FT Update

Mon 16 Nov 2009

Mining groups warn on long-term gold output
The world’s top gold mining companies have warned global production of the precious metal is likely to resume a long-term decline in coming years, in spite of a record-breaking surge in the price of gold to more than $1.100 an ounce.

TPG investors offer
TPG, the private equity group, is giving its investors a chance to reduce sharply their commitments to its specialised financial fund, highlighting the difficulties that private equity firms seeking to buy distress banks are facing in the wake of the financial crisis.

Cazenove deal close
JPMorgan Chase is set to take ownership of Cazenove, the 190-year old stockbroker, in a £940m deal that will trigger bumper pay-outs for some of the City’s leading financiers.

Pearl chairman’s award
Pearl Group, the closed life assurance business built by Hugh Osmond, has agreed to award share worth €2.6m (£2.3m) to Ron Sandler, who became chairman in September after a debt restructuring, €600m capital injection and takeover.

Lloyd’s toxic legacy
The toxic legacy that Lloyds Banking Group has inherited from HBOS is likely to resurface this week with a restructuring of Admiral Taverns, the pub group in which the partly nationalised bank has a £855m exposure.
Lloyds is expected to agree to a debt-for-equity swap at Admiral just days after the collapse into administration of Kentmore, the property developer into which HBOS is estimated to have put at least £700m in loans and equity investment.

GSK plans to cut production waste
GlaxoSmithKline has set a target to cut by two-thirds the waste generated by medicines production from levels that until recently required 100kg of raw materials for every 1kg of drug produced.
The UK-based pharmaceutical group aims by 2015 to cut waste in its factories around the world to 30kg for each 1kg of “active pharmaceutical ingredient” (API), compared with an average of 100kg in 2005.

Aim to exceed
Aim is on course to raise more money this year than the £4.3bn raised in 2008.
Last month more than £1bn was raised on the junior market, compared with just £81.61m in October 2008, according to the latest statistics from the London Stock Exchange.

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