FT Update

Wed 10 Mar 2010

Royal Mail reaches pay deal with its workers

Royal Mail last night offered a deal in which postal workers could receive pay rises worth 6.9 per cent over three years and greater job security in return for delivering a “transformation” of the business.

If this deal is accepted by the Communication Workers Union this will deter a future disruption and allow them to continue their £2bn modernisation programme.

Marsh & McLennan ready to sell Kroll arm for $1.3bn

The global insurance broker and consultancy company have put its corporate investigations division (Kroll) up for sale for £864m.

Bidders in late February consisted of: The Carlyle Group, Apax Partners and General Atlantic.

Smaller groups to lose state backing earlier

According to Moody’s Investors Service, smaller financial institutions such as building societies could lose the support of the government faster than larger banks. This could potentially trigger a wave of downgrades by the ratings agency.

Brown backs more female directors

Gordon Brown has threatened serious action to ensure companies appointed more female directors unless there was a sharp increase in the number of women on company boards.

Currently only 12.2 per cent of directors of FTSE 100 companies are women, and a quarter of the companies have all-male boards.

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