The Times
Shell under fire over BG Group takeover as oil price slump continues: A leading Royal Dutch Shell shareholder has urged it to consider renegotiating the terms of its £43 billion takeover of BG Group.
Heathrow charges too much, says IAG’s Willie Walsh: Willie Walsh launched a fresh attack on Britain’s “rip-off” airports, warning that a third runway at Heathrow would turn it into an expensive white elephant.
Care home operator Four Seasons warns of crisis in industry: Britain’s biggest care home operator has reported another steep rise in pretax losses and warned that the industry is in deep crisis.
Anger at BHP builds over Brazil dam disaster: The rising pressure on BHP Billiton in the wake of a disastrous dam break in Brazil was laid bare by another fall in the miner’s share price.
Playtech withdraws £460 million approach for Plus500: Ambitions to translate success in gambling software into the financial sector were in tatters after Playtech was forced to withdraw a £460 million bid for Plus500 because of regulatory concerns.
Home Ownership is among lowest in EU: Britain now has the fourth lowest level of home Ownership in the EU after it was overtaken by France for the first time since records began 20 years ago.
The Independent
Living wage: Gulf opens up over pay between U.K.’s most profitable retailers: A huge gulf is opening up over pay between some of the U.K.’s most profitable retailers ahead of the Government’s introduction of the so-called national living wage (NLW).
Activist Elliott snaps up 6.5% stake in Alcoa: The activist investor Elliott Management has muscled in on a shake-up of Alcoa, the aluminium group, by buying a stake in the U.S.-listed metals company.
Yim Fung: Chairman at Chinese broker Guotai Junan Securities goes missing: Shares in one of China’s largest brokers plunged after it admitted that its joint Chairman and Chief Executive had gone awol for five days.
Pfizer, Allergan sign $160 billion merger deal making Viagra Owner the world’s biggest drugmaker: The U.S. drugs giant Pfizer unveiled plans to buy the Botox maker Allergan in a $160 billion (£106 billion) deal that is already attracting a wave of criticism.
Rail franchises still face ‘uncertainty and volatility’, says NAO: The rail franchise programme is still faced with “considerable uncertainty and volatility”, despite the Department of Transport improving its management after the collapse of the InterCity West Coast competition.
Financial Times
Takeaway start-up Deliveroo nets $100 million in latest fundraising: Deliveroo has raised new capital to take its total funding to about $200 million, making the London-based food delivery group one of Europe’s best-funded technology start-ups.
http://www.ft.com/intl/cms/s/0/319413e0-8eee-11e5-8be4-3506bf20cc2b.html#axzz3sHaCec10
Four Seasons losses widen as costs rise: Four Seasons’ future as Britain’s biggest care home operator remained in doubt, after it revealed widening losses as a result of rising costs and lower occupancy.
http://www.ft.com/intl/cms/s/0/f6b2e464-9207-11e5-bd82-c1fb87bef7af.html#axzz3sHaCec10
Warburg Pincus raises $12 billion fund in six months: Warburg Pincus has raised $12 billion for its latest private equity fund in just six months, as investors clamour to give money to the industry’s big names despite record amounts of capital already in the market.
http://www.ft.com/intl/cms/s/0/1068e50a-91fb-11e5-bd82-c1fb87bef7af.html#axzz3sHaCec10
Pfizer seeks Washington support for $160 billion Allergan deal: Pfizer’s Chief Executive has called on Washington to support its $160 billion takeover of Dublin-based Allergan, as politicians including Hillary Clinton lined up against the drugmaker’s attempt to slash its tax bill by moving overseas.
http://www.ft.com/intl/cms/s/0/c65488bc-91db-11e5-bd82-c1fb87bef7af.html#axzz3sHaCec10
Jaguar Land Rover to put £450 million into Midlands engine factory: Jaguar Land Rover is to double the size of its engine factory in the Midlands with a £450 million investment that reinforces the luxury carmaker’s position as one of the biggest investors in U.K. manufacturing.
http://www.ft.com/intl/cms/s/0/a5f1544e-920b-11e5-94e6-c5413829caa5.html#axzz3sHaCec10
Tod’s takes control of shoemaker Roger Vivier as luxury market wanes: Billionaire luxury tycoon Diego Della Valle has sold the Roger Vivier shoe brand to the Tod’s group – in which he is the majority Owner – for £415 million, a move aimed at boosting earnings after a period of weakening sales.
http://www.ft.com/intl/cms/s/0/6293668a-91d2-11e5-94e6-c5413829caa5.html#axzz3sHaCec10
Lex:
Pfizer / Allergan: history will not repeat: In 2009, Pfizer paid $68 billion to buy Wyeth. Pfizer once again has revenues of $48 billion, and earnings per share will be a little lower this year than in the year before the Wyeth deal, despite $45 billion of share buybacks since. The deal looks like a failure.
http://www.ft.com/intl/cms/s/3/dde378dc-9201-11e5-bd82-c1fb87bef7af.html#axzz3sHaCec10
ArcelorMittal: the harder they fall: ArcelorMittal, the Netherlands-listed steel producer, towers over its peers. It has twice the capacity of the global number two, Japan’s Nippon Steel. Yet that scale has not helped ArcelorMittal control costs, and it desperately needs to do so. Interest expense eats up a large portion of its profits and it has posted a net loss every year since 2011.
http://www.ft.com/intl/cms/s/3/677665e2-91cf-11e5-94e6-c5413829caa5.html#axzz3sHaCec10
Diebold/Wincor Nixdorf: cashing out: Paul Volcker, former Federal Reserve Chairman, described the ATM as the only useful innovation to emerge from banking in 20 years. It is ironic, then, that making and installing them is a challenging business. So challenging that Wincor Nixdorf and Diebold, two of the biggest in the industry, are combining in a defensive deal.
http://www.ft.com/intl/cms/s/3/b0a32332-91dd-11e5-bd82-c1fb87bef7af.html#axzz3sHaCec10
Lombard:
Field Marshal Fallon marches cyclical BAE back up the market hill: Military blimps are expensive to maintain these days. Michael Fallon, a crimson dirigible of a defence Minister, has squeezed an extra £12 billion from the prime Minister towards £178 billion in defence spending over 10 years. That is good news for BAE Systems. Its fortunes, like those of Mr Fallon, are currently buoyant.
http://www.ft.com/intl/cms/s/0/30b0cf68-91d2-11e5-bd82-c1fb87bef7af.html#axzz3sHaCec10
Saggy strategy: Gambling and investment shade into one another at the margins. But gaming software group Playtech has failed in its aim of blurring the boundaries in the U.K. The Israel-rooted group has walked away from the £460 million purchase of Plus500, a spread-betting business, in the face of official disapproval.
http://www.ft.com/intl/cms/s/0/30b0cf68-91d2-11e5-bd82-c1fb87bef7af.html#axzz3sHaCec10
The Daily Telegraph
Christmas tree supplier to the stars forecasts best season ever: Christmas tree sales are up, boosted by demand from Russians and corporate clients buying pre-decorated trees
Boeing is the big winner from David Cameron’s defence review: American aerospace and defence giant Boeing is seen as the biggest winner from the U.K.’s review of its defence capabilities of the future.
Morrisons gets into the Christmas spirit with new checkout voice: Morrisons is attempting to spread Christmas cheer among its customers by changing the voices on its self-service tills.
Extreme sports boost Montane, clothing for ‘people who sweat’: Extreme sports enthusiasts are set to drive up revenues at outdoor clothing brand Montane by 35% this year as U.K. shoppers seek out more challenging activities.
Defence stocks jump as Government reveals military spending priorities: Britain’s biggest defence companies have leapt to the top of the FTSE 100 after the Government revealed its priorities for military spending.
Harmless commodity crash accelerates as dollar soars: Copper prices have crashed to their lowest level since the Lehman Brothers crisis and industrial metals have slumped across the board as a flood of supply overwhelms the market.
Spanish lender BBVA ‘buys 30% stake in U.K. bank Atom’: Spanish bank BBVA has bought a near-30% stake in Atom, the U.K.’s digital-only lender, according to reports.
Volkswagen emissions scandal: company can fix 90% of cars: Volkswagen has found technical solutions for more than 90% of the vehicles affected by its emissions scandal in Europe. The recall process is now viable “technically, financially and in terms of manpower. This is good news,” Chief Executive Matthias Mueller said.
The Questor Column:
Dividend worries weigh on Lloyds Bank shares: Shares in Lloyds Bank drifted towards their lowest level in two years after doubts were raised by experts from Morgan Stanley about the ability of U.K. banks to return large amounts of cash to investors through dividends. In particular, they think risks around buy-to-let mortgages could force U.K. banks to raise cash reserves and this would impact their ability to increase dividends. The mouth-watering prospect for income-hungry investors has been for dividend payments to almost double to 6.5p per share by 2018. The impact is quite significant for investors because the special dividend forms about a third of the expected capital returns over the next three years. The annual dividend is expected to rise from a low base to 3p this year, 4p next year and 4.5p thereafter. The special dividend is expected to be about 0.75p this year, and up to 1.5p in each of the two following years. The bank is certainly making progress, with the core retail banking business showing signs of recovery. Pretax profits jumped 28% higher in the third quarter as lending slowly recovers. The bank is also more secure, with the capital ratio increasing to 13.7%, well above management targets. This makes Lloyds one of the safest U.K. banks. Questor thinks the market is pricing in a much slower return to dividends than some of the more optimistic expectations, and without those cash returns the prospect is far less attractive. We still feel the risks outweigh the potential for returns here. Avoid. Lloyds Banking Group at 71.78p unchanged. Questor says “Avoid”.
The Guardian
Glencore oil deal in Libya branded worthless by rival government: Glencore’s deal to export Libyan oil is not worth the paper it is printed on, the commodities company has been told.
British Airways Chief: build toll roads to help foot ‘outrageous’ Heathrow bill: Toll roads should be introduced around Heathrow to help pay for the costs of building a third runway, according to the Boss of British Airways’ Owner, IAG.
Ikea sales bounce in Britain thanks to mattresses and meatballs: Shoppers with a penchant for meatballs and mattresses have helped flatpack furniture firm Ikea report a surge in U.K. sales.
Debenhams criticised over canvassing for discounts on early supplier payments: The Federation of Small Businesses has criticised Debenhams after it emerged that the department stores chain was asking for discounts in return for receiving earlier payments.
Daily Mail
Osborne’s bid to balance books in crisis as experts predict he will be forced to borrow an extra £30 billion over the next five years: George Osborne will borrow £30billion more than expected over the next five years as he struggles to balance the books, experts warned.
Outsourcing firm Mitie suffers 12% profits slump, with shares down over 7% on woes for group’s healthcare unit: Deteriorating conditions at its healthcare division saw outsourcing firm Mitie Group post a 12.1% fall in its half-year pretax profits to £50.1 million.
Expansion on the menu at celebrity hang out Hakkasan as group set to open new restaurants in Indonesia and the U.S.: Restaurant and nightclub Hakkasan’s appetite for global expansion has grown with new openings planned in Indonesia and the U.S. next year.
Rumours of £1 billion bid from private equity firms boosts shares in Argos and Homebase Owner Home Retail: Talk of a possible £1billion takeover bid for Argos and Homebase Owner Home Retail Group sent its shares 5% higher, with analysts calling the bid rumours ‘justified’.
Boss of outsourcing firm Mitie in plea for Government to boost funding for social care: Mitie’s Chief Executive has called on the Government to increase funding for social care, demanding that staff are ‘paid well’ for the difficult jobs they do.
Daily Express
PPI claims firm fined after sending 1.3 million spam texts to mobile numbers it bought: A PPI claims company that bombarded mobile phone users with more than 1.3 million spam texts in just nine weeks has been fined £80,000 by the data protection watchdog.
Sausage and bacon sales plummet by £3 million after cancer warning: Sales of the products have plunged by £3 million following a report by the World Health Organisation (WHO) that said eating the food is almost as bad as smoking.
End of boys and girls products at Toys R Us as it rebrands items ‘gender-free’: Children’s favourite Toys R Us has stopped categorising items by ‘boys’ or ‘girls’ following pressure from campaigners.
The Scottish Herald
Arran Aromatics on course for happy Christmas amid boom in sales: The new Chief Executive of Arran Aromatics has said the fragrance to candles business is on course to grow sales by around 25% in the current year, putting it on course to return to profitability over the next 15 months with news stores planned for Glasgow and London.
Black Light to become employee owned: A company which began life as a mobile disco provider but now does lighting installations for clients such as Gleneagles Hotel, the SSE Hydro, Arsenal Football Club and Edinburgh’s Royal Botanical Gardens is to become employee owned.
Oil and gas firm highlights fall in North Sea costs: Xcite Energy has highlighted the fall in costs in the North Sea following the slump in the crude price, which it said could make it cheaper than expected to develop the Bentley heavy oil field East of Shetland.
The Scotsman
HSBC move away from U.K. ‘would get investor backing’: Any decision by HSBC to relocate its global HQ out of the U.K. over frustrations with banking regulation changes would be backed by many investors, a leading Scottish institutional shareholder claimed .
Crowdfunding launch targets horseracing fans: A £350,000 crowdfunding push aimed at creating one of the U.K.’s biggest horseracing syndicates has been launched.
Wave energy firm Aquamarine Power pulls the plug: Renewable energy firm Aquamarine Power has ceased trading after administrators failed to find a buyer.
City A.M.
U.K. to crash out of global trading top ten by 2015: The U.K. is set to fall out of the top ten trading nations by 2050, pushed out by the likes of South Korea, Mexico and other emerging markets, according to a new report.
Carl Icahn just bought a seven% stake in Xerox, sending the struggling printer company’s share price soaring: Carl Icahn just bought a seven% stake in Xerox, the billionaire investor revealed late this evening.
Biffa in secret sell off talks: Waste management firm Biffa is has been courting prospective buyers, giving itself a price tag of £1 billion, Sky News has reported.
CVC and Canada Pension Plan Investment Board team up to buy Petco from TPG and Leonard Green & Partners for $4.7 billion: CVC announced it has agreed a deal with Canada Pension Plan Investment Board (CPPIB) to buy U.S. pet supplies retailer Petco for $4.7 billion (£3.11 billion).
EIA: U.S. oil reserves hit a 43-year high as WTI and Brent crude oil prices continue to fall: The U.S.’ oil reserves rose to its highest point since 1972 last year, but plunging prices are likely to start weighing down the record-high reserves.
Parabis Group administrators appointed, as business broken up and sold on: AlixPartners has revealed that three of its Directors have been appointed joint administrators for legal services provider Parabis Group.
Hargreaves Lansdown co-Founder Stephen Lansdown to become a partner in creative investment fund Edge Investments: Stephen Lansdown, co-Founder of FTSE 100 financial services group Hargreaves Lansdown, is to join creative investment group Edge Investments.
Online shoppers abandon Tesco and Asda as website traffic drops at Britain’s biggest grocers: Tesco and Asda have seen a sharp drop in traffic to their websites over the last year, new research shows, in a sign that supermarkets are facing fierce competition online as well as on the shop floor.
European Stability Mechanism approves €2 billion Greek bailout slice: The European Stability Mechanism (ESM), the Eurozone-run agency that manages the Eurozone’s bailouts, has put the final touches on the deal that will grant €2 billion (£1.4 billion) to Greece.
