Challenger banks OneSavings Bank (OSB) and Charter Court Financial Services Group (CCFS) are in talks to merge in a proposed deal that would create a £1.6bn competitor in the financial services industry. The pair are considering an all-share deal, in discussions first reported by Sky News, and said the potential merger could give them “greater scale and resources to deploy on growth opportunities”. Both focus on savings and specialist mortgages, serving customers including buy-to-let investors, commercial property owners and developers. “Subject to the successful outcome of ongoing discussions, the boards of OSB and Charter Court expect to recommend the possible combination to their respective shareholders,” the banks said.
The chairman of ailing outsourcer Interserve (IRV) has issued a final plea to shareholders to back the company’s rescue plan, warning that it faces administration without a deal that would radically cut its giant debt pile. In an exclusive interview with The Sunday Telegraph ahead of this week’s crucial vote, Glyn Barker said: “If we lose, we run out of liquidity. To continue operating we need to raise money and we won’t win any more work unless we get these debts down.” A controversial debt-for-equity swap that hands 95pc of the cleaning and building company to lenders in return for a massive reduction in its borrowings will be put to investors this coming Friday.
Europe’s most powerful telecoms bosses colluded to break competition law and force the mobile retailer Phones 4U out of business, according to a £1bn court claim seen by The Sunday Telegraph. The collapsed chain’s administrator has alleged that some of the industry’s most senior executives, including Vittorio Colao, former Vodafone chief executive and César Alierta, the former chairman of O2’s parent company Telefonica, secretly agreed to pull out of Phones 4U. The retailer, which was owned by the private equity giant BC Partners, unravelled after O2, then Vodafone Group (VOD), then BT Group (BT.A) owned EE decided to not to renew their supply contracts.
Debenhams shareholders have scorned Mike Ashley’s brash boardroom attack as an attempt to gain control “on the cheap” as a six-month ban preventing from making bidding for the department store expires. Last week the tycoon tabled a motion to oust Debenhams (DEB) entire board, apart from finance chief Rachel Osborne, and install himself as chief executive. One top shareholder said there were significant risks in allowing Mr Ashley to gain a seat on Debenhams’ board whilst he also owned arch-rival House of Fraser. The investor said that he had “little confidence that he could turn Debenhams around given House of Fraser’s recent performance”.
Deutsche Bank’s board has agreed to discuss merging with German rival Commerzbank, potentially creating a Teutonic titan worth €24bn (£20.7bn). Initial unofficial contacts have now taken place, according to reports from Reuters and the newspaper Welt am Sonntag. The early-stage talks come after the German government indicated it would look favourably on a merger, which could create a major national champion at a time when the UK, home to Europe’s biggest banks, is set to leave the EU. The state already holds a stake of around 15% in Commerzbank after its bail-out in the financial crisis. Both banks have struggled to grow profitably in recent years.
One of the America’s biggest airlines has waded into a row over the rescue of regional carrier Flybe Group (FLYB). JetBlue has raised competition concerns with US authorities over Flybe’s cut-price sale to a consortium led by Virgin Atlantic. The airline, a low-cost specialist in North America whose market capitalisation is bigger than easyJet, has urged the US Department for Transportation “take official notice” that Virgin Atlantic could use take-off and landing slots earmarked for domestic use to connect to other flights across Europe. The sale of Flybe to Connect Airways, a group comprising Virgin Atlantic, Stobart Group Ltd. (STOB) and Cyrus Capital, has been approved by shareholders.
Questor: Convatec Group (CTEC) has lost its momentum so we must stomach our loss and sell. Questor share tip: the medical devices group has so far made money only for its former private equity backers and recovery looks far off
