Los Angeles hedge fund has wrestled control of Domino’s Pizza Group (DOM) boardroom overhaul as the takeaway firms fights to end a long-running row with its franchisees. Activist investor Browning West was handed a seat on the board and will lead the search for the company’s top two jobs of chairman and chief executive alongside Domino’s senior independent director Ian Bull. In a move that could delay a resolution to the crippling row with franchisees, chief executive David Wild is to stay on longer than previously thought. Domino’s has bowed to shareholder pressure and agreed to find a new chairman before he leaves, who can then pick Mr Wild’s successor.
B&M European Value Retail S.A. (DI) (BME) has vowed to maintain its assault on the retail market despite profits at the discounter chain tumbling by 70%, its boss said. Simon Arora, who set up the business with his brothers Bobby and Robin in the late 1970s, said: “We’re in the same fast lane as Aldi, Lidl and Primark. The march of the discount retailers continues unabated. “Shoppers are not embarrassed to shop smart and save money. They are tired of high-low pricing and promotional activity by retailers – they are much more drawn to everyday low prices.” The chain plans to open more than 300 new stores over the next five to six years, bringing the total to 950.
Nervous investors are dumping shares in online grocer Ocado Group (OCDO) amid fears that its online rivals are catching up. The jitters have sparked a 20% fall in the company’s share price since Wednesday last week following claims from industry observers that Ocado’s relationship is cooling with Kroger, the largest supermarket chain in the US and a key client. Meanwhile fledgling US competitor Takeoff has also unsettled the British firm’s shareholders. Takeoff, which works with grocers Ahold Delhaize and Tesco, boasted about its technology at a meeting with investors in New Jersey. Although it is best known in Britain for grocery delivery, Ocado boss Tim Steiner has staked the firm’s future on robotic warehouse technology which is meant to save money and make grocers more efficient.
Vodafone Group (VOD) has raised its annual profit guidance despite posting a €1.9bn loss for the six months to September that was largely caused by problems in India. The Supreme Court of India last month ruled in favour of a government demand to pay at least $4bn in levies and interest within three months. Vodafone Idea, its joint venture with Idea Cellular that has debts of $14bn, said at the time that the “judgement has financial implications, which we are reviewing”. Chief executive Nick Read warned on Tuesday that the company could pull out of India due to the “critical” situation. “We are India’s largest foreign direct investment investor and I think there’s a moment where you have to say we’ve been commercially successful and our brand is strong. What we need is a supportive regulator environment and prices that are sustainable,” he said. “It’s been a very challenging situation for a long time and, if you look at the share price in India, it is effectively has zero value.”
Questor: the Prudential (PRU) has been split in two. M&G is a buy but what of the other half? Questor share tip: the insurance arm has established a strong presence in fast-growing markets in Asia and has great long-term prospects. Hold.
