HSBC rejects calls to end pension cuts and fossil fuel funding. HSBC Holdings (HSBA) rejected calls to end a controversial “clawback” policy on staff pensions and refused to stop the funding of coal power projects in developing countries at a fiery annual meeting Birmingham. The bank has been under fire for its clawback policy, which unions claim allows it to deduct up to £2,500 a year from the pension pots of former Midland Bank staff who enjoy final salary pensions. However HSBC shareholders overwhelmingly rejected a motion to scrap the policy, with just 4% voting in favour. Chairman Mark Tucker said that abolishing the policy would not “be in the best interest of all shareholders” and argued that it was both legal and fair.
Bonmarché board hits back at takeover offer with cost-cutting plan. Bonmarche Holdings (BON) board has countered a takeover offer from Philip Day, saying the tycoon’s offer “materially undervalues” the retailer. Mr Day – owner of Edinburgh Woollen Mill, Peacocks and Jane Norman – is offering shareholders about 11.5p a share. Under takeover rules, he was required to make an offer for the company after increasing his stake to 52.4% by purchasing shares from the retailer’s former owners. The board’s defence sets the stage for a tug of war with Mr Day for control of the company. Shares in Bonmarché were trading well above Mr Day’s offer price at 15.4p on Friday afternoon.
Spread-betting firm Plus500 Ltd (DI) (PLUS) ‘stuck in reverse’ after revenue collapse. Spread betting firm Plus500 was branded a business “in reverse” by analysts following a collapse in revenue at the start of this year. Shares in the company plunged by nearly a third after its first quarter revenues fell to $53.9m (£41.3m), an 82% drop from the same period last year. The Israeli company put on a brave face, blaming “subdued financial markets” for the slide in sales. “Given the level of global political and economic news, financial markets were surprisingly subdued in the period, which reduced the number of trading opportunities for customers,” said chief executive Asaf Elimelech. But Justin Bates, analyst at Canaccord Genuity, said Plus500 was a company “in reverse”.
National Express picks up Silicon Valley workers with $140m shuttle buyout. National Express Group (NEX) will be taking employees at companies including Google, Facebook and Amazon to and from work after striking a $140m (£108m) deal for a majority stake in WeDriveU. The work shuttle operator has a host of Fortune 500 companies as clients, carrying seven million passengers a year across Silicon Valley and the San Francisco Bay Area. It offers a range of services, including shuttles connecting commuters from train stations to their offices, residential buses and on-demand operations. It is estimated that the US employee, university and hospital shuttle markets alone are worth $5bn.
Barclays urges investors to snub Edward Bramson’s ‘simplistic and flawed’ arguments for board seat. Barclays (BARC) has urged investors to snub activist investor Ed Bramson’s overtures, arguing that his analysis of the bank was “simplistic and flawed” and he had little banking experience. The secretive investor, who owns more than 5% of the lender through his fund Sherborne Investors, this week urged Barclays investors to elect him on to the bank’s board next month. Mr Bramson said the issues facing Germany’s Deutsche Bank were a “cautionary sign” for the UK bank as both have “similar strategic weaknesses”. In a blistering response to the corporate raider, the lender said he “does not possess the banking experience and skills” necessary for a board seat.
Sports Direct launches share buyback with fresh swipe at Debenhams board. has announced a new share buyback that will return up to £15m to shareholders, while launching a further broadside at the directors of Debenhams (DEB). The buyback equates to just under 1% of the total number of shares outstanding in Sports Direct and follows a larger £100m buyback launched by the company early last year. The move means that founder and chief executive Mike Ashley, who already owns 61% of the company, will marginally boost his control. Sports Direct has engaged Liberum Capital to conduct the buyback on its behalf.
Peppa Pig owner beefs up its stable with Killing Eve music producer. Entertainment One Limited (ETO), the media giant behind Peppa Pig, has struck a £178m deal to buy the world’s largest publisher of music for film and TV. UK firm Audio Network Limited, which creates and owns a specialist library of music that can be coupled with screen productions, is to be snapped up by eOne, it was announced late on Thursday. Audio Network’s music has been used in a number of popular TV series such as Killing Eve, and The Night Manager as well as recent big screen hits Deadpool and Avengers: End Game. EOne will tap investors for £191m by issuing new shares to fund the deal. Any surplus cash will be used to fund further acquisitions.
Brexit delay fuels hopes of flights rush. Airlines jetted to the top of the FTSE 100 leaderboard over hopes that holidaymakers will splash out on trips abroad after Brexit was delayed beyond the crucial summer period. Budget airline easyJet (EZJ) had rattled the sector last week by warning of slower summer sales as households hold off on booking holidays, deterred by the Brexit deadlock. EasyJet, British Airways owner International Consolidated Airlines Group SA (CDI) (IAG) and embattled package holiday giant Tui enjoyed a strong relief rally on Thursday after the agreement of a “flextention” that pushes the risk of a no-deal Brexit out to Oct 31.
Fashion retailer Quiz downplays risk from Debenhams exposure. Struggling fast fashion chain Quiz (QUIZ) has revealed that it makes around a quarter of its sales from Debenhams, raising fresh concerns about the health of the retailer as it sales missed forecasts. Quiz posted a 12% rise in sales to £130.9m in year to March, but this was below revised City expectations of £133m. The business was helped by a 34% rise in online sales, although a big part of these come through third-party businesses such as Next’s Label division and Debenhams’ website. Quiz revealed that it operates 108 Debenhams concessions in the UK. Along with online sales, it made 23% of its total sales last year from the department store.
