BANKING & INSURANCERBS set to sell out to TescoRoyal Bank of Scotland is believed to be on the verge of selling its 50 per cent holding in Tesco Personal Finance to the supermarket giant. The £1 billion deal is
expected to bring the 11-year joint venture between Tesco and the Edinburgh banking giant to a close as RBS continues its effort to sell off a number of assets including its insurance arm and the train-leasing business Angel Trains. While the deal with Tesco is expected to be announced at the retailer's AGM this month, the sale of Angel Trains to Australian firm Babcock & Brown could be completed as early as this week. Meanwhile, several groups are said to be bidding for the bank's insurance arm which includes Direct Line and Churchill. The sale of Tesco Personal Finance would not spell an abrupt end to dealing between the bank and the retailer, however. RBS would continue to provide banking services to Tesco until the supermarket group could apply for its own banking licence from the Financial Services Authority.
(The Scotsman) Read all today's banking news from scotsman.comFOOD, DRINK & AGRICULTURE'Positive' meeting over fishing fuel issueFishing industry leaders are hopeful that a Pan-European compensation package can be secured as the industry struggles to cope with the rising price of diesel. A meeting in Peterhead is believed to have ended well for the sector, with George McRae of the Scottish White Fish Producers' Association hopeful of a settlement and ruling out militant action from fishermen. He told BBC Scotland: "What's likely is financial assistance to the industry. The meeting went very well; there was positive, constructive debate. We are hopeful over the next few weeks that constructive discussion will produce a package that we can live with in the short-term."
(BBC Scotland Online) Read all today's food, drink and agriculture news from scotsman.comMEDIA & LEISURESMG finally sells VirginSMG has announced the sale of Virgin Radio to The Times of India Group and Absolute Radio in a £53.2 million cash deal. The deal sees the struggling Glasgow media group disposing of the subsidiary for a quarter of the price it paid for the radio business just eight years ago. The price is also just over half of the £100 million offered by media entrepreneur Lord Waheed Alli three years ago. However, SMG has announced itself pleased with the price, a statement read: "The upfront cash consideration of the £53.2 million represents a successful outcome from the sale process." The sale does not include the Virgin brand and the takeover group would have to pay SMG a further £8 million should it negotiate a deal with Virgin to maintain the branding. The proceeds from the deal are expected to come in at £48.7 million net, from which a £15 million debt to the Bank of Scotland will be repaid and £4 million paid to the Scottish and Grampian Pensions Scheme. SMG added: "In addition to these payments, SMG expects to retain £1.7 million to provide additional headroom and flexibility and to return approximately £30 million to shareholders, representing approximately 3.15 pence per share before taxation."
(The Herald) Read all today's media and leisure news from scotsman.comTECHNOLOGYElectronics stays strongIndustry support group Scottish Engineering has claimed that Scottish manufacturing companies are weathering the economic storm engulfing much of the country. Lean engineering practices are reportedly keeping the sector afloat with orders up marginally and output recovering in the three months to June. The electronics sector is believed to be driving the period of positive growth, with fabricators, mechanical equipment and metal manufacturers reporting falling order levels. Chief executive of Scottish Engineering, Dr Peter Hughes commented: "One area which is concerning our industry, as well as most other businesses, is the cost of energy and fuel. While we have seen factory gate prices increase in the last quarter, this has not lead to an increase in profit margins. As in the past, the Scottish electronics sector continues to provide much-needed work throughout the engineering manufacturing industry."
(The Scotsman) Read all today's technology news from scotsman.comTRANSPORT£20 million cost of ferry lossProperty consultants DTZ have claimed the decision by Superfast Ferries to axe the Rosyth to Zeebrugge ferry link could cost the Fife economy up to £20 million a year. The group said the ending of the service in September would impact 'extremely adversely' on the economy. Superfast Ferries' Greek parent company Attica revealed the decision to axe the route last week, citing rising fuel costs and falling passenger and freight numbers as the reasons behind the unpopular decision. Scottish Ministers and Forth Ports have urged other ferry operators to step in and Transport Minister Stewart Stevenson last week said there was 'interest' from several companies in running the service.
(The Scotsman)Flyglobespan in troubleScotland's biggest airline, Flyglobespan, has revealed it has fallen deep into the red after a summer that cost the company millions. Climbing fuel prices are being blamed for the problems facing the low-cost carrier after it announced a £19.3 million pre-tax loss for the year to the end of October – the previous year saw a pre-tax profit of £5 million. However, the airline has insisted that load-factors, the measure of fullness of planes, have risen and that the company will fight clear of the losses. Chief executive Rick Green said: "The Canadian programme generated a substantial loss in the year due, in the main, to the appalling reliability record of the Icelandair aircraft leased to operate the east coast service. New routes introduced to Boston and to New York suffered from the surround effects of the Icelandair performance and, of course, in year one yielded only start-up returns as did the investment in the Stansted and Liverpool short haul routes. Together, these new routes and bases again contributed significantly to the loss incurred and while, in times of low fuel costs, such expected growing pains can be dealt with on a medium-term basis, a short-term view is necessary with fuel prices at record levels."
(The Herald) Read all today's transport news from scotsman.comPROPERTYMcKean in MBOConstruction firm McKean is no longer under the control of its founding family after a management buy-out valuing the firm at £1 million was completed. Two senior directors have bought the group after the McKean family brought a 90-year association with the company to an end. The decision to sell on control to the directors David Noar and Mark Fallon was taken by fourth generation family member Richard McKean after it became obvious that no members of the next generation wanted to take on the business which was founded in 1918 as McKean and Renwick. Under the deal, McKean will maintain an 18 per cent stake in the firm and will remain as chairman.
(The Herald) Read all today's property news from scotsman.com
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