PRESS DIGEST - British business - July 1

The Times

TESCO LINKED TO EARLY SALE OF NORTHERN ROCK

The government's attempt to find a buyer for Northern Rock (NRKx.L: Quote, Profile, Research) before the next general election appears to be making headway, with the supermarket Tesco (TSCO.L: Quote, Profile, Research) expressing a preliminary interest in acquiring the nationalised bank. The Treasury's separation of the bank's good and bad assets make it a more attractive prospect for any potential buyer, as the toxic mortgage loans held by the bank will probably remain in state possession. Virgin is also willing to renew a bid for Northern Rock, while other private equity groups have expressed an interest.

BOWKER RESIGNS AMID TURMOIL AT EMBATTLED NATIONAL EXPRESS

The troubled transport group National Express (NEX.L: Quote, Profile, Research) has been thrown into further turmoil by the sudden resignation of its well-respected chief executive Richard Bowker for an unnamed high-profile job overseas. The company has already been hit hard by the recession and is at the point of stalemate with the government in crucial negotiations over the future of its East Coast rail operation, preventing it from holding a much-needed 400 million pound rights issue. An unwelcome bid from its rival First Group further complicates the situation.

XSTRATA CHIEF WOOS ANGLO IN A MINING MASTERCLASS

Mick Davis, the chief executive of miner Xstrata (XTA.L: Quote, Profile, Research), chose a Melbourne Mining Club industry dinner to give a speech that was apparently a thinly-veiled attempt to sway shareholders of its underperforming rival Anglo American (AAL.L: Quote, Profile, Research) - and Anglo's chairman, who was present - into supporting Xstrata's proposal of a merger of equals, after the initial approach was rejected by the Anglo board. "You cannot think about acquisitions for a decade and then expect that you will get the risk one right, because you have no skill base and no experience," remarked Davis, pointedly.

TEMPUS

Reed Elsevier(REL.L: Quote, Profile, Research) [Hold until detail emerges]