Sainsbury’s left in worst strategic position ‘for at least a decade’ by botched merger with Asda. Sainsbury (J) (SBRY) botched merger with Asda has been a major distraction and left the supermarket in its worst position strategically ‘for at least a decade’, an expert on the group has said. The withering analysis from one of the City’s most respected supermarket analysts comes as the dust settles on a brutal rejection by the Competition and Markets Authority of the merger last week. It left some calling for the scalp of Sainsbury’s chief executive Mike Coupe as he prepares to unveil the grocer’s full-year results on Wednesday. HSBC’s global head of consumer retail research, Dave McCarthy, said: ‘Tesco is in a better position now than it has been in for at least a decade.Sainsbury’s is in a worse position than it’s been in for at least a decade. If anything, Sainsbury’s has been standing still or going backwards.’
Philip Green agrees to ‘unusual’ loan deal with HSBC Holdings (HSBA) that gives the bank security over millions of pounds worth of cash deposits. Topshop owner Arcadia has agreed a deal with HSBC that gives the bank security over millions of pounds worth of cash deposits as it draws up plans for a radical financial restructuring. The agreement with HSBC extends existing terms to provide Sir Philip Green’s firm with extra breathing space after the recent tightening of supplier credit insurance, it is understood. It means HSBC could act as guarantor in relation to letters of credit to suppliers should that be needed. City sources said the new contract was ‘unusual’. Arcadia operates 570 high street stores including Topshop, Top Man, Dorothy Perkins, Miss Selfridge, Burtons, Evans, Wallis and Outfit. The company is understood to have been speaking to major landlords, including shopping centre owners, in recent days. Meetings are due to continue tomorrow.
New £1.5billion fine threat for Standard Chartered (STAN) over Iran link after a civil case is filed by whistleblowers. British banking giant Standard Chartered could face a new £1.5billion fine for breaking US sanctions against Iran after a civil case was filed by whistleblowers, The Mail on Sunday can reveal. The revelation comes just weeks after the FTSE 100 bank agreed to a $1.1billion fine for the breaches. Standard Chartered agreed to the settlement earlier this month after a US criminal investigation found it had been conducting business with people linked to Iran and other nations, including Sudan and Cuba, which had been outlawed. In a statement, chief executive Bill Winters claimed to have ‘put these historical issues behind us’. It has since been reported the bank could be priming a $1billion share buyback – a way of boosting its share price to appease disgruntled investors and a signal it wants to draw a line under the debacle. But now two whistleblowers who claim to have prompted the criminal investigation have launched a civil case against Standard Chartered in the US. They could win millions of dollars in payouts.
Nick Candy’s podcast firm seeks another £5m from investors having burned through £1.5m in a matter of weeks. A podcast-maker backed by property tycoon Nick Candy is asking investors for another £5million – after burning through £1.5million in a matter of weeks. AIM-listed Audioboom Group (BOOM) has said it will raise yet more money after clinching the initial amount from investors in February. It said the £5million will be spent on signing talent for its podcast network. It will sell a chunk of shares for 2.5p each – 92% more than in February, when investors paid 1.3p per share to support the company.
MIDAS SHARE TIPS: This boss invested £45m of his own money in oil firm President Energy (PPC). Is it worth yours? Midas verdict: President has made mistakes, overspent and drilled in the wrong places – and the share price has suffered in response. Looking ahead, however, the business is stronger, more focused and, crucially, profitable. Having done so well with Imperial, Levine is determined to show that he can also deliver with President. Oil companies are never riskfree, but at 6.95p, these shares are a buy for adventurous investors.
