The former head of MI6 has urged the government to block an American takeover of British aerospace giant Cobham (COB). Sir John Sawers, who ran the spy agency from 2009 until 2014, told a conference in London that “we need to be able to say for firms like Cobham, actually we want to keep this technology in the UK”. His intervention is the most high-profile challenge yet to a £4bn takeover of the 85-year-old business by American private equity firm Advent, and follows a string of warnings that losing such a strategically vital asset will damage the Britain’s international standing.
The boss of BT Group (BT.A) has urged rivals Sky and Virgin Media not to “beat up” his business by launching their own broadband partnership. Philip Jansen, chief executive, admitted that a deal in which Sky would use Virgin’s internet cables represents a significant threat to BT. He suggested that all parties’ interests could be better served by a new three-way deal that he claimed could protect returns for investors and deliver a nationwide broadband upgrade more quickly. Speaking at a dinner in London, Mr Jansen argued that a “let’s beat up BT” attitude would damage the telecoms industry and that there is a “formula that could work” for broadband providers and customers.
Hays Travel has stunned the City with a “mightily ambitious” deal to take over Thomas Cook Group (TCG) 555 UK stores, rescuing up to 2,500 jobs. The swoop catapults the family-owned firm into the national spotlight and will almost quadruple its store estate from 190 to 745. It provides a lifeline to Thomas Cook staff made redundant by the 178-year-old travel company’s collapse into insolvency on September 23 and is a much-needed boost for Britain’s ailing high streets. But the buyout, for an undisclosed sum, sparked scepticism that family-owned Hays can make a profit from the stores in the face of rising online competition when listed giant Thomas Cook could not.
Hargreaves Lansdown (HL.) finally found some air on Wednesday after a week of drops. Hargreaves, which has had a pretty torrid October so far after some downbeat commentary from analysts, managed to grab its first rise in eight sessions after its offering drew praise. Liberum initiated coverage of the company at a “buy” rating, saying that, alongside rival IntegraFin, Hargreaves offered “best-in class” service, which analysts said was “likely to lead to share gains”.
The Hong Kong stock exchange was forced by its own shareholders to abandon a bidding war for its London rival over concerns the deal would involve racking up risky debt. Hong Kong Exchanges and Clearing ditched its £32bn bid on Tuesday after London Stock Exchange Group (LSE) investors demanded a higher price. Bosses considered upping their offer but instead walked away. Shareholders close to both firms said that there were concerns among investors in Asia that if the offer price was increased, the Hong Kong firm would be forced to borrow billions of pounds, exposing it to further risk.
Fears are growing over the future of Greene King (GNK) 3,000 pubs after shareholders approved a £4.6bn takeover by Hong Kong’s richest man, Li Ka-Shing. A total 98.8% of investors waved through the deal at a meeting on Wednesday, which will see the 220-year-old chain fall into foreign hands. Shareholders in CK Asset, the investment firm owned by 91-year-old billionaire Mr Li, also voted overwhelmingly in support of the deal at 99.4%. But critics warned the deal could lead to a spate of closures. The majority of Greene King’s portfolio consists of freehold property, raising fears that CK Asset, which is primarily a property and infrastructure investor, could sell off or convert sites.
Ladbrokes and Gala Coral owner GVC Holdings (GVC) will make more profit than expected this year despite an ongoing slump in its shops. Like-for-like sales fell 18% in the three months to September, which the company blamed on a cut in the maximum stake at fixed odds betting machines in April from £100 to £2. However, the industry has also been hit by the decline of the high street and the rise of online and app-based betting. GVC confirmed it still expects to close 900 shops in the next two years. It has shut 41 since the beginning of July. Sales from betting machines fell by more than a third against the same period last year but the decline in UK store performance was less severe than the company had feared.
UK drivers on Shell’s loyalty scheme will soon be able to offset their environmental impact by planting more trees as Big Oil responds to fears about climate change. From next week, customers can opt into the carbon credit initiative, which will see Royal Dutch Shell ‘B’ (RDSB) invest £10m towards the restoration of forests to atone for drivers’ emissions. The plans have been criticised ahead of their launch next week as an attempt to greenwash the industry’s image. It comes as the big polluting industries face the challenge of reducing their own carbon emissions while maintaining profits.
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