Sunday, August 8, 2010

LONDON Sunday newspaper round-up: BP, Vodafone, Hewlett-Packard...


Date: Sunday 08 Aug 2010
The disastrous oil spill in the Gulf of Mexico has cost BP’s top five executives £30m, an analysis of the oil group’s accounts shows.

The personal losses have been triggered by the plunge in the group’s share price, which has fallen by a third since the Gulf well ruptured. The fall has wiped out the value of shares and share options granted to the group’s five executive directors on top of their normal pay and bonuses, the Sunday Times reports.
The Bank of England will stoke fears about Britain’s economic recovery this week when it predicts a nasty mixture of slower growth and higher inflation over the next 18 months. The grim forecast will come as the Bank unveils its quarterly inflation report. As well as adding to fears about the speed of the recovery, the report will fuel criticism about the Bank’s ability to hit the government’s inflation target of 2%, the Sunday Times reports.
Vodafone's partner in its Indian joint venture is understood to have met bankers in London  and Mumbai to prepare for a multibillion-dollar flotation of its stake in the mobile phone business. Indian steel-to-retail conglomerate Essar Group retained a 33% stake in the venture after Vodafone bought out its original partner, Hong Kong-based conglomerate Hutchison Whampoa, in 2007 for £5.7bn. Under the terms of that deal, Essar was given a year-long option under which it could also sell its stake to Vodafone after three years. That period began in May this year, the Observer reports.
John Lovering, the chairman of Harvester and the All Bar One pubs giant Mitchells & Butlers (M&B), has privately vowed to investors that he will resolve the group's divisive share ownership structure. The group is also expected to announce the sale of its Hollywood Bowl outlets tomorrow. At a recent dinner with around 12 leading institutional investors, the former Debenhams and Homebase boss set out his two-year objectives and pledged to "normalise the shareholder register", the Sunday Independent reports.
Virgin Media is selling its stake in UKTV, the digital broadcasting business that it owns jointly with the BBC. Britain’s only big cable operator, which provides phone, broadband and television services, has been grappling with large debts. It is hoping to raise at least £350m from the sale of its 50% stake in UKTV. The business consists of 10 channels, including Dave, aimed at male viewers, and Gold, which has an archive of classic drama and comedy series, the Sunday Times reports.

Investors in 
International Power are in line for a cash payout of up to £1.3bn under a takeover by GDF Suez, the energy giant controlled by the French state. Directors at the FTSE 100 power giant will meet tomorrow to recommend the deal that will see another British company fall to a foreign buyer. Sources said the talks could still break down but the goal was to unveil the transaction on Tuesday, when both companies announce half-year earnings, the Sunday Times reports.

The technology boss who added $40bn (£25bn) to the value of computer group
 
Hewlett-Packard (HP) has left the company in a dispute over expenses claims amounting to tens of thousands of dollars. The shock departure of Mark Hurd late on Friday stunned Wall Street and wiped nearly 10% off the company’s share price. Hurd, who became chief executive five years ago, agreed to step down after an inquiry into a sexual harassment allegation uncovered irregularities with his expenses, the Sunday Times reports.
Financial sector bonuses paid out to the lucky few in the five-month period between December and April for the previous financial year reached £10bn, compared with £8bn in 2008, according to figures from the Office for National Statistics (ONS). The figures are likely to inflame the debate over banking industry pay at a time when banks are under fire for not doing enough to support the UK economy, the Sunday Telegraph reports.
New Energy Technologies, a wood- chips-to-pellets supplier to the power industry, is planning its debut on the Alternate Investment Market next month to raise £5m for new plants, the Sunday Independent reports.
Jimmy Choo, the fashionistas' favourite shoemaker, could be about to change hands for up to £500m. The owners of the glamorous shoe business have been sounding out investment banks about "strategic options" for the business. Sources said the company's shareholders may appoint an adviser by the end of the summer to work on a strategic review, the Sunday Telegraph reports.

The largest shareholder in property developer 
Minerva has been canvassing fellow investors to gather support for a third attempt to oust the group's chairman and chief executive. Nathan Kirsh and his representative in London, Philip Lewis, are more confident the boardroom coup will succeed after discussing their concerns with the developer's main institutional investors, including Morgan Stanley, UBS and Goldman Sachs. Kirsh is unhappy about the way Minerva's property assets are managed and its failure to answer "rudimentary questions about the company's financing and strategy", the Observer reports. 


Saudi Arabia and the makers of the 
BlackBerry smartphone have reached a deal on accessing users' data that will avert a ban on the phone's messenger service, a Saudi official said. The agreement would involve placing a BlackBerry server inside Saudi Arabia to allow the government to monitor messages and allay official fears the service could be used for criminal purposes, the official said, the Mail on Sunday said. 
Source:digitallook

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