FT Update

Mon 2 Nov 2009

Lloyds tries sweeteners to tempt bondholders
Lloyds Banking Group will tomorrow unveil twin sweeteners to persuade existing bondholders to exchange their bonds for riskier investments that could convert into equity – the most innovative, and closely guarded, element of the part-nationalised bank’s £25bn recapitalisation programme.

Ryanair chief sees end to growth
Ryanair chief executive Michael O’Leary has given the strongest indication yet that the airline may stop growing after 20912, when it is due to hit its target of flying 90m passengers a year.
Speaking to the FT ahead of today’s interim results, he said Ryanair did not need to secure a deal with Boeing for more aircraft – and could instead shift to a strategy of rationalising routes, building up cash and paying dividends to shareholders.

C&W demerger plans
Cable & Wireless will use its first-half results on Thursday to revive plans for a demerger of its UK and international businesses.
The telecoms company is expected to hold out the possibility of separate stock market listings for its UK and international businesses in the first half of next year, although C&W is unlikely to commit to a precise demerger timetable.

Mirabaud tops league
Mirabaud Securities, part of one of Switzerland’s oldest banking groups, has emerged as the unlikely leader in a league table of Aim stockbrokers, illustrating the continued shake-up of London’s broking industry.

Santander green light
Santander will be allowed to bid for Royal Bank of Scotland’s 312-strong business-focused branches under competition rules agreed between London and Brussels.
The Spanish banking group has less than 8 per cent of the UK small business lending market and will be allowed to bid for the group of branches when it is put up for sale.

Morrisons signal
Wm Morrison, Britain’s fourth-biggest supermarket group, has signalled to suppliers that it is looking for more support for promotions as competition intensifies in the grocery sector.

BA fined for cartel role
British Airways has agreed to pay a fine of C$4.5m (£2.5m) after pleading guilty to taking part in a cartel of fixed prices on air cargo in Canada.

Kraft set for strong results as it eyes Cadbury
Kraft is poised to report strong third-quarter results tomorrow as it tried to win over investors before proceeding with a formal takeover offer worth more than £10bn for Cadbury,
The US food group, which is considering a formal bid for Cadbury before a Takeover Panel deadline on November 9, could beat consensus earnings expectations of 48 cents per diluted share, analysts say.

Aureos SE Asia push
Aureos Capital, the emerging market private equity group, will today unveil plans to raise a new $250m (£151m) fund to invest in south-east Asia.
A specialist investor in small and medium-sized companies with regional growth potential, Aureos operates more than a dozen funds focused on different regions, such as south and central America, Africa, and the Pacific Islands.

Continue