FT Update
Fri 23 Oct 2009
Brussels set to back N Rock restructuring
The European Commission is next week expected to approve a radical restructuring of Northern Rock, paving the way for the break-up and sale of the nationalised bank.
Northern Rock’s proposal to split itself into two – in effect creating a “good” and a “bad” bank – was submitted to Brussels for state aid approval this year.
Credit Suisse boost
Credit Suisse reported bumper third-quarter earning yesterday, providing evidence of the sharp recovery in profitability for those banks least hurt by the credit crisis.
The group’s earnings followed strong third-quarter results from Goldman Sachs, JPMorgan Chase and Deutsche Bank that were boosted by reduced competition and buoyant conditions in financial markets.
Arcadia shake-up
Sir Philip Green yesterday unveiled a shake-up of the board of arcadia but the billionaire insisted he was not retreating from the fashion group to devote more time to his entertainment venture with Simon Cowell.
Ian Grabiner, who is in charge of the day-to-day running of Arcadia and has worked with Sir Philip for the best part of 20 years, has been made chief executive of the group.
Gartmore plans for IPO
Gartmore, the fund management group equally owned by management and private equity group Hellman & Friedman, aims to register floatation plans with the UK’s Financial Services Authority as early as next week.
Debt for equity fashion
Gala Coral’s board will today consider a structuring proposal that will see its three shareholders cede overall control of the gambling company to a group o debtholders, including debt funds that are not traditional shareholders.
Styles & Wood – which fits shops for Tesco and Marks and Spencer – saw Royal Bank of Scotland become its second-biggest shareholder earlier this year after it swapped debt for a 17 per cent stake. Jessops and Independent News & Media have also agreed debt-for-equity swaps with lenders.
Such deals are expected to become more common as the recession moves into a new phase.
National Express warns on profits
National Express is scrambling to reassure investors after warning on profits and stating that its £977m debt pile has grown.
Debenhams reduces borrowings by £100m
Debenhams has paid off £100m of its debt, but has kept back another 3100m from its £323m capital raising in June for acquisitions.
Stobart prepares for recovery after dividend cut
Rising freight levels helped Stobart report a modest increase in first-half profits, but the haulier cut its interim dividend by 26 per cent.
Anglo American takes axe to 2,700 managers
Anglo American has stripped down its management structure in a move it expects will save $120m (£72m) a year.
Ericsson shares hit
Shares in Ericsson fell nearly 7 per cent yesterday after the world’s biggest maker of wireless network equipment revealed a bigger than expected drop in third-quarter earnings.
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