PRESS DIGEST - British business press - July 4

Friday, 4 July 2008

The Times

SOARING COSTS RESULT IN BA AIRCRAFT FLYING WITH A QUARTER.

British Airways(BAY.L: Quote, Profile, Research) aircraft are now flying with nearly a quarter of their seats empty as a result of the slowing economy and higher airfares. 87,000 fewer passengers used BA last month. The airline carried 2.9 per cent fewer passengers than the same month last year and the load factor on its aircraft fell 3.8 percentage points to 75.7 per cent. BA blamed the fall on 'significant' increases in ticket prices because of the record high price of oil and a tough UK consumer environment.

PRESSURE ON SORRELL AS TNS REJECTS THIRD APPROACH

Major shareholders in Taylor Nelson Sofres(TNS.L: Quote, Profile, Research) have called on WPP(WPP.L: Quote, Profile, Research) to increase its one billion pound offer for the company after rejecting a third approach at 260 pence a share. One leading shareholder said that TNS would like to see WPP table an offer closer to 300 pence, although 280 pence would be considered. TNS's latest proposal was made up of two thirds cash and one third WPP shares and followed an announcement from the Takeover Panel after the market closed on Wednesday, telling WPP to make a firm offer or withdraw by July 9.

RUMOUR OF THE DAY