BANKING & INSURANCEBarclays considers share issueBarclays is considering a share issue in a bid to bolster its balance sheet and raise fresh equity. The move comes in the wake of similar announcements from Royal
Bank of Scotland and HBoS and amid speculation that the UK's third largest bank would go to its stockholders to take the pressure off its balance sheet. The bank issued a statement revealing it was considering the possibility of raising new capital through a share placing with new or existing investors as well as an associated offer to current shareholders to allow them to boost their holding or bolster it from the concurrent dilution. It is believed that any offer would involve a clawback of the new shares being placed. Barclays announced to the stock market yesterday: "Barclays notes recent speculation regarding the possible issuance of new equity by Barclays by way of a placing and a pre-emptive offer to existing shareholders. The board of Barclays confirms this is currently under active consideration. A further announcement will be made in the event that the board of Barclays decides to pursue such an equity issuance."
(The Herald)HBoS to calm exposure fearsThe forthcoming rights issue prospectus from HBoS is expected to address concerns that the banking giant is uncomfortably over-exposed to the troubled British housebuilding sector. While concerns have been raised over the £4 billion rights issue, the bank was handed a boost yesterday by the UK Shareholders' Association which revealed it did not expect HBoS to publish any writedowns on individual property assets. Director of UKSA Roger Lawson commented: "Perhaps HBoS hasn't been as open with ordinary shareholders as they have been with the institutions and underwriters. I don't think HBoS should disclose commercially sensitive information, certainly not on individual loans."
(The Scotsman) Read all today's banking news from scotsman.comFOOD, DRINK & AGRICULTUREDutch acquire GrampianGrampian Foods has been taken over by Dutch food producer Vion in a deal which will see 17,500 staff of the Livingston-based food firms change employers. Vion, based in Son en Breugel, already owns four UK-based firms producing bacon, pork, beef, sausages and pizzas. The Dutch group has pledged that the 17,500 jobs are secure, with a spokeswoman telling the BBC: "It is very much business as usual."
(BBC Scotland Online)Meanwhile, Vion's UK managing director Bill Thurston told the Scotsman to expect heavy investment in Grampian Foods following the deal. He commented: "We've bought a company that is business as usual, and we have to look at investment plans, which in the last few years probably hasn't had as much put in as it has needed. We've come in very much with a plan to grow that business and invest."
(The Scotsman)Kshocolat on the upGlasgow-based confectionary company Kshocolat has secured a £1 million investment package with which it expects to triple the size of its operation by the end of the year. A mix of private and corporate investors including Scottish Enterprise and Bank of Scotland have provided the facility which will see the firm move into a new warehouse and office site. Chief executive of the firm, which sells to 6000 shops worldwide, Simon Coyle said: "A large proportion of our sales are for gifts, but in the supermarkets especially we have launched ranges that appeal to people wanting to treat themselves, such as more ordinary chocolate bars. I think the thing about the brand which is appealing is that it is a bit different. We have unusual and unexpected combinations of flavours which are quite unique." This company recently completed a deal to supply all in-flight chocolate on British Airways' European business-class flights as well as holding contracts with Liberty and John Lewis. Coyle added: "The British Airways deal is not going to pay the bills, but it is a great way of getting our brand out there. This is an incredibly exciting time for Kshocolat. We're delighted to see that there is such a high level of confidence in the brand, our future vision for the business, and in the people who make it all happen."
(The Scotsman) Read all today's food, drink and agriculture news from scotsman.comTECHNOLOGYScottish Power and Strathclyde join forcesThe University of Strathclyde and Scottish Power have announced a joint venture to set up an advanced research centre at the university. The project is aimed at establishing the Glasgow-based utility company at the forefront of new developments and technology in the energy sector. Scottish Power is committed to kicking in £150,000 per year to the venture which will see researchers from the university's department of electronics and electrical engineering working on breakthrough technology. Scottish Power technology manager Dave Roberts commented: "We hope our partnership with the university will produce innovative technologies and designs that will help to make a real difference on our electricity networks and benefit our customers. The expertise within our business, coupled with the research capabilities from the Strathclyde team, will see Scottish Power leading the way with engineering development in this area." Deputy principal of the university Jim McDonald added: "This significant investment will help to further our world-class research into key power and energy technologies needed by industry and society."
(The Herald)Simclar dipped into redSimclar International has pledged it will make no more job cuts in Fife despite slipping into the red in 2006. The Dunfermline electronics firm was forced to slash jobs as it battled overseas competition but has now vowed to maintain its remaining production units in Scotland. Accounts filed at Companies House saw the electronics group suffer a 31 per cent fall in business to £15.4 million in 2006. Its European business fell by 42 per cent to £11.3 million.
(The Herald) Read all today's technology news from scotsman.comTRANSPORTBabcock & Brown takes Forth Ports stakeAustralian investment bank Babcock & Brown has increased its stake in Forth Ports to 23 per cent over the last week. The bank's European Infrastructure Fund began last week with a 19.6 per cent stake in the group but topped up its holding as the Forth Port stock price continued to fall.
(The Herald)Bus travel scheme under reviewA concessionary bus travel scheme which sees pensioners and disabled passengers travel for free on Scottish buses is under review by the Scottish Government. Bus operators have been told that fare reimbursement is to be capped, though Transport Minister Stewart Stevenson has insisted that despite the review, funding for the scheme is set to be increased. He commented: "If you want to buy more of something than you can afford – which is basically the position the government is in – you scale back the amount you actually buy. In the case of concessionary travel, that would mean making changes to the scheme so that less people are eligible in future years." Labour, however, has claimed the situation has arisen after the government failed to fund the scheme. Shadow environment spokesman Des McNulty commented: "We feel that concessionary travel is the biggest thing that devolution has delivered to the people of Scotland, in particular the pensioners. The retention of that scheme in its present form is a priority. Whatever restrictions are imposed will take away from its value."
(BBC Scotland Online) Read all today's transport news from scotsman.com
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