PRESS DIGEST - British business - Sept 4

The Times

IN FOR THE LONG HAUL: BA ROLLS OUT FIRST OF ITS NEW AIRCRAFT

On Friday, British Airways BAY.L unveiled its first new long-haul aircraft for 11 years ahead of the merger with rival Spanish airline Iberia IBLA.MC. The Boeing 777-300ER is one of six aircraft to be brought into use over the next 18 months, operating on routes to such destinations as Dubai, Delhi, Mumbai and Chicago. BA, which is phasing out its old fleet, will also take delivery of 12 Airbus A380s and 24 Boeing 787 Dreamliners over the course of the next decade. The new aircraft will aid BA in competing with expanding Middle Eastern airlines like Emirates and Etihad.

ROSE READY TO TURN HIS BACK ON THE CITY AFTER M&S

In an interview with the Times newspaper, Sir Stuart Rose, the departing chief executive of retailer Marks & Spencer (MKS.L), has intimated that he may never again work for a listed company. Countering criticism from the City after he was appointed executive chairman of M&S as well as its chief executive, Rose said that his election to the chairmanship was the board's decision and not his own. He said: "Frankly, after all this, I'm seriously considering whether I want to work for a public company again." He defended his record, saying that he had turned M&S around against market expectations.

JOHN LEWIS COUNTS COST OF VOUCHER SHORTAGE

Retailer John Lewis Partnership [JLP.UL] has experienced "difficulties" with the supply of its gift vouchers after its key supplier, printing firm BemroseBooth, was put into administration in June. The supply problem is thought to have affected the company during the lucrative wedding gift season, which is a typically busy time for voucher sales. According to trade magazine Retail Week, a dwindling supply of vouchers has resulted in some high street John Lewis stores being forced to depend upon reserves of vouchers held in stock.

The Daily Telegraph

STANCHART BOSS IN 1.4 MILLION POUND SHARE SALE

On Friday, a senior manager with Standard Chartered (STAN.L) scooped 1.4 million pounds through the sale of nearly 80,000 shares in the banking group. Jaspal Bindra, who is based in Hong Kong and is the head of Standard Chartered's Asian business, sold 78,991 shares at a price of 18.28 pounds, according to a regulatory announcement issued by the company. Bindra still owns more than 50,000 shares in the UK-listed financial services group.

BREWERS ROUND ON DIAGEO'S TAX "RUSE"

The UK brewing industry has criticised Diageo's (DGE.L) drinks tax proposals as a "ruse" to make spirits relatively cheaper. The British Beer & Pub Association said some of its members want the drinks company expelled from the industry's trade body. Diageo called for equivalence across all alcohol taxes. Tim Martin, chairman of pubs group JD Wetherspoon (JDW.L), called the company "a bunch of morons", while Kristin Wolfe at brewer SABMiller (SAB.L) said the move was a "ruse" to make high-strength alcohol cheaper relative to low-strength brands. A Diageo spokesman said the proposals would ensure alcohol is taxed according to strength and would make the tax system fair.

PREMIER FOODS JUMPS ON BID TALK

Takeover speculation surrounding Premier Foods (PFD.L), the food manufacturer, pushed shares in the company up 20 percent to 20.8 pence. Traders said potential bidders could include the Campbell Soup Company, Danone or Birds Eye's private equity owners. An estimated 17 million shares changed hands on Friday, giving the story some credibility, but if Premier Foods was in takeover talks it would be obliged to make a statement to the market. The company has so far failed to do so.

LAND SECURITIES FINDS PARTNER FOR "WALKIE TALKIE" SKYSCRAPER

Canary Wharf Group, the property developer, is expected to be announced as joint venture partner with property company Land Securities (LAND.L) for the construction of the "Walkie Talkie" skyscraper in the City of London. The building, which will provide around 660,000 square footage of office space, as well as 23,000 square footage of retail space, is due for completion in 2014. Potential clients include Aon, the insurance broker, Close Brothers, the UK financial services group and U.S. bank JP Morgan. A spokesman for Land Securities has declined to comment, but CWG has long been seen as the favourite to win the contract.

"BEN 10" TOYS SHIFT TANDEM'S GEAR

Tandem (TND.L), the maker of Claud Butler Bicycles and toys for TV programmes such as Bob the Builder, has posted a rise in pre-tax profits to 1.02 million pounds from 593,000 pounds. The Birmingham-based firm said its results were buoyed by better than expected sales in toys produced under licence for the children's cartoon programme Ben 10. After delivering forecast-beating figures, Tandem has said it will resume dividend payments for 2010 after previously freezing payments to shareholders in the financial year ending January 31. Tandem said that despite caution within the retail sector, it has received a rise in orders in the past two weeks following a seasonal change in merchandise.

WHAT THE BROKERS SAY

Antofagasta (ANTO.L) (Hold)

Serco Group (SRP.L) (Buy)

Cairn Energy (CNE.L) (Hold)

Admiral Group (ADML.L) (Sell)

Tullow Oil (TLW.L) (Buy)

The Independent

PUB GROUP RECRUITS SCHOOL LEAVERS

JD Wetherspoon (JDW.L), the pubs group, announced on Friday that it will create jobs for 1,000 school leavers over the next 12 months. The youngsters, aged 16 and 17, will be recruited to work in non-bar roles, such as serving coffee, cleaning tables and working in the kitchens. Wetherspoon has over 780 retail outlets in the UK and sells 25 million cups of coffee a year, making it one of the country's biggest coffee chains. Qualifications will be available for the new employees, the company said, and will include the option of a professional diploma and honours degree for those who show an aptitude for a managerial role.

BA DISPUTE FAILS TO DENT NUMBERS

British Airways BAY.L carried 3,154,000 passengers in August, a fraction fewer than the 3,157,000 in August 2009, despite fears that the airline's ongoing cabin crew dispute could have a major impact on travel numbers. The company's UK and European route passenger numbers increased by 1.8 percent when compared with August 2009. However, traffic to North and South America was down 2.9 percent and Middle East passenger numbers fell 0.1 percent, while business and first-class passenger numbers fell by 1.4 percent and non-premium passenger numbers fell by 3.1 percent. A spokesman for Unite, the union representing BA cabin crew, said these figures showed that a "worrying number" of passengers from BA's key premium sector "continue to book away" from the airline.

The Guardian

BID TALK SWIRLS AROUND BP AS IT NEARS FINAL CAP ON LEAKING WELL

Oil and gas firm BP (BP.L) is the focus of bid speculation at a time when it has suffered a historic depreciation in its market value, losing more than 100 billion dollars since the Deepwater Horizon accident on April 20. As BP grapples with its eight billion dollar clean-up bill in the Gulf of Mexico, its fall in value has presented the oil major as a vulnerable takeover target. Reports suggest its U.S. rival ExxonMobil has already broached the subject of a takeover by discussing the implications with the White House. However, BP remains defensive and has appointed Goldman Sachs and Blackstone as advisers to guard the company from any hostile offers.

Prepared for Reuters by Durrants