PRESS DIGEST - British Business =5

The Observer

M&S AXES STAFF BONUS DESPITE RISING PROFITS

Despite breaking the one billion pound profit barrier for the first time in 11 years, Marks & Spencer (MKS.L: Quote, Profile, Research) is axing bonus payments for staff amid mounting gloom on the high street. Analysts say bonuses are being held back because the retailer has missed profit targets set more than a year ago, before the credit crunch hit. That means 70,000 staff and directors, including chief executive Sir Stuart Rose, will receive lower bonuses or none at all.

LCR TO SELL LAND HOLDINGS

London & Continental Railways is set to return hundreds of millions of pounds to shareholders by selling its most valuable land holdings. The consortium, which owns and operates the UK arm of the Eurostar international train service, is in discussions with Australian shopping-centre developer Westfield (WDC.AX: Quote, Profile, Research) about a sale of land around Stratford station in east London. In addition, three independent valuers will next month assess how much 67 acres of LCR-owned land behind St Pancras station is worth. Nearly 50 percent of any sale proceeds will go to the Treasury.

IMPERIAL IN 4 BILLION POUND RIGHTS ISSUE TO PAY FOR ALTADIS