City insurers are braced for a wave of legal battles over the $50bn US opioid crisis – sparking bitter memories of the asbestos pay-outs which almost destroyed the Lloyd’s of London market in the 1990s. Insurance companies linked to Lloyd’s provide cover for a string of drugmakers accused of stoking the opioid epidemic, which has killed almost 400,000 Americans in the past two decades. The catastrophe is alleged to have started when pharmaceutical firms flooded the market with ultra-high strength prescription painkillers and created a generation of addicts. Firms responsible are expected to face a total bill as high as $50bn (£38bn).
The government has given the green light for Inmarsat (ISAT), Britain’s largest satellite company, to be acquired by private equity bidders. Connect Bidco, a consortium including buyout giants Apax Partners and Warburg Pincus, put forward a number of “voluntary undertakings” earlier this year in order to secure a deal with the British government, after it came under scrutiny from regulators relating to national security. The group, which swooped in with a $3.4bn (£2.6bn) offer in March, said it would ensure that the majority of key strategic decisions are made within the UK and that key parts of its global network operations would remain in the country.
The US firm seeking to buy defence business Cobham (COB) is preparing to offer concessions to protect British national security, as the Government decides whether to approve the £4bn deal. The Competition and Markets Authority (CMA) this afternoon handed its report on private equity firm Advent’s takeover of Cobham to the Business Secretary Andrea Leadsom. The Business Secretary will now consider the CMA’s findings, which are set to be released when she announces her decision. This is expected to happen within days.
Australian law firm Slater & Gordon is preparing legal action against investment platform Hargreaves Lansdown (HL.) over its support for disgraced fund manager Neil Woodford. In a tweet sent late on Tuesday afternoon, the company said it was looking into the merits of potential claims on behalf of investors who had poured money into Mr Woodford’s funds and asked them to follow a link to register their interest. It follows the spectacular implosion of Mr Woodford’s investment empire earlier this month. His flagship Equity Income Fund is being shut down, with savers facing massive losses.
Questor: even at 30 times earnings Rightmove (RMV) is a buy for its market dominance. Questor share tip: its estate agent customers can’t do without it and it is continuing to innovate in order to boost profitability
