BANKING & INSURANCESir Fred's balancing actRoyal Bank of Scotland chief executive, Sir Fred Goodwin, will today attempt to repair the damage of the last few days by announcing his strategy to bring parity back to
the banks tattered balance sheet
(The Scotsman). As reported earlier in the week it is likely Goodwin will propose a rights issue with a view to raising between £10 billion and £12 billion, it is also expected that he will indicate a write-down of up £7 billion, while also placing some of RBS's most prized assets up for sale, including both Direct Line and Churchill from their insurance arm of the business. The next two days will be of vital importance to Goodwin and company chairman, Sir Tom McKillop, as they aim to restore the company's reputation after several days of negative speculation, after today's announcement Goodwin fill face company shareholders at tomorrow's AGM. There was some good news for Goodwin and McKillop yesterday as ratings agency Standard and Poor said of their strategy: "In our view, the shift in the level of capitalisation required for a bank such as RBS is less a function of its acquisitions than more general reflection of the development of the financial market crisis."
Read all today's banking news from scotsman.comENERGY & UTILITIESIberdrola still interested in British Energy Iberdrola, owners of ScottishPower, yesterday indicated that they are still interested in making a bid for British Energy, although reports coming from Spain point to the likelihood of a joint acquisition
(The Herald). Iberdrola recently suggested they would not be interested in British Energy unless the buying price was reduced from the 700p a share that was being discussed. ScottishPower chief executive Jose Luis del Valle, also Iberdrola's strategy head, believes there could be a strategic fit with British Energy, although indicated the deal would have to fit with the company's financial objectives, he said: "We are obliged to look at it – if it fits strategically, but we have to see if it fits financially." He added: "We know the UK market through ScottishPower." The group also announced its first-quarter net profits, reporting a 162% rise to £1.5 billion.
Further developments planned at DumbartonAfter binging production back to a field in Dumbarton lat year Maersk Oil North Sea UK is planning further development
(Aberdeen Press & Journal). An application will be sent to the UK Government for approval for the second phase of the development, this will include work on five subsea wells that will be tied back to the floating production vessel, Global Producer III. The return to production has cost Maersk more than £200 million since it announced its involvement with the field in January 2007. The site, previously operated by BP from 1993-97, which to date has produced 15 million barrels of oil, was acquired by Maersk as part of the Kerr-McGee acquisition in 2005. Production on this site will be the first sanctioned by Maersk since the Kerr-McGee acquisition.
Read all today's energy and utilities news from scotsman.comFOOD, DRINK & AGRICULTUREGrain production on the upDespite predictions to the contrary, cereal producers in Europe will not run dry according to the latest report from the European Commission (The
Scotsman). After last year, when consumption in the EU exceeded production by ten million tonnes, with the void being filled by imports, there were fears that in future years the cereal producers would not be able to supply the demand. The European Commission's report however, projects that production will rise from the current rate of 256 million tonnes to 293.6 million tonnes by 2010, with a further rise to 305 million tonnes by 2014. The report suggest consumption will also grow, but at a more modest rate, reaching 272.9 million tonnes by 2010 before reaching 285 million tonnes by 2014. If predictions are correct this will leave 56 million tonnes of surplus by 2014. In Scotland owing to high prices achieved at the end of last year there has been a higher than normal area of land being ploughed, this has been partly achieved due to a swing from predominately livestock farmers reducing the number of their stock to expand the area under crops. The rise in production can be attributed to both the ending of intervention buying for maize as well as reforms in the Common Agricultural Policy.
Read all today's food, drink and agriculture news from scotsman.comMEDIA & LEISUREITV shares set pace in marketShares in ITV, Britain's largest private broadcaster, took a jump yesterday on the back of news that German broadcaster RTL Group may be interested in buying BSkyB's stake in the company (The
Herald). Shares in the company closed on 67.9p, a 6.1% rise of 3.9p, at one stage shares had taken their biggest gain since the stock began to reach 70.2p, a 9.7% rise of 6.2p. The possible sale to RTL, which also owns Five, has been rumoured in the City after the Competition Commission instructed BSkyB to reduce its stake in ITV from 17.9% to 7.5%. RTL refused to comment on the current speculation, and likewise in March were not forthcoming when questioned on the issue, at the time chief executive, Gerhard Zeiler, said: "We are committed to Five, our channels, and there is absolutely nothing more to comment on that." ITV, which came together after the merger of Granada and Carlton in 2004, has been the subject of takeover attempts in the past, with failed attempts coming from both a private-equity firm and cable television firm NTL.
Read all today's media and leisure news from scotsman.comTRANSPORTBAA inquiry update expectedAn update from the Competition Commission from its on-going inquiry into the UK airport operator BAA is expected on Tuesday (BBC
Online). The airport authority have had a tough last month since the troublesome opening of Heathrow's Terminal 5, and any damaging news will heap further pressure on BAA's already maligned management. The investigation began last year, prompted after airlines and passengers complained of high charges, delays and poor service. BAA, which own London's three main airports as well as Glasgow, Edinburgh and Aberdeen, have recently been criticised by several airlines, including Ryanair and Virgin Atlantic, for holding a monopoly on Britain's main airports. With about 90% of all flights in London using BAA airports there has been calls from these critics for BAA to be "broken up", with particular calls for the sale of either Gatwick or Stansted. Douglas McNeill, an analyst with Blue Oar, said: "The Competition Commission is likely to indicate it is seriously considering mandating some sort of break-up." BAA's ownership of both Glasgow and Edinburgh, and whether this is detrimental to competition will also likely come under scrutiny from the Commission.
Read all today's transport news from scotsman.com
The full article contains 1181 words and appears in scotsman.com newspaper.
