BANKING & INSURANCERBS survives shareholder angerA final wave of shareholder discontent failed to halt Royal Bank of Scotland's determination to push ahead with its plans for a £12 billion rights issue. Chairman
Sir Tom McKillop insisted to a meeting of 120 shareholders that the move had been made in response to a 'fundamental shift in RBS's financial strategy'. However, McKillop refused to countenance suggestions the rights issue should be used to institute changes in the bank's management structure. He responded to the question: "The board believes we are focused exclusively on the key question, which is what is the right thing to do for shareholder value. We believe the right thing going forward is to support the executive management. We believe they have the expertise to deliver."
(The Herald) Read all today's banking news from scotsman.comECONOMYUnemployment up againNew figures from the Office of National Statistics have revealed unemployment has risen for the third consecutive month as the job market continues to endure turmoil. The rise was seen on both sides of the Border, with Scotland's seasonally adjusted claimant count growing by 900 in April to 70,100. However, the total is still 8900 lower than the previous April. CEBR economist Charles Davis commented: "Sixteen months of falls in claimant count ended in February, so we are now seeing the labour market ease as the effects of the credit crunch start to impact the real economy." Global Insight's Howard Archer added: "Unemployment is a lagging indicator and it seems inevitable that extended below-trend growth and markedly weaker business confidence will exact an increasing toll on the labour market over the coming months."
(The Scotsman) Read all today's economics news from scotsman.comENERGY & UTILITIESRamco moves into North SeaAberdeen oil and gas firm Ramco has made its first investment in North Sea exploration and production. The firm is renowned for making a large find in Azerbaijan but has now acquired a portfolio of royalty interests in the UK offshore sector from Kent-based Exploration Geosciences. The move comes after an unsuccessful attempt to expand into the Irish Sea saw Ramco return to its frontier exploration heritage and revenues from the North Sea portfolio could be used to further expand the exploration arm.
(The Herald) Read all today's energy and utilities news from scotsman.comMEDIA & LEISUREJohnston Press in rights issueNewspaper group Johnston Press has announced a rights issue and plans to sell a 20 per cent stake in the business to Malaysian investment firm Usaha Tegas. The firm, which owns the Scotsman, will offer shareholders one new share for each share held, with the shares available at 53p each – the price marks a 61 per cent discount on Tuesday's closing price. The decision has been taken as 'a proactive measure to recapitalise the business', according to a statement issued by Johnston, who also admitted that without the rights issue it may have been in breach of its loan covenants. Chief executive Tim Bowdler welcomed the £120 million investment by Usaha Tegas and said it would position the business 'more strongly in the continued development of its market-leading community media franchises.'
(The Scotsman)Trump tweaks golf plansThe controversial £1 billion golf development being promoted by the Trump Organisation in Aberdeenshire is to be altered prior to a public inquiry into the proposal. The alteration to the plan will see the amount of stabilisation required to secure sand dunes reduced, apparently in response to environmental concerns raised by objectors to the golf course and housing scheme. However, a spokesman for RSPB Scotland claimed the amendment did not go far enough toward protecting the endangered environment. The spokesman commented: "We've said all along that Mr Trump shouldn't aim to develop the sand dunes, and these alterations are merely a tweak which doesn't change the substantial damage this development would cause." The reporter's inquiry into the plan is due to get under way next month.
(BBC Scotland Online) Read all today's media and leisure news from scotsman.comRETAILShopping centres bucking credit crunchOne of the sector's leading property firms has claimed retailers are rushing to major shopping centre developments in Scotland as they attempt to beat the credit crunch. Land Securities, which holds a £1.3 billion portfolio of eight retail parks and shopping centres, has said a 'wide variety' of names are 'looking to associate themselves with strong retail locations' in a bid to shelter from the global economic turmoil. Regional portfolio manager Katherine Armstead said: "We have a great opportunity to get the tenant mix right. There are retailers out there who want to acquire and still want to come into schemes. While shoppers may be cautious about spending in what is generally accepted as a tough market, I can't say we have seen that reflected in demand for our shopping centres."
(The Scotsman) Read all today's retail news from scotsman.comTRANSPORTFirstGroup mea culpaFirstGroup chief executive Moir Lockhead has admitted the Aberdeen transport company should have sought new funds when it took over US firm Laidlaw last year. The admission came as the group asked shareholders for £240 million, in a move it claims is backed by major shareholders. Lockhead commented: "Last October when we took over Laidlaw we talked about raising £175 million. We chose not to because we thought maybe we didn't need to but the market changed since then." He added: "In October shareholders might have said hold on, we are not sure you need that. Now they are saying you are being very sensible." The potential share-placing would cut the company's debt from £2.16 billion to £1.93 billion and Lockhead believes the placing will prove vital. He said: "It is the right time to do (the fundraising) now on the back of good results and strong cash flows. I have met our largest shareholders and the response is good. It is covered, it is done. We do not know how oversubscribed it is, but it is done."
(The Herald)Line to reopenPassenger services in the rail line linking Stirling, Alloa and Kincardine are to begin on Monday after a break of 40 years. The line will be reopened by transport minister Stewart Stevenson and the ceremony will mark the completion of an £85 million project to upgrade the 13-mile stretch of track which will also be used to carry freight services. An hourly direct service between Alloa, Stirling and Glasgow will run on the reopened transport link with commuters travelling to Edinburgh able to connect to services from Stirling station.
(BBC Scotland Online) Read all today's transport news from scotsman.com
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