Financial Times
MANDELSON SIGNALS END OF CREDIT SCHEME
Business Secretary Lord Mandelson signalled on Wednesday
ministers will refuse business pleas to extend the
five-billion-pound trade credit insurance scheme. Mandelson
spoke of the "limitations" of the credit insurance scheme at a
London press conference to highlight government measures to help
businesses and individuals deal with the recession. He appeared
to blame the insurance industry for the failure of the scheme.
The scheme, which offered up to five billion pounds of state
support, has supplied just 18 million pounds worth of cover to
72 companies.
WOMEN STRUGGLE TO BREAK INTO TOP BOARDROOMS
The proportion of female directors at FTSE 100 companies
rose from 11.7 percent to 12.2 percent over the past year,
according to a report by Cranfield University School of
Management. The slight increase was due solely to an overall
shrinkage in the size of boards, the report said. Cranfield said
banks delivered the "biggest disappointment", with women making
up just 9.3 percent of board members at FTSE 100 banks. Barclays and Royal Bank of Scotland have no female board
members at all.
MPC DIVIDED THREE WAYS OVER QUANTITIVE EASING
Minutes from the last meeting of the Bank of England's
monetary policy committee show that seven of the committee's
nine members voted for a 25 billion pound increase in the
quantitive easing scheme. One member favoured a larger increase
while one member argued that the scheme should be frozen. Bank
of England governor Mervyn King was among those who voted for a
25 billion pound increase. The minutes also show the committee
considered reducing the interest paid on a portion of commercial
banks' reserves held by the Bank.
ITV CHAIRMAN SAGA ENDS WITH NORMAN APPOINTMENT
Archie Norman has been appointed as chairman of the
broadcaster ITV. The appointment of Norman, a former
Tory MP and former chief executive of Asda, brings to an end a
seven month succession process for the broadcaster to replace
Michael Grade. Norman's first tasks in his new role will include
selecting a new chief executive and refreshing the board of the
broadcaster, as well as considering whether to make a bid for
rival broadcaster Five. Norman said: "It is an irresistible
challenge, a great brand, a people business with enormous talent
but facing an imperative for change: the challenge of adapting
to compete in a fragmented digital media world."
TNK-BP SET TO EXTEND RUSSIAN PARTNER'S TENURE AS INTERIM
CHIEF
It emerged on Wednesday night that TNK-BP is likely to
approve Mikhail Fridman to remain as acting chief executive of
the oil joint venture between BP and a group of Russian
tycoons until 2011. Maxim Barsky, a Russian oil executive in his
30s, has been approved by both sides as the permanent
replacement for Fridman but due to his lesser experience will
spend a year in preparation for the role, including a period
with BP next year. An announcement from the oil group is due
within the next few days.
L&G CLOSE TO THE END OF YEAR-LONG CHAIRMAN SEARCH
The board of Legal & General has identified its
preferred candidate to succeed Sir Rob Margetts as chairman and
is likely to make an announcement within days. According to
people familiar with the matter, the life and pensions group's
search led by Sir David Walker, L&G's senior independent
director, included talks with a "string" of candidates,
including Glen Moreno, chairman of Pearson; Ron Sandler,
chairman of Northern Rock and Pearl Group; and Sir Crispin
Davis, former chairman of Reed Elsevier. Up to three other
candidates have recently gone further in the process but none
are said to have been offered the job.
LLOYDS OFFLOADS MALL FOR 300 MILLION POUNDS
Hammerson has emerged as Lloyds Banking Group's preferred buyer for a shopping centre near Glasgow
being sold by the bank after the original owner defaulted on its
loan. The UK real estate investment trust is to buy the centre
for around 300 million pounds in a joint venture with Canadian
Pension Plan, a deal likely to represent a yield of around six
percent on the one million square foot mall. Unsuccessful
bidders for the centre included British Land and Land
Securities along with several sovereign wealth funds
and opportunity funds.
BOLLAND BECOMES M&S CHIEF EXECUTIVE
Marc Bolland has been appointed to succeed Sir Stuart Rose
as the new chief executive of Mark & Spencer. Bolland
will leave his role as chief executive of the supermarket chain
Wm Morrison, walking away from around four million
pounds of share options in the process. Sir Stuart Rose, who is
to stay on as chairman of the retailer, said: "I am thoroughly
and absolutely certain he's the right man for the job."
ITN SET FOR AUSTERITY PACKAGE
ITN is expected to reveal its first ever loss Thursday, with
John Hardie, chief executive since June, to tell staff that the
organisation lost "a significant amount" in the first half of
the year. Sources who have viewed the accounts said the loss
amounted to low single-digit millions of pounds. Job losses are
expected at the company, and its final-salary pension scheme
will close, with all current and new employees to be moved into
a deferred benefit scheme as the company looks to "refocus
activities and revenue streams".
MOTHERCARE TO LEAVE TOWN
Baby products retailer Mothercare is to shift its
focus from the high street to larger out-of-town outlets as
store leases come up for renewal over the next three years.
Chief executive Ben Gordon said: "We're not deserting the high
street but our out-of-town stores are our most profitable ones."
The firm will launch 31 out-of-town "parenting centres" over the
next three years, while up to 90 high street stores will be
closed unless landlords renegotiate rents.
Prepared for Reuters by Durrants
Keywords: PRESS DIGEST Financial Times Nov 19
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