegraph cables were first laid overseas from Britain, were up 2.2 percent at 1127 GMT against a FTSE 100 down 0.4 percent.

C&W plans to put in place around 1.1 billion pounds ($1.85 billion) of new and replacement cash and bank credit lines to ensure the separation.

As part of that refinancing, Britain's second-biggest corporate telecoms provider after BT will also raise 200 million pounds through a convertible bond, which has been "heavily oversubscribed" according to people familiar with the deal.
To settle its pension issue, it has held talks with the scheme trustees and is looking to reach agreement on any additional funding that is needed.
C&W said its pension fund had an IAS 19 deficit of 305 million pounds at the end of September.
Finance Director Tim Pennington told analysts on a call they would likely pay a bit more than the already agreed 75 million to be paid between now and April 2011.
In terms of pension assets and liabilities, it expected around half would be transferred to Worldwide, with the other half remaining with International.
The group also set out changes to its incentive scheme for senior management, subject to shareholder and participant approval.
Under the new plan the incentive scheme would not vest on the demerger as had been expected but continue to run until the end of the financial year 2011, which analysts interpreted as a way of tying in the team.
C&W said Richard Lapthorne and Tony Rice would take up the roles of chairman and chief executive respectively at International while John Pluthero and Jim Marsh would be Worldwide chairman and CEO respectively.
"I like the amount of detail in the statement. It's very thorough but the pensions talks and the convertible bond are negatives," Execution analyst Will Draper said.

(Additional reporting by Daisy Ku; Editing by Hans Peters)

($1 = 0.5958 pound) Keywords: CABLE&WIRELESS/ (kate.holton@reuters.com; +44 207 542 8560; Reuters Messaging:kate.holton.reuters.com@reuters.net)

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LONDON, Nov 17 (Reuters) - British telecoms group Cable & Wireless (C&W) has narrowed the guidance on its 200 million pounds ($336 million) of convertible bonds due to strong investor demand, sources familiar with the matter said.
C&W, Britain's second-biggest corporate telecoms provider after BT, narrowed the bonds' coupon range to 5.75 to 6 percent on Tuesday from previous guidance of 6 to 6.75 percent.
The conversion premium guidance was set at 33 percent, against a previous range of 28 to 33 percent. The deal was "strongly oversubscribed", the sources said.
Traders expect the deal to be priced at 5.75 percent.
In the grey market, investors were already trading the bonds at 102.5 to 103 percent of face value, meaning they will get a return of 2.5 percent to 3 percent.
Barclays, BNP Paribas and RBS Hoare Govett are the bookrunners.
($1=.5958 Pound)
(For more on C&W's demerger plans, click)
(Reporting by Daisy Ku) Keywords: C&W/CB

(daisy.ku@thomsonreuters.com; +44 207 542 5106; Reuters Messaging: daisy.ku.reuters.com@reuters.net)

COPYRIGHT

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By Kate Holton

LONDON, Nov 17 (Reuters) - British telecoms group Cable & Wireless (C&W) is to tap the bond market to fund its demerger by April next year, it said on Tuesday as it laid out plans to tie in senior management and for a pension agreement.
Under the plan, C&W will demerge the Worldwide unit, which offers business communications across Europe, Asia and the United States, to leave the International division to provide fixed-line and mobile services in Caribbean, Macau, Panama and others.
Cable & Wireless, which put on hold its demerger plans a year ago due to the difficult market conditions, said it plans to put in place around 1.1 billion pounds of new and replacement cash and bank credit lines to ensure the separation.
As part of that refinancing, Britain's second-biggest corporate telecoms provider after BT will also raise 200 million pounds ($336.6 million) through a convertible bond.
Analysts welcomed the amount of detail about the plan, after the company failed to give much information at their recent first half results, but said the fact the group was still holding talks with the pension regulator was a risk.
C&W said its pension fund had an IAS 19 deficit of 305 million pounds at the end of September. It is in talks with the scheme trustees and is looking to reach agreement on any additional funding that is needed.
It expects that approximately half the pension assets and liabilities will be transferred to Worldwide, with the other half remaining with International.
Analysts also questioned why the group had opted for a convertible bond, saying it would cause a dilution, but welcomed the handling of the management incentive scheme which should tie the senior executives into the company for the longer term.
The group said that, subject to shareholder and participant approval, the incentive scheme for the senior management would not vest on the demerger as had been expected but continue to run until the end of the financial year 2011.
C&W said Richard Lapthorne and Tony Rice would take up the roles of chairman and chief executive respectively at International while John Pluthero and Jim Marsh would be chairman and CEO of Worldwide respectively.
Execution analyst Will Draper said postponing the vesting date could also benefit the management even further as either unit could be seen as a possible takeover target, lifting its new shares, once it has demerged.
"I like the amount of detail in the statement, it's very thorough but the pensions talks and the convertible bond are negatives," Draper told Reuters.
Analysts at Cazenove welcomed the expected completion date and incentive scheme changes and said management must be confident they can reach an agreement on the pension payments.
Shares in the group, which has a history dating back to the 1860s when telegraph cables were first laid overseas from Britain, were up 3.83 percent at 0936 GMT against a FTSE 100 down 0.4 percent.

($1=.5941 Pound)

(Reporting by Kate Holton; Editing by Hans Peters) Keywords: CABLE&WIRELESS/ (kate.holton@reuters.com; +44 207 542 8560; Reuters Messaging:kate.holton.reuters.com@reuters.net)

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RNS Number : 4826C BT Group PLC 13 November 2009

Friday 13 November 2009

BT GROUP PLC

TRANSACTION IN OWN SHARES - VOTING RIGHTS AND CAPITAL

BT Group plc announces that it has today transferred in connection with its employee share plans 6,908 ordinary shares at nil cost. The transferred shares were all formerly held as treasury shares.

BT Group plc's capital consists of 8,151,227,029 ordinary shares with voting rights. Following the above transfer, BT Group plc holds 399,193,194 ordinary shares as treasury shares. Therefore, the total number of voting rights in BT Group plc is 7,752,033,835

The above figure (7,752,033,835) may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, BT Group plc under the FSA's Disclosure and Transparency Rules.

= ends =

This information is provided by RNS The company news service from the London Stock Exchange

POSZGMMMMFRGLZM

PAY GAP FOR WOMEN NARROWS TO 22 PERCENT

Figures published by the Office for National Statistics show the gender pay gap in Britain narrowed by 0.5 percentage points to 22 percent last year. The pay gap for the public sector narrowed by one point to 21 percent, but in the private sector it increased by 0.7 points, leaving women being paid an average of 28.8 percent less than men. Harriet Harman, minister for women and equality, said she welcomed the overall narrowing but insisted it was "disappointing to see the private sector fall even further behind the public sector."

RED TAPE DELAYS NEW COMPANIES

The Conservative Party has accused the government of making a "complete mess" of the implementation of the Company Act 2006 after it was revealed that thousands of new start-up companies are witnessing a delay in their applications. John Penrose, the shadow business minister said: "It's appalling that with so many businesses going bust every single day the government is making it so much harder for new ones to start up". In response to the accusation, Ian Lucas, the business minister, said the delays are down to "data processing issues, customer and staff lack of familiarity with new requirements, and initial issues with system performance."

MYNERS BACKS INSURERS OVER EU CAPITAL RULES

Lord Myners, the City minister, is calling for the government to renegotiate proposed EU regulation in order to protect the rights of British pensioners. Speaking at the Association of British Insurers on Thursday, Myners said: "The government has a social duty to the pensioners and future pensioners of the UK, and the industry has a robust technical basis for its concerns." The EU's Solvency II rules, due to take effect in 2012, are intended to set the capital requirements of insurers at a uniform rate, but the industry fears that complicated changes to annuity rates will discourage people from saving.

COSTS CUTS BOOST BT'S EARNINGS BUT PENSION DEFICIT CASTS

SHADOW

BT reported better than expected results, which it credited to an aggressive cost cutting strategy. However, the growing pension deficit is likely to overshadow the company's claims that it has made significant progress towards a turnaround. BT is Britain's market leader in fixed-line phones but it also has the largest defined benefit scheme. It is thought a legal move by BT pension trustees to gain clarity on the scope of the "crown guarantee" could help the telecommunications company to lower its top-up payments to the pension scheme.

RESURGENT STOCK MARKETS HELP 3I BOUNCE BACK

Private equity firm 3i reported a return of 81 million pounds in the six months to September on Thursday, after posting a record 2.15 billion pound loss in the year to March. The group's portfolio was boosted by recovering equity markets but the effect was offset by falling earnings, weaker sterling and a pension charge. 3i shares have more than doubled in value from their March lows and investors reacted to Thursday's news by taking profits. Shares fell 11.4 pence to close trading at 267.5 pence.

BA AND IBERIA PREPARE FOR LANDING ON MERGER

Despite questions over synergies and savings, the proposed merger of British Airways and Spanish carrier Iberia looks set to go ahead. Shares in both airlines leapt in Thursday's trading as investors anticipated the tie-up. The trend towards consolidation has long been a feature of an airline industry overburdened with capacity and the recession has made the case even more pressing, but analysts question whether the current economic climate will see the proposed deal achieve the same synergies enjoyed by previous mergers.

DANISH FRONTAGE -- DEBENHAMS STEPS INTO MAINLAND EUROPE

Debenhams has agreed the acquisition of leading Danish department store chain Magasin du Nord in a 12.3 million pound deal. Analysts said that the acquisition -- Debenhams' first in mainland Europe -- would be earnings neutral in year one, but would contribute around eight million pounds in the second year. Debenhams has been seeking opportunistic buys since June's 323 million pound fund raising.

WAITROSE CLAIMS SALES BOOST FROM M&S ADS

Showing its strongest sales results for three years Waitrose will report on Friday that total sales rose by 17.1 per cent in the week to Nov. 7, compared with the previous year. A report available on the supermarket chain's website concludes that sales received a boost from M&S's ad campaign featuring a comparison of prices. Richard Hodgson, commercial director, said: "Maybe we should be thanking the M&S marketing department for highlighting both the quality and value of our Essential Waitrose range in their high-profile advertising."

TRINITY MIRROR SANGUINE DESPITE REGIONALS' PAIN

Newspaper publisher Trinity Mirror said it has experienced an "improvement in the rate of decline in revenues" despite the economic downturn resulting in one of its flagship daily newspapers relaunching as a weekly. Meanwhile, regional newspapers, which were traditionally more profitable than national titles, have fared worse with advertising sales for regionals tumbling by 32 percent in the year to date, while national advertising sales dropped by only 11 percent. Regional titles are not expected to see profitability return to pre-recession levels but Trinity told analysts that group margins could recover by 1-2 percent.

BRIDGES VENTURES DIPS TOE INTO ETHICAL PROPERTY

Bridges Ventures has signalled a move to develop its interests in ethical property.

The social investing venture capital firm has completed the first round of fundraising for a new investment vehicle which will buy property benefiting either the environment or society. Michele Giddens, executive director of Bridges Ventures, said: "This builds off Bridges Ventures' experience in regeneration. We are excited about the potential for this fund to combine highly attractive financial returns for investors with the important social and environmental impacts."

Prepared for Reuters by Durrants

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BT GROUP SHARES SEEN OPENING ABOUT 5 PCT HIGHER AFTER Q2 EARNINGS BEATS FORECASTS - TRADERS

For related news double-click on

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RNS Number : 3830C
  BT Group PLC
  12 November 2009
   

                

        12 November 2009

BT GROUP PLC

RESULTS FOR THE SECOND QUARTER AND HALF YEAR TO 30 SEPTEMBER 2009 

Key points for the second quarter:

*     Revenue1 of £5,122m, down 3%, or 6% excluding foreign exchange movements and acquisitions

*     Adjusted EBITDA1 of £1,436m, up 2% reflecting progress in all lines of business

*     Continued improvement in BT Global Services with adjusted EBITDA1 of £95m, up 53% on the first quarter

*     Adjusted earnings per share1 of 4.5p, down 8%, reported earnings per share of 5.5p, up 12%

*     Free cash flow of £705m, up £336m including a tax repayment and associated interest of £226m 

*     Net debt4 reduced to £9.9bn

*     Total underlying costs2 down £932m in the half year

*     Interim dividend of 2.3p per share  

    
 2009/10 Outlook:                                                             
  
                                                     Previous              New
 · Revenue1decline                                      4%-5%            3%-4%
 · Capital expenditure                               c.£2.7bn         c.£2.6bn
 · Total underlying cost2reductions            well over £1bn  at least £1.5bn
 · Free cash flow3                                  over £1bn  at least £1.6bn
 · Net debt4                                                -      below £10bn
 · Full year dividend                                       -          up c.5%

Ian Livingston, Chief Executive, commenting on the results, said:
*We have had another quarter of progress but there remains a lot more to do. With total cost2 reductions of over £900m in the first half, we have made significant headway towards our previous target of well over £1bn for the full year. We now expect to generate at least £1.6bn of free cash flow3 this year, compared with our previous target of over £1bn. 

"We are investing in the future of the business with an enhanced and accelerated programme of fibre deployment and wider roll out of faster broadband speeds, all within our capital expenditure plans.

"Given our operational performance, we expect to increase dividends by around 5% for the full year.  The Board is declaring an interim dividend of 2.3p per share."

1 Before specific items, leaver costs and net interest on pensions.  

2 Underlying operating costs and capital expenditure.

3 Before gross pension deficit payments of £525m, but after cash costs of BT Global Services restructuring.

4Net debt is defined in Note 12.

RESULTS FOR THE SECOND QUARTER AND HALF YEAR TO 30 SEPTEMBER 2009

Group results
                      Second quarter to 30 September         Half year to 30 September
                        2009         20081    Change           2009      20081      Change
                          £m            £m         %             £m         £m           %
 Revenue2              5,122         5,303       (3)         10,357     10,480         (1)
 EBITDA                                     
 - adjusted2           1,436        1,407          2          2,807      2,824         (1)
 - reported            1,309        1,333        (2)          2,594      2,650         (2)
 Operating profit                           
 - adjusted2             677          722        (6)          1,310      1,448        (10)
 - reported              550          648       (15)          1,097      1,274        (14)
 Profit before tax                          
 - adjusted2             461          490        (6)            888      1,009        (12)
 - reported              275          494       (44)            547        991        (45)
 Earnings per share                         
 - adjusted2            4.5p          4.9p       (8)           8.8p       10.0p       (12)
 - reported             5.5p          4.9p        12           8.3p        9.8p       (15)
 Interim dividend          -             -         -           2.3p        5.4p       (57)
 Capital expenditure     558           766      (27)          1,117       1,568       (29)
 Free cash flow          705           369        91            583       (365)        n/m
 Net debt                  -             -         -          9,878      11,028       (10)

Line of business results 
                                      Revenue2  Change1  EBITDA2  Change1 
 Second quarter to 30 September 2009        £m        %       £m        % 
 BT Global Services                      2,024      (3)       95      (10)
 BT Retail                               2,062      (5)      475        11
 BT Wholesale                            1,125      (4)      328         1
 Openreach                               1,285      (1)      507         4
 Other                                      10      n/m       31      (48)
 Intra-group items                     (1,384)        5        -         -
 Total                                   5,122      (3)    1,436         2

1   Restated - see Note 1 for details.
      2  Before specific items, leaver costs and net interest on pensions.

Notes:

Unless otherwise stated, any reference to earnings before interest, tax, depreciation and amortisation (EBITDA), operating profit, and operating costs is measured before specific items and leaver costs. In addition, adjusted profit before tax and adjusted earnings per share (EPS) are also shown before net interest on pensions due to the volatile nature of this item (see Notes 9 and 10). Unless otherwise stated, the change in results is year on year. Reported EBITDA, reported operating profit, reported profit before tax and reported EPS are the equivalent unadjusted or statutory measures. 

Underlying revenue, underlying operating costs, underlying EBITDA and underlying capital expenditure refer to the measure excluding foreign exchange rate movements and acquisitions. Underlying revenue and operating costs are also stated before specific items, leaver costs and depreciation and amortisation.

The commentary focuses on the trading results before specific items and leaver costs. This is consistent with the way that financial performance is measured by management and we believe allows a meaningful analysis to be made of the trading results of the group. Specific items are defined in Note 5. 

The income statement, cash flow statement and balance sheet are provided on pages 12 to 16. A reconciliation of group operating profit to EBITDA (as defined above) is provided in Note 8. A reconciliation of reported profit before tax (as defined above) to adjusted profit before tax is provided in Note 9. A reconciliation of reported EPS to adjusted EPS is provided in Note 10. A definition and reconciliation of free cash flow and net debt are provided In Notes 11 and 12. 

The line of business commentaries also discuss operating cash flow before specific items and leaver costs. Operating cash flow is defined as EBITDA less direct and allocated capital expenditure (net of capital accrual movements), working capital movements and movements in provisions and other non-cash items.

For the avoidance of doubt all page and note references refer to the full results release for the second quarter and half year to 30 September 2009.

      Enquiries
 Press office:
 Peter Morgan/Ross Cook  Tel: 020 7356 5369

 Investor relations:
 Catherine Nash          Tel: 020 7356 4909

A presentation for analysts and investors will be held in London at 9.00am today and a simultaneous webcast will be available at www.bt.com/results. 

Results for the third quarter to 31 December 2009 are expected to be announced on 11 February 2010.

About BT

BT is one of the world's leading providers of communications solutions and services operating in 170 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to our customers for use at home, at work and on the move; broadband and internet products and services and converged fixed/mobile products and services. BT consists principally of four lines of business: BT Global Services, BT Retail, BT Wholesale and Openreach.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.

For more information, visit www.btplc.com

Click on, or paste the following link into your web browser, to view the associated PDF document:

http://www.rns-pdf.londonstockexchange.com/rns/3830C_-2009-11-11.pdf

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
IR MGMMMGMMGLZZ

The Times

BMI STRUGGLES TO GET SALE OF LANDING SLOTS OFF THE GROUND

British Midland could struggle to raise the 95 million pounds needed to keep flying due to a lack of potential buyers for its landing slots at Heathrow. The slots normally change hands for tens of millions of dollars each, but many of the world's top airlines, including British Airways and Virgin Atlantic, are not interested. Speculation from analysts points to possible interest from an Asian carrier, but only at a bargain price. BMI needs to raise 190 million pounds by the end of October 2010 in order to survive.

RUSH TO SWAP DEBT FOR EQUITY PROMPTS LLOYDS TO CONSIDER

RAISING 1.5 BILLION MORE

Lloyds Banking Group said it may increase its capital-raising by 1.5 billion pounds due to a high level of interest from investors. The increase to 22.5 billion pounds would see investors converting their tier 1 and tier 2 debt into new "contingent capital", a move that analysts estimate will cost the bank between 100 and 300 million pounds extra a year to pay the coupon. Lloyds is still targeting 13.5 billion pounds through a conventional rights issue that will be priced on Nov. 24.

REGULATOR COULD FORCE BT'S RIVALS TO HELP CARRY BURDEN OF

ITS SIX BILLION POUND PENSION DEFICIT

Ofcom is to carry out an investigation into British Telecom's pensions costs to see if it should take them into account when billing rivals to use its network. If the move is approved the costs could be passed on to customers of groups such as Carphone Warehouse and Cable & Wireless. BT will release second-quarter figures on Thursday that are expected to show its pension deficit has narrowed to about six billion pounds, from eight billion pounds in June. Profits for the three months to September 30 are expected to fall to 236 million pounds

.

The Daily Telegraph

MORE THAN 100 JOBS TO GO AT GUARDIAN

Guardian Media Group, which owns The Guardian and The Observer newspapers, has announced a review encompassing "more than 100" job cuts. Alan Rusbridger, the Guardian's editor-in-chief, told staff on Wednesday that "nine out of 10 people will still be here at the end of the review", but that cuts needed to be made. The company forecasts that newspaper revenues will fall by 33 million pounds in the current financial year. However, Guardian Media Group chief executive Carolyn McCall said "We have not, and will not, cut journalism that is fundamental to our core purpose and values."

NECTAR FINANCES HIT BY OWN SUCCESS

Nectar card owner Loyalty Management UK revealed a 28.5 million pound loss after recalculating predictions about how many customers would redeem loyalty points on the card. The recalculation, which includes a 27 million pound provision and which was undertaken after LMUK's owner Groupe Aeroplan brought in a new financial model, concerns points issued before October 2007. LMUK's chief financial officer, Mark Grafton, said the recalculation did not indicate that shoppers were redeeming more points in the recession.

PROPERTY HELPS ADVERTISING DECLINE TO SLOW AT JOHNSTON

John Fry, the chief executive of Johnston Press, has said that a downturn in recruitment advertising has been offset by improved property advertising sales. The regional newspaper owner's advertising sales are now down 22 percent on last year, compared with 33 percent on last year in the first six months of 2009. Mr Fry said that the results showed improved stability, but that there were no guarantees that the advertising slump had ended. Johnston is now confident of meeting market expectations for 2009 by delivering an operating profit of about 62 million pounds.

The Independent

SAINSBURY'S BOSS WARNS AGAINST VAT ON FOOD AS PROFITS JUMP

Justin King, the chief executive of Sainsbury's, has said that the next government could hurt Britain's poorest people if it imposes VAT on food sales. Last week, Sir Stuart Rose, the executive chairman of Marks and Spencer, said that VAT may have to increase to 20 percent by the next government. King made his remarks after revealing an 18.5 per cent rise in underlying half-year pre-tax profits to 307 million pounds. The increase in profits comes after Sainsbury's non-food lines performed strongly and shoppers spent more than average.

GREGGS LOOKS AT THRESHERS' STORES TO DRIVE EXPANSION

Bakery chain Greggs is considering buying around 100 shops formerly owned by First Quench Retailing, the owner of Threshers which went into administration last month. Greggs' chief executive Ken McMeikan said that he was looking to acquire under 10 percent of FQR's estate, and that the figure could yet be reduced if outlets were unsuitable. Greggs plans to open more than 600 shops in the medium term. First Quench Retailing has an estate made up of 1200 properties, and five main bidders are said to be interested.

US DRUGS BOARD APPROVES GSK'S SWINE FLU VACCINE

GlaxoSmithKline is set to ship 7.6 million doses of its swine flu vaccine to America after the U.S. Food and Drug Administration approved the treatment. GSK now needs to provide the FDA with information about an outside contractor that fills vials for the company, but has confirmed that the vaccine will be ready by the end of the year. The vaccine is not the same as GSK's Pandemrix treatment. GSK declined to comment on how much the US will pay for the vaccine, but is understood to charge clients based on a sliding scale, with developed countries at the top.

REED ELSEVIER CHIEF LEAVES AFTER EIGHT MONTHS

Ian Smith, the chief executive of Reed Elsevier, has resigned after just eight months in the job. He is expected to receive a payout between 1.1 million and 1.5 million pounds if he fails to find a new post within the next year. The company denied a boardroom split and said it was mutually agreed that Mr Smith was not the right man to head the company in the current economic climate. Mr Smith had no previous experience of running a media business when he was appointed in March.

SCOTTISH & SOUTHERN SEES SHARP RISE IN PROFITS

Scottish & Southern Energy reported a 36 per cent rise in profits to 410.5 million pounds, but said it could not promise any price cuts. The company, which owns Southern Electric, Swalec and Scottish Hydro Electric and has nine million customers, said its main gas supply business traded at a loss in the half year, and that higher annual wholesale prices and increasing distribution and environmental costs put extra pressure on the business.

360 MILLION POUND NATIONAL EXPRESS CASH CALL GOES AHEAD

National Express has announced a 360 million pound rights issue without the support of the Cosmen family, its largest shareholder with an 18 percent share. The cash call is fully underwritten and supported by institutional shareholders including M&G, its second largest shareholder with a stake of 12.5 per cent. The Cosmen family said it was "not in the best interests" of the company and breached the limit it was willing to pay. If the family fail to subscribe they will lose their right to a seat on the board as their shareholding would be diluted to about 5.6 percent.

Prepared for Reuters by Durrants
Keywords: PRESS DIGEST British business Nov CORRECTION

COPYRIGHT

Copyright Thomson Reuters 2009. 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 Mail on Sunday

Aurum is understood to have agreed a vital refinancing with its lenders that will cut its debt by a third. Borrowings of 42 million pounds at Britain's biggest private jeweller, mostly owed to Landsbanki, will be converted to equity leaving the retailer owing about 55 million pounds. Aurum Chairman Don McCarthy will also lend an extra 10 million pound with support from Landsbanki. The new arrangement will cut the company's interest bill to about 3 million pounds a year.

Innocent, the smoothies fruit drinks company, plunged into the red last year having made a pre-tax loss of 11.2 million pounds for the year ending Dec. 31, compared with a profit of 12.1 million pounds the previous year. The losses were due to falling sales and an ambitious European expansion plan which saw their administration costs double. Turnover during the period fell from 112 million pounds to 99 million pounds.

Samworth Brothers has reported a 5.2 percent increase in turnover to 597 million pounds in 2008, weathering the recession with near record sales. The Melton Mowbray based firm, which supplies food to all the leading supermarket chains as well as producing its own brands, recorded a pre-tax profit of 42 million pounds, slightly up on last year. Margins were squeezed in the second half due to rising costs of fuel, distribution and raw materials but, in order to meet demand, the firm plans to hire more staff and is commissioning two new production facilities.
Sunday Times

Trinity Mirror, the owner of newspapers including the Daily Mirror, has decided to close its final-salary pension scheme to existing members citing its deficit which stands at 275 million pounds and accounts for 70 percent of the group's debt. The 3,000 active members of the scheme will be transferred to a less generous defined-contributions scheme, as will 20,000 pensioners and deferred members. Trinity estimates the measure will save 9 million pounds a year and says the savings will be invested in reducing the company's debt.
BRITAIN'S SULTAN OF SCRAP TAKE HOME 9 BILLION POUNDS IN WAGES
European Metal Recycling, the UK's largest scrap metal merchant, has reported an underlying sales rise of 25 percent to 2.8 billion pounds during 2008. Such a rise in profits during a period of plummeting commodity prices indicates that EMR continue to be boosted by the boom in recycling, as well as government legislation on recycling such as the "cash for bangers" incentive. Philip Sheppard, head of the Warrington-based family-run company, earned 9 million pounds last year.

Both Vodafone and BT are to attempt to counteract poor sales growth by increasing their cost-cutting measures. Vodafone blames its lethargic performance on increased competition in the Indian market, where new entrants such as Tata have launched a price war, but believes it can make another 500 million pounds of savings. The chief executive of BT, Ian Livingston, is expected to increase the company's savings target from 1 billion pounds to 1.3 billion pounds.

Antofagasta (W-shaped recession would hit share price badly)
The Sunday Telegraph

Barclays will this week pledge to reduce cash bonuses despite reporting near-record profits at its investment bank. Their report this Tuesday is expected to show that Barclays Capital saw revenues of 4.6 billion pounds in the three months to September, lifting group profits to 1.5 billion pounds. However, Barclays chief executive John Varley is to risk the anger of investment banking staff, with bonuses expected to be reduced and paid largely in shares.

Clare Montgomery, the barrister who represented former Chilean dictator General Pinochet in his Lords extradition hearing, will defend arms manufacturer BAE Systems if the Serious Fraud Office is successful in persuading the attorney general to proceed with a fraud prosecution against BAE. QC Timothy Langdale is acting as adviser to the SFO before it submits to Attorney General Baroness Scotland a file alleging BAE's involvement in corrupt arms deals in Tanzania and Eastern Europe. The company has denied any wrongdoing.
SAINSBURY'S TO GO GREENER WITH CARBON DIOXIDE
Sainsbury's Chief Executive Sir Justin King will announce this week that the supermarket is to become the first in the UK to cool food using carbon dioxide, rather than "F-gas" chemicals. The supermarket is expected to report a 300 million pound first half pre-tax profit on Wednesday and will commit millions of pounds to the new method of refrigeration. Asda trialled green refrigeration at its "eco-store" near Liverpool this year, while Marks & Spencer and Morrison's have said their new equipment will not rely on F-gases.

Shanks
Tate & Lyle
The Independent on Sunday

An investigation by the Financial Services Authority could reveal that former HBOS board members misled their investors about the future of the bank during the bank's 4 billion pound rights issue last year. A circular sent by the board to HBOS investors in June 2008 said the bank was "well placed to deliver long-term sustainable growth" but four months later it had collapsed. This news could cause hundreds of civil court cases against Lloyds Banking Group, which acquired HBOS in January, and could lead to the former directors of HBOS facing an "unlimited financial penalty".

The percentage of British Airways shares on loan to short-sellers has increased to more than 16 percent, according to research conducted by Data Explorers. This shows that there is a lack of confidence in the valuation of the shares. BA has announced a 292 million pound revenue shortfall for the six months to September, a figure which BA Chief Executive Willie Walsh believes could total 1 billion pounds for the full year. BA is also meeting resistance in its attempts to restructure its workforce, a move which would result in 3,000 job losses. A Christmas strike is being threatened by unions.

Platform, an arm of the Co-operative bank, has withdrawn itself from the self-certification mortgage market. It is the last lender to do so but has followed suit due to the controversy surrounding the products as the borrower does not have to prove their income in order to obtain one. A review by the Financial Services Authority said the sale of these mortgages should be banned. However, this does cause problems for self-employed people who are much less likely to be able to prove their income in line with the rules set by other mortgage packages.
The Observer
CADBURY'S FUTURE UNCERTAIN WITH TEN BILLION POUND KRAFT TAKEOVER BID IMMINENT

The U.S. food company Kraft has, under stock market rules, until 5 p.m. on Monday to make a formal offer for Cadbury . The UK confectionary manufacturer has for the past two months rejected informal approaches from Kraft, describing the proposed 10.2 billion pound takeover as "unappealing". Kraft predicts annual cost savings of between 625 million dollars and 1 billion dollars should the takeover go ahead, achieved largely through factory closures and job losses, particularly in Western Europe.
UK'S NUCLEAR FUTURE COULD RUIN KALAHARI
Rossing Uranium, a subsidiary of British mining firm Rio Tinto, is to expand its existing giant uranium mine in the Kalahari desert, Namibia, into the country's Namib-Naukluft National Park. Rossing, which is also part owned by French state-owned company Areva, part manager of the Sellafield nuclear complex, has leased hundreds of square kilometres of desert and plans to build one of the world's largest uranium mines in order to satisfy an increasing global demand for the radioactive material to fuel nuclear power stations.
Prepared for Reuters by Durrants.

Keywords: BRITAIN PRESS/SUNDAY

COPYRIGHT

Copyright Thomson Reuters 2009. 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 Mail on Sunday

Aurum is understood to have agreed a vital refinancing with its lenders that will cut its debt by a third. Borrowings of 42 million pounds at Britain's biggest private jeweller, mostly owed to Landsbanki, will be converted to equity leaving the retailer owing about 55 million pounds. Aurum Chairman Don McCarthy will also lend an extra 10 million pound with support from Landsbanki. The new arrangement will cut the company's interest bill to about 3 million pounds a year.

Innocent, the smoothies fruit drinks company, plunged into the red last year having made a pre-tax loss of 11.2 million pounds for the year ending Dec. 31, compared with a profit of 12.1 million pounds the previous year. The losses were due to falling sales and an ambitious European expansion plan which saw their administration costs double. Turnover during the period fell from 112 million pounds to 99 million pounds.

Samworth Brothers has reported a 5.2 percent increase in turnover to 597 million pounds in 2008, weathering the recession with near record sales. The Melton Mowbray based firm, which supplies food to all the leading supermarket chains as well as producing its own brands, recorded a pre-tax profit of 42 million pounds, slightly up on last year. Margins were squeezed in the second half due to rising costs of fuel, distribution and raw materials but, in order to meet demand, the firm plans to hire more staff and is commissioning two new production facilities.
Sunday Times

Trinity Mirror, the owner of newspapers including the Daily Mirror, has decided to close its final-salary pension scheme to existing members citing its deficit which stands at 275 million pounds and accounts for 70 percent of the group's debt. The 3,000 active members of the scheme will be transferred to a less generous defined-contributions scheme, as will 20,000 pensioners and deferred members. Trinity estimates the measure will save 9 million pounds a year and says the savings will be invested in reducing the company's debt.
BRITAIN'S SULTAN OF SCRAP TAKE HOME 9 BILLION POUNDS IN WAGES
European Metal Recycling, the UK's largest scrap metal merchant, has reported an underlying sales rise of 25 percent to 2.8 billion pounds during 2008. Such a rise in profits during a period of plummeting commodity prices indicates that EMR continue to be boosted by the boom in recycling, as well as government legislation on recycling such as the "cash for bangers" incentive. Philip Sheppard, head of the Warrington-based family-run company, earned 9 million pounds last year.

Both Vodafone and BT are to attempt to counteract poor sales growth by increasing their cost-cutting measures. Vodafone blames its lethargic performance on increased competition in the Indian market, where new entrants such as Tata have launched a price war, but believes it can make another 500 million pounds of savings. The chief executive of BT, Ian Livingston, is expected to increase the company's savings target from 1 billion pounds to 1.3 billion pounds.

Antofagasta (W-shaped recession would hit share price badly)
The Sunday Telegraph

Barclays will this week pledge to reduce cash bonuses despite reporting near-record profits at its investment bank. Their report this Tuesday is expected to show that Barclays Capital saw revenues of 4.6 billion pounds in the three months to September, lifting group profits to 1.5 billion pounds. However, Barclays chief executive John Varley is to risk the anger of investment banking staff, with bonuses expected to be reduced and paid largely in shares.

Clare Montgomery, the barrister who represented former Chilean dictator General Pinochet in his Lords extradition hearing, will defend arms manufacturer BAE Systems if the Serious Fraud Office is successful in persuading the attorney general to proceed with a fraud prosecution against BAE. QC Timothy Langdale is acting as adviser to the SFO before it submits to Attorney General Baroness Scotland a file alleging BAE's involvement in corrupt arms deals in Tanzania and Eastern Europe. The company has denied any wrongdoing.
SAINSBURY'S TO GO GREENER WITH CARBON DIOXIDE
Sainsbury's Chief Executive Sir Justin King will announce this week that the supermarket is to become the first in the UK to cool food using carbon dioxide, rather than "F-gas" chemicals. The supermarket is expected to report a 300 million pound first half pre-tax profit on Wednesday and will commit millions of pounds to the new method of refrigeration. Asda trialled green refrigeration at its "eco-store" near Liverpool this year, while Marks & Spencer and Morrison's have said their new equipment will not rely on F-gases.

Shanks
Tate & Lyle
The Independent on Sunday

An investigation by the Financial Services Authority could reveal that former HBOS board members misled their investors about the future of the bank during the bank's 4 billion pound rights issue last year. A circular sent by the board to HBOS investors in June 2008 said the bank was "well placed to deliver long-term sustainable growth" but four months later it had collapsed. This news could cause hundreds of civil court cases against Lloyds Banking Group, which acquired HBOS in January, and could lead to the former directors of HBOS facing an "unlimited financial penalty".

The percentage of British Airways shares on loan to short-sellers has increased to more than 16 percent, according to research conducted by Data Explorers. This shows that there is a lack of confidence in the valuation of the shares. BA has announced a 292 million pound revenue shortfall for the six months to September, a figure which BA Chief Executive Willie Walsh believes could total 1 billion pounds for the full year. BA is also meeting resistance in its attempts to restructure its workforce, a move which would result in 3,000 job losses. A Christmas strike is being threatened by unions.

Platform, an arm of the Co-operative bank, has withdrawn itself from the self-certification mortgage market. It is the last lender to do so but has followed suit due to the controversy surrounding the products as the borrower does not have to prove their income in order to obtain one. A review by the Financial Services Authority said the sale of these mortgages should be banned. However, this does cause problems for self-employed people who are much less likely to be able to prove their income in line with the rules set by other mortgage packages.
The Observer
CADBURY'S FUTURE UNCERTAIN WITH TEN BILLION POUND KRAFT TAKEOVER BID IMMINENT

The U.S. food company Kraft has, under stock market rules, until 5 p.m. on Monday to make a formal offer for Cadbury . The UK confectionary manufacturer has for the past two months rejected informal approaches from Kraft, describing the proposed 10.2 billion pound takeover as "unappealing". Kraft predicts annual cost savings of between 625 million dollars and 1 billion dollars should the takeover go ahead, achieved largely through factory closures and job losses, particularly in Western Europe.
UK'S NUCLEAR FUTURE COULD RUIN KALAHARI
Rossing Uranium, a subsidiary of British mining firm Rio Tinto, is to expand its existing giant uranium mine in the Kalahari desert, Namibia, into the country's Namib-Naukluft National Park. Rossing, which is also part owned by French state-owned company Areva, part manager of the Sellafield nuclear complex, has leased hundreds of square kilometres of desert and plans to build one of the world's largest uranium mines in order to satisfy an increasing global demand for the radioactive material to fuel nuclear power stations.
Prepared for Reuters by Durrants.

Keywords: BRITAIN PRESS/SUNDAY

COPYRIGHT

Copyright Thomson Reuters 2009. 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 Mail on Sunday

Aurum is understood to have agreed a vital refinancing with its lenders that will cut its debt by a third. Borrowings of 42 million pounds at Britain's biggest private jeweller, mostly owed to Landsbanki, will be converted to equity leaving the retailer owing about 55 million pounds. Aurum Chairman Don McCarthy will also lend an extra 10 million pound with support from Landsbanki. The new arrangement will cut the company's interest bill to about 3 million pounds a year.

Innocent, the smoothies fruit drinks company, plunged into the red last year having made a pre-tax loss of 11.2 million pounds for the year ending Dec. 31, compared with a profit of 12.1 million pounds the previous year. The losses were due to falling sales and an ambitious European expansion plan which saw their administration costs double. Turnover during the period fell from 112 million pounds to 99 million pounds.

Samworth Brothers has reported a 5.2 percent increase in turnover to 597 million pounds in 2008, weathering the recession with near record sales. The Melton Mowbray based firm, which supplies food to all the leading supermarket chains as well as producing its own brands, recorded a pre-tax profit of 42 million pounds, slightly up on last year. Margins were squeezed in the second half due to rising costs of fuel, distribution and raw materials but, in order to meet demand, the firm plans to hire more staff and is commissioning two new production facilities.
Sunday Times

Trinity Mirror, the owner of newspapers including the Daily Mirror, has decided to close its final-salary pension scheme to existing members citing its deficit which stands at 275 million pounds and accounts for 70 percent of the group's debt. The 3,000 active members of the scheme will be transferred to a less generous defined-contributions scheme, as will 20,000 pensioners and deferred members. Trinity estimates the measure will save 9 million pounds a year and says the savings will be invested in reducing the company's debt.
BRITAIN'S SULTAN OF SCRAP TAKE HOME 9 BILLION POUNDS IN WAGES
European Metal Recycling, the UK's largest scrap metal merchant, has reported an underlying sales rise of 25 percent to 2.8 billion pounds during 2008. Such a rise in profits during a period of plummeting commodity prices indicates that EMR continue to be boosted by the boom in recycling, as well as government legislation on recycling such as the "cash for bangers" incentive. Philip Sheppard, head of the Warrington-based family-run company, earned 9 million pounds last year.

Both Vodafone and BT are to attempt to counteract poor sales growth by increasing their cost-cutting measures. Vodafone blames its lethargic performance on increased competition in the Indian market, where new entrants such as Tata have launched a price war, but believes it can make another 500 million pounds of savings. The chief executive of BT, Ian Livingston, is expected to increase the company's savings target from 1 billion pounds to 1.3 billion pounds.

Antofagasta (W-shaped recession would hit share price badly)
The Sunday Telegraph

Barclays will this week pledge to reduce cash bonuses despite reporting near-record profits at its investment bank. Their report this Tuesday is expected to show that Barclays Capital saw revenues of 4.6 billion pounds in the three months to September, lifting group profits to 1.5 billion pounds. However, Barclays chief executive John Varley is to risk the anger of investment banking staff, with bonuses expected to be reduced and paid largely in shares.

Clare Montgomery, the barrister who represented former Chilean dictator General Pinochet in his Lords extradition hearing, will defend arms manufacturer BAE Systems if the Serious Fraud Office is successful in persuading the attorney general to proceed with a fraud prosecution against BAE. QC Timothy Langdale is acting as adviser to the SFO before it submits to Attorney General Baroness Scotland a file alleging BAE's involvement in corrupt arms deals in Tanzania and Eastern Europe. The company has denied any wrongdoing.
SAINSBURY'S TO GO GREENER WITH CARBON DIOXIDE
Sainsbury's Chief Executive Sir Justin King will announce this week that the supermarket is to become the first in the UK to cool food using carbon dioxide, rather than "F-gas" chemicals. The supermarket is expected to report a 300 million pound first half pre-tax profit on Wednesday and will commit millions of pounds to the new method of refrigeration. Asda trialled green refrigeration at its "eco-store" near Liverpool this year, while Marks & Spencer and Morrison's have said their new equipment will not rely on F-gases.

Shanks
Tate & Lyle
The Independent on Sunday

An investigation by the Financial Services Authority could reveal that former HBOS board members misled their investors about the future of the bank during the bank's 4 billion pound rights issue last year. A circular sent by the board to HBOS investors in June 2008 said the bank was "well placed to deliver long-term sustainable growth" but four months later it had collapsed. This news could cause hundreds of civil court cases against Lloyds Banking Group, which acquired HBOS in January, and could lead to the former directors of HBOS facing an "unlimited financial penalty".

The percentage of British Airways shares on loan to short-sellers has increased to more than 16 percent, according to research conducted by Data Explorers. This shows that there is a lack of confidence in the valuation of the shares. BA has announced a 292 million pound revenue shortfall for the six months to September, a figure which BA Chief Executive Willie Walsh believes could total 1 billion pounds for the full year. BA is also meeting resistance in its attempts to restructure its workforce, a move which would result in 3,000 job losses. A Christmas strike is being threatened by unions.

Platform, an arm of the Co-operative bank, has withdrawn itself from the self-certification mortgage market. It is the last lender to do so but has followed suit due to the controversy surrounding the products as the borrower does not have to prove their income in order to obtain one. A review by the Financial Services Authority said the sale of these mortgages should be banned. However, this does cause problems for self-employed people who are much less likely to be able to prove their income in line with the rules set by other mortgage packages.
The Observer
CADBURY'S FUTURE UNCERTAIN WITH TEN BILLION POUND KRAFT TAKEOVER BID IMMINENT

The U.S. food company Kraft has, under stock market rules, until 5 p.m. on Monday to make a formal offer for Cadbury . The UK confectionary manufacturer has for the past two months rejected informal approaches from Kraft, describing the proposed 10.2 billion pound takeover as "unappealing". Kraft predicts annual cost savings of between 625 million dollars and 1 billion dollars should the takeover go ahead, achieved largely through factory closures and job losses, particularly in Western Europe.
UK'S NUCLEAR FUTURE COULD RUIN KALAHARI
Rossing Uranium, a subsidiary of British mining firm Rio Tinto, is to expand its existing giant uranium mine in the Kalahari desert, Namibia, into the country's Namib-Naukluft National Park. Rossing, which is also part owned by French state-owned company Areva, part manager of the Sellafield nuclear complex, has leased hundreds of square kilometres of desert and plans to build one of the world's largest uranium mines in order to satisfy an increasing global demand for the radioactive material to fuel nuclear power stations.
Prepared for Reuters by Durrants.

Keywords: BRITAIN PRESS/SUNDAY

COPYRIGHT

Copyright Thomson Reuters 2009. 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 Mail on Sunday

Aurum is understood to have agreed a vital refinancing with its lenders that will cut its debt by a third. Borrowings of 42 million pounds at Britain's biggest private jeweller, mostly owed to Landsbanki, will be converted to equity leaving the retailer owing about 55 million pounds. Aurum Chairman Don McCarthy will also lend an extra 10 million pound with support from Landsbanki. The new arrangement will cut the company's interest bill to about 3 million pounds a year.

Innocent, the smoothies fruit drinks company, plunged into the red last year having made a pre-tax loss of 11.2 million pounds for the year ending Dec. 31, compared with a profit of 12.1 million pounds the previous year. The losses were due to falling sales and an ambitious European expansion plan which saw their administration costs double. Turnover during the period fell from 112 million pounds to 99 million pounds.

Samworth Brothers has reported a 5.2 percent increase in turnover to 597 million pounds in 2008, weathering the recession with near record sales. The Melton Mowbray based firm, which supplies food to all the leading supermarket chains as well as producing its own brands, recorded a pre-tax profit of 42 million pounds, slightly up on last year. Margins were squeezed in the second half due to rising costs of fuel, distribution and raw materials but, in order to meet demand, the firm plans to hire more staff and is commissioning two new production facilities.
Sunday Times

Trinity Mirror, the owner of newspapers including the Daily Mirror, has decided to close its final-salary pension scheme to existing members citing its deficit which stands at 275 million pounds and accounts for 70 percent of the group's debt. The 3,000 active members of the scheme will be transferred to a less generous defined-contributions scheme, as will 20,000 pensioners and deferred members. Trinity estimates the measure will save 9 million pounds a year and says the savings will be invested in reducing the company's debt.
BRITAIN'S SULTAN OF SCRAP TAKE HOME 9 BILLION POUNDS IN WAGES
European Metal Recycling, the UK's largest scrap metal merchant, has reported an underlying sales rise of 25 percent to 2.8 billion pounds during 2008. Such a rise in profits during a period of plummeting commodity prices indicates that EMR continue to be boosted by the boom in recycling, as well as government legislation on recycling such as the "cash for bangers" incentive. Philip Sheppard, head of the Warrington-based family-run company, earned 9 million pounds last year.

Both Vodafone and BT are to attempt to counteract poor sales growth by increasing their cost-cutting measures. Vodafone blames its lethargic performance on increased competition in the Indian market, where new entrants such as Tata have launched a price war, but believes it can make another 500 million pounds of savings. The chief executive of BT, Ian Livingston, is expected to increase the company's savings target from 1 billion pounds to 1.3 billion pounds.

Antofagasta (W-shaped recession would hit share price badly)
The Sunday Telegraph

Barclays will this week pledge to reduce cash bonuses despite reporting near-record profits at its investment bank. Their report this Tuesday is expected to show that Barclays Capital saw revenues of 4.6 billion pounds in the three months to September, lifting group profits to 1.5 billion pounds. However, Barclays chief executive John Varley is to risk the anger of investment banking staff, with bonuses expected to be reduced and paid largely in shares.

Clare Montgomery, the barrister who represented former Chilean dictator General Pinochet in his Lords extradition hearing, will defend arms manufacturer BAE Systems if the Serious Fraud Office is successful in persuading the attorney general to proceed with a fraud prosecution against BAE. QC Timothy Langdale is acting as adviser to the SFO before it submits to Attorney General Baroness Scotland a file alleging BAE's involvement in corrupt arms deals in Tanzania and Eastern Europe. The company has denied any wrongdoing.
SAINSBURY'S TO GO GREENER WITH CARBON DIOXIDE
Sainsbury's Chief Executive Sir Justin King will announce this week that the supermarket is to become the first in the UK to cool food using carbon dioxide, rather than "F-gas" chemicals. The supermarket is expected to report a 300 million pound first half pre-tax profit on Wednesday and will commit millions of pounds to the new method of refrigeration. Asda trialled green refrigeration at its "eco-store" near Liverpool this year, while Marks & Spencer and Morrison's have said their new equipment will not rely on F-gases.

Shanks
Tate & Lyle
The Independent on Sunday

An investigation by the Financial Services Authority could reveal that former HBOS board members misled their investors about the future of the bank during the bank's 4 billion pound rights issue last year. A circular sent by the board to HBOS investors in June 2008 said the bank was "well placed to deliver long-term sustainable growth" but four months later it had collapsed. This news could cause hundreds of civil court cases against Lloyds Banking Group, which acquired HBOS in January, and could lead to the former directors of HBOS facing an "unlimited financial penalty".

The percentage of British Airways shares on loan to short-sellers has increased to more than 16 percent, according to research conducted by Data Explorers. This shows that there is a lack of confidence in the valuation of the shares. BA has announced a 292 million pound revenue shortfall for the six months to September, a figure which BA Chief Executive Willie Walsh believes could total 1 billion pounds for the full year. BA is also meeting resistance in its attempts to restructure its workforce, a move which would result in 3,000 job losses. A Christmas strike is being threatened by unions.

Platform, an arm of the Co-operative bank, has withdrawn itself from the self-certification mortgage market. It is the last lender to do so but has followed suit due to the controversy surrounding the products as the borrower does not have to prove their income in order to obtain one. A review by the Financial Services Authority said the sale of these mortgages should be banned. However, this does cause problems for self-employed people who are much less likely to be able to prove their income in line with the rules set by other mortgage packages.
The Observer
CADBURY'S FUTURE UNCERTAIN WITH TEN BILLION POUND KRAFT TAKEOVER BID IMMINENT

The U.S. food company Kraft has, under stock market rules, until 5 p.m. on Monday to make a formal offer for Cadbury . The UK confectionary manufacturer has for the past two months rejected informal approaches from Kraft, describing the proposed 10.2 billion pound takeover as "unappealing". Kraft predicts annual cost savings of between 625 million dollars and 1 billion dollars should the takeover go ahead, achieved largely through factory closures and job losses, particularly in Western Europe.
UK'S NUCLEAR FUTURE COULD RUIN KALAHARI
Rossing Uranium, a subsidiary of British mining firm Rio Tinto, is to expand its existing giant uranium mine in the Kalahari desert, Namibia, into the country's Namib-Naukluft National Park. Rossing, which is also part owned by French state-owned company Areva, part manager of the Sellafield nuclear complex, has leased hundreds of square kilometres of desert and plans to build one of the world's largest uranium mines in order to satisfy an increasing global demand for the radioactive material to fuel nuclear power stations.
Prepared for Reuters by Durrants.

Keywords: BRITAIN PRESS/SUNDAY

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By Bate Felix

BRUSSELS, Nov 5 (Reuters) - The European Union secured agreement on Thursday on a telecoms bill to boost consumer rights, competition and fuel investment in the 300-billion-euro ($442.3 billion) a year sector.

Agreement had been held up by the resistance of European lawmakers to EU member states such as France, the UK and the Netherlands wanting to be able to cut off Internet access to users suspected of illegally downloading files.

France already has a "three strikes and out" law to restrict subscribers suspected of breaches.

In the end it was agreed that Internet users suspected of activities such as downloading copyrighted material or child pornography, cannot have their Internet access cut off without a prior fair hearing.

"It has been a long hard battle but at least all sides have acknowledged that fundamental rights of users need to be guaranteed in the digital world," Monique Goyens, director general of BEUC, the European consumers' organisation, said.

The deal now goes to the European Parliament and the Council of EU telecoms ministers for approval.

MORE COMPETITION

The reform will also create a pan-EU supervisory agency called the Body of European Regulators for Electronic Communications (BEREC) to improve how the 27-nation bloc's telecoms rules are applied so that no operator can be shielded from competition.

The reforms could see dominant telecoms operators such as Germany's Deutsche Telekom, Telenor , TeliaSonera and BT facing more competition.

National regulators will, however, have to ensure operators receive a fair return for their investments into next generation access (NGA) networks such as optical fibre and wireless technologies.

"It is a real opportunity in terms of economic take-off because if you look at the turnover, you are looking at over 300 billion euros in the sector," Catherine Trautmann, a French socialist deputy who helped steer part of the reform through the European Parliament, told the news conference.

"For businesses in the sector, there will be the possibility for further growth and investments without having to recourse to public contributions," she said.

The reforms also beef up consumers' contractual rights and give national regulators power to force operators to offer minimum levels for services such as voice and video made using the Internet.

(Reporting by Bate Felix; editing by Elaine Hardcastle)
($1=.6782 Euro) Keywords: EU TELECOMS/

(Reuters Messaging: bate.felix.reuters.com@reuters.net; Email: bate.felix@thomsonreuters.com; +32 2 287 6812)

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BRUSSELS, Nov 5 (Reuters) - European Union regulators urged the Dutch telecoms watchdog on Thursday to align with EU rules the way it sets fixed telephone fees that operators charge rivals to use their network, aiming to give users a better deal.
The European Commission has been seeking cuts in fixed and mobile tariffs for making telephone calls, sending text messages and reading emails. In May, it unveiled guidelines for mobile phone calls that will save customers 2 billion euros ($3 billion) over the next three years.
EU countries and lawmakers approved this week reforms that will boost consumers' contractual rights and set up a pan-European supervisory body to open competition in the telecoms sector.
Dutch regulator OPTA's calculation model includes costs that should not be attributed to the provision of call termination services and which may encourage operators to overcharge, the Commission said in a letter to OPTA.
"It is important that fixed termination rates are regulated effectively and in a consistent manner across the EU," Telecoms Commissioner Viviane Reding said in a statement.

The EU executive urged OPTA to reconsider its methodology. National regulators are obliged to take "utmost account" of Commission comments with regard to regulatory remedies.

(Reporting by Foo Yun Chee; editing by Dale Hudson) ($1=.6734 euro) Keywords: TELECOMS NETHERLANDS/EU

(foo.yunchee@thomsonreuters.com; tel +32 2 287 6844; Reuters Messaging: foo.yunchee.reuters.com@reuters.net)

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Copyright Thomson Reuters 2009. 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.

By Bate Felix

BRUSSELS, Nov 5 (Reuters) - European Union lawmakers and the bloc's governments clinched a deal early on Thursday over a stalled telecommunications reform package aimed at boosting competition, EU officials said.

A committee made of EU government representatives, members of the European Parliament and the European Commission ironed out differences over the bill between the three EU bodies, paving the way for a final rubber stamp by the EU authorities.

EU lawmakers sent the reform package back in May due to concerns the proposed bill would not adequately protect the rights of Internet users.

"I am very happy that we have reached an agreement on the telecoms package," said Asa Torstensson, Communication Minister of Sweden, which holds the collective EU presidency.

"This agreement strengthens the competitiveness among enterprises and enhances the consumer protection in Europe, which will lead to ... better and less expensive broadband services and substantially stronger protection for all Internet users."

The proposed reform would beef up consumers' contractual rights and also create a pan-EU supervisory body to improve how the 27-nation bloc's telecoms rules are applied so no operator can be shielded from competition.

In May, The EU Parliament voted 407 in favour, 57 against and with 171 abstentions on an amendment to strengthen the rights of Internet users.

The lawmakers wanted to make it harder for the authorities to cut off Internet access for any subscriber suspected of breaches such as illegal downloading of copyright material.

The assembly and EU states have a joint say on the reform, which comprises several parts that were all adopted by broad majorities. But due to the amendment, the prior informal deal with EU states was reopened.

The deal reached by a so-called conciliatory committee on Thursday, allows the parliament and the council of EU telecoms ministers another eight weeks to pass the final text without making any amendments. (Reporting by Bate Felix; editing by Andre Grenon) Keywords: EU TELECOMS/ (Reuters Messaging: bate.felix.reuters.com@reuters.net; Email: bate.felix@thomsonreuters.com; +32 2 287 6812)

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Copyright Thomson Reuters 2009. 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.

By Bate Felix

BRUSSELS, Nov 5 (Reuters) - European Union lawmakers and the bloc's governments, clinched a deal early on Thursday over a stalled telecommunications reform package aimed at boosting competition, EU officials said.

A committee made of EU government representatives, members of the European Parliament and the European Commission, ironed out differences over the bill between the three EU bodies, paving the way for a final rubber stamp by the EU authorities.

EU lawmakers sent the reform package back in May due to concerns the proposed bill would not adequately protect the rights of Internet users.

"I am very happy that we have reached an agreement on the telecoms package," said Asa Torstensson, Communication Minister of Sweden, which holds the collective EU's Presidency.

"This agreement strengthens the competitiveness among enterprises and enhances the consumer protection in Europe, which will lead to ... better and less expensive broadband services and substantially stronger protection for all Internet users."

The proposed reform would beef up consumers' contractual rights and also create a pan-EU supervisory body to improve how the 27-nation bloc's telecoms rules are applied so no operator can be shielded from competition.

In May, The EU Parliament voted 407 in favour, 57 against and with 171 abstentions on an amendment to strengthen the rights of Internet users.

The lawmakers wanted to make it harder for the authorities to cut off Internet access for any subscriber suspected of breaches such as illegal downloading of copyright material.

The assembly and EU states have a joint say on the reform, which comprises several parts that were all adopted by broad majorities. But due to the amendment, the prior informal deal with EU states was reopened.

The deal reached by a so-called conciliatory committee on Thursday, allows the parliament and the council of EU telecoms ministers another eight weeks to pass the final text without making any amendments. (Reporting by Bate Felix; editing by Andre Grenon) Keywords: EU TELECOMS/ (Reuters Messaging: bate.felix.reuters.com@reuters.net; Email: bate.felix@thomsonreuters.com; +32 2 287 6812)

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Copyright Thomson Reuters 2009. 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.

RNS Number : 8905B BT Group PLC 03 November 2009

Tuesday 3 November 2009

BT GROUP PLC

TRANSACTION IN OWN SHARES - VOTING RIGHTS AND CAPITAL

BT Group plc announces that it has today transferred in connection with its employee share plans 4,104 ordinary shares at nil cost. The transferred shares were all formerly held as treasury shares.

BT Group plc's capital consists of 8,151,227,029 ordinary shares with voting rights. Following the above transfer, BT Group plc holds 399,200,102 ordinary shares as treasury shares. Therefore, the total number of voting rights in BT Group plc is 7,752,026,927

The above figure (7,752,026,927) may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, BT Group plc under the FSA's Disclosure and Transparency Rules.

= ends =

This information is provided by RNS The company news service from the London Stock Exchange

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