The Times
FOREIGN RETAILERS STOP THE WEST END SHUTTERS FALLING
The proportion of vacant shops in London's West End has
declined during the economic crisis, new figures by Colliers
CRE, the property consultancy, have revealed. The vacancy rate
in the area, which receives about 200 million visitors a year,
fell from 5.9 percent to 4.6 percent between January 2007 and
July 2009, in contrast to the rest of the country where it
jumped from 7.3 percent to 13.8 percent in the period. The
resilience in the West End has been credited to the entrance of
foreign retailers eager to sell their goods to overseas
tourists. The research also showed that empty premises in the
West End remain unoccupied for a shorter period than in the rest
of the capital and Britain.
SUGAR'S TEAM-MATE NETS 2.6 MILLION POUNDS IN POWERLEAGUE
SALE
Powerleague, Britain's biggest operator of
five-a-side football centres, has agreed a 42.5 million takeover
by its biggest shareholder, Patron Capital. The deal will result
in Claude Littner, the group's biggest individual shareholder,
netting 2.6 million pounds for his 6.12 percent stake in
Powerleague. The close friend of Lord Sugar will leave the
business after the takeover but will pocket unspecified
termination payments and will also undertake a consulting role
to the company for an initial six months. The company also
posted a drop to 2.3 million pounds in full-year pre-tax
profits, down from 3.3 million pounds, despite a 17 percent
increase in turnover to 30.9 million pounds.
EDF TRIES TO CUT DEBTS BY FOUR BILLION EUROS WITH UK UNIT
SALE
Britain's largest power distribution has been put up for
sale by EDF as the French energy group aims to cut at
least four billion euros from its 36.8 billion euros debt pile.
The unit, which employs 4,500 people, is expected to draw
interest from infrastructure funds operated by investment banks,
including Goldman Sachs, Morgan Stanley and Deutsche Bank. An
Abu Dhabi investment fund and Cheung Kong Infrastructure, which
is owned by Asian tycoon Li Ka-shing, have been identified as
likely buyers. Pierre Gadonneix, EDF's outgoing chief executive,
said the French company was examining other possible sales.
The Daily Telegraph
EVENING STANDARD TO BECOME FREE PAPER
London's Evening Standard has announced plans to become a
free newspaper, sacrificing 12 million pounds in revenue. The
group's board is in advanced talks with Network Rail, WH Smith
and Canary Wharf about distributing the title as it moves to
expand its readership. New owner Alexander Lebedev will increase
the title's print run to 600,000 when it becomes a freesheet on
October 12. Sources said the company will hold consultations
with staff in the coming weeks about subsequent job losses. The
move is the latest twist in the newspaper's battle with News
Corporation's thelondonpaper.
BAE HOLDS TALKS WITH LEADING INVESTORS OVER SFO CASE
Executives from BAE Systems, the defence group
facing allegations of corruption, are believed to have met
leading shareholders after talks with the Serious Fraud Office
over a settlement collapsed. Chief executive Ian King and
finance director George Rose are believed to have met
shareholders on Thursday, which is also when the SFO announced
it would present a case to the Attorney General. BAE shares lost
four pence on that day, but the group is understood to have the
backing of its investors as it works to make its business more
transparent.
RETAILER CLOSES ALL ITS JAPAN STORES
Fashion retailer French Connection is set to close
all of its 21 stores in Japan over the next six to nine months.
The company is also looking for a licensee to operate the brand
in the country. The Japanese operation was forecast to return a
loss of 2.5 million pounds in the year to January 31, 2010,
following a loss of 1.7 million pounds in the six months to July
31 2009. The group said the business will run as usual until the
end of 2009, after which it will operate with a focus on
clearing any excess inventory.
The Independent
AURORA NAMES NEW CHIEF EXECUTIVE
Mike Shearwood was appointed Aurora Fashions' new chief
executive on Friday. He will replace Derek Lovelock who will
become executive chairman. The company, created from the
administration of the Kaupthing-backed group Mosaic earlier in
2009, said it had performed better than expected in the past six
months. Aurora, which is behind high street fashion brands Karen
Millen, Coast, Warehouse and Oasis, has opened 137 new stores in
the same period, bringing its total number of outlets to 1,427.
TWO NEW NON-EXECS COMPLETE RBS BOARD
Royal Bank of Scotland, which is 70 percent owned by
the state, said on Friday it had completed an overhaul of its
board, appointing Philip Scott, Aviva's outgoing finance
director, and Penny Hughes, a former Coca-Cola executive, as
non-executive directors. The bank said it had now fulfilled its
pledge to the government to appoint three new independent
directors. It recruited Sandy Crombie, of Standard Life, as a
non-executive in May.
GLAXO HANDS MURDOCH REMUNERATION TOLE
Pharmaceutical giant GlaxoSmithKline has announced
the appointment of James Murdoch to the remuneration committee
of its board of directors. Murdoch, chairman and chief executive
of News Corporation for Europe and Asia, joined the drug
company's board on May 20, a move that was described at the time
as an "excellent addition" by Sir Christopher Gent, Glaxo's
chairman. His original role was to review "external issues that
might have the potential for serious impact upon the group's
business and reputation".
The Guardian
ECOMONISTS WARN HOUSING IS STILL OVERVALUED AFTER FIVE
MONTHS OF GAINS SEND PRICES BACK TO 2008 LEVEL
Nationwide reported on Friday house prices have climbed back
to last year's levels, following five consecutive months of
rises. The building society said the market still faced
"considerable headwinds". Economists have been surprised to find
that in contrast to the downturn of the early 1990s, prices have
begun rising rapidly. Banks are still restricting access to
mortgages as they struggle to repair their balance sheets amid
consumers fears over unemployment. Estate agents say such
factors have resulted in fewer properties coming on to the
market, which also distorts prices.
SUPERMARKET PLANNNG LAWS MUST BE TIGHTER - WATCHDOG
The Competition Commission has said its proposals for a new
"competition test" for supermarkets "would bring significant and
lasting benefits for consumers". The move, a product of the
commission's inquiry into the sector, would prevent supermarkets
with a strong presence in a particular area from shutting out
rivals by building more stores or extending existing ones. Lucy
Neville-Rolfe, Tesco's legal affairs director, said the
test would block investment in stores and create delays in
planning, "depriving customers of the benefits of new and
updated stores". The Association of Convenience Stores urged the
government to accept the watchdog's recommendations.
BANKS "SHOULD ALSO REVEAL PAY OF CONSULTANTS"
According to major institutional investors, the pay of
consultants who earn most of their income from an individual
bank should be disclosed under the reporting regime for banks
being devised by Sir David Walker. The Association of British
Insurers backed Walker's idea to publish bands of pay for high
earners, but does not call for individuals to be identified. The
ABI wants Walker to recommend that banks include not just
employees but also those who rely on the bank for income as
consultants. In its submission to the Walker review, the ABI
also said the information should include "a category comprising
other benefits in case there are large benefits in kind or
innovative methods are used".
Prepared for Reuters by Durrants
Keywords: PRESS DIGEST British business Oct 3
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