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Sunday newspaper round-up: Iran, RBS, Babcock

Sun, 24th Nov 2013 16:46

The interim deal between Iran and six world powers hammered out in the small hours of November 24th to curb the former's nuclear programme is a long way from perfect, but it meets two key tests. The first is that it will extend Iran's so-called "critical capability"?the time needed for it to produce one or several nuclear devices following a decision to weaponise?by many months compared with the trajectory it was on before the agreement. Secondly, it forms the basis for a more permanent solution to the decades-long problem of Iran's nuclear activities to be reached over the next six months, The Economist wrote on Sunday. Royal Bank of Scotland has been referred to City regulators over allegations that it deliberately "forced vibrant businesses into financial trouble" so that it could charge them high fees and ultimately seize their assets. The claims are made by Lawrence Tomlinson, an adviser to business secretary Vince Cable, who is convinced RBS has driven some of its own customers under so that the bank could take over their properties at knock-down prices, the Financial Times says. Ukrainians came out on Sunday in their largest numbers since the 2004 Orange Revolution to protest against last week's surprise government decision to postpone signing a historic integration deal with the EU this week. A crowd estimated at close to 100,000 people thronged central Kiev, scene of the pro-democracy uprising nine years ago, despite cold weather and fog, the Financial Times reports. Babcock International is in advanced talks on a blockbuster £1.5bn takeover of the world's biggest helicopter operator. The FTSE 100 company, which runs the Devonport and Rosyth dockyards and provides hi-tech support to the forces, plans a swoop on Avincis. It specialises in search and rescue, medical evacuation and flights to and from oil rigs. It may herald the start of the long-awaited wave of takeovers predicted by the City on the back of rapidly rising stock markets, The Sunday Times writes. Lloyds Banking Group is poised to sell a 12% stake in the wealth management firm St James's Place before Christmas in a move that would reap £390m. The taxpayer-backed bank is believed to be keen to reduce its remaining 22% holding in St James's Place to less than 10%. A lock-up agreement that blocks Lloyds from selling the shares expires tomorrow, according to The Sunday Times. The beleaguered natural resources giant ENRC is considering selling its African mining division, which is at the heart of a Serious Fraud Office investigation. One of the London Stock Exchange's most sordid chapters will close tomorrow when ENRC's shares will be delisted. It has been taken over by its trio of oligarch founders and the government of Kazakhstan for less than half the price at which it floated in 2007. The deal came after the SFO launched a probe in April amid long-running allegations of bribery and corruption, The Sunday Times explains. Vince Cable will come under intense questioning this week as to whether he will dole out an additional £4.2m in payments to advisors accused of "catastrophically" undervaluing Royal Mail. The Business Secretary will appear before Westminster's business select committee as Royal Mail unveils its maiden set of results since joining the London Stock Exchange six weeks ago, Scotland on Sunday says.Energy bills will drop by a minimum of £50 a year under Government plans to cut back green and social levies on household bills, according to industry sources. The Government is expected to announce a range of measures to shift some such charges away from utility bills and instead finance them through general taxation, along with other changes. The move, expected to be announced in the Chancellor George Osborne's Autumn Statement on December 5th, will come with a demand that energy firms cut bills still further and bear the cost themselves, The Mail on Sunday explains.Almost a quarter of BSkyB's shareholders rebelled against the £7m pay package of Chief Executive Jeremy Darroch and other top executives at the pay-TV company's annual general meeting on Friday. Almost 23% voted against BSkyB's remuneration report - with a further 0.6% abstaining, which is often viewed as a protest vote - after several shareholder advisory services flagged concerns over the way top executives are paid, The Guardian reports. Poundland has begun the process to float on the stock market in the early part of 2014 with a valuation of up to £800m. The discount retailer is this week expected to send out letters of engagement to the advisers leading the float: Credit Suisse, JP Morgan, Rothschild, and Shore Capital. It is understood that Warburg Pincus, the private equity owner of Poundland, is looking to raise between £200m and £300m from the float, which would value the retailer at between £700m and £800m. The finance raised would be used to fund significant expansion in the number of stores, The Sunday Telegraph says. AB
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14 Aug 2013 07:24

London pre-open: Flat start expected ahead of data, MPC minutes

Markets are expected to open more or less flat on Wednesday as traders await a barrage of economic reports, including the minutes of the latest Bank of England policy meeting.   As well as the minutes, investors will look out for gross domestic product figures from across the Eurozone, unemployment

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14 Aug 2013 07:10

ENRC first half profit tumbles

Diversified mining group Eurasian Natural Resources Corporation reported a sharp drop in profit after trading was hit by a poor pricing environment, higher finance costs, increased effective tax rate and impairment at Boss Mining. The Kazakh miner said revenue during the half year declined by 1% to

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14 Aug 2013 06:10

Kazakh miner ENRC H1 profit falls 17 pct

LONDON, Aug 14 (Reuters) - Kazakh miner ENRC said on Wednesday its first-half underlying core profit dropped 17 percent, in what could be its final set of earnings as a listed company. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $944 million for

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12 Aug 2013 16:44

London close: Markets finish lower despite mining strength

Markets were choppy on Monday with early gains on the FTSE 100 being erased by the end of trade as traders reacted to mixed newsflow from Asia and Europe. Even a strong performance in the heavyweight mining sector wasn't enough to push the London benchmark into positive territory today, with Financ

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12 Aug 2013 15:35

Sector movers: Miners jump on Chinese stimulus hopes

Rumours of stimulus measures from top consumer China sparked some strong gains in the mining sector on Monday as stocks extended gains following last week's upbeat economic data from the Asian powerhouse. Traders were reacting to a report from the South China Morning Post (SCNP) which suggested tha

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9 Aug 2013 15:08

Sector movers: Chinese data boosts mining stocks

Upbeat economic data from China boosted share prices in the mining sector on Friday as the outlook improved for the world's top metals consumer. Miners were extending gains made on Thursday after Chinese trade figures were well received by the market with both imports and exports smashing forecasts

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8 Aug 2013 16:29

UPDATE 1-ENRC directors tell investors to "seriously consider" bid

LONDON, Aug 8 (Reuters) - ENRC's independent directors said on Thursday that a lack of alternatives and an imminent delisting meant shareholders should "seriously consider" an offer from its founders, despite a price they said undervalued the Kazakh mining company. A group including ENRC's

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8 Aug 2013 15:28

ENRC committee suggest shareholders consider offer

The committee of independent directors of Eurasian Natural Resources Corp (ENRC) has suggested shareholders should 'seriously consider' the offer from its founders despite grave reservations about the price. The independent directors lamented that the revised offer from a consortium of the company

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8 Aug 2013 14:23

Independent directors tell ENRC shareholders to consider bid

LONDON, Aug 8 (Reuters) - The independent directors of Kazakh miner ENRC said on Thursday that a lack of alternatives and an imminent delisting meant shareholders should consider a buyouy offer from its founders, despite a price they said undervalued the group. "Given the risks and uncertai

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8 Aug 2013 08:21

London open: Chinese trade data lifts markets after sell-off

Better-than-expected trade figures from China helped push markets in positive territory on Thursday morning but sentiment was still fragile following the heavy sell-off the day before. Concerns about a tapering of stimulus by the Federal Reserve and an underwhelming forward guidance statement from

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8 Aug 2013 07:10

Thursday broker round-up UPDATE

Aquarius Platinum: Investec places its target price (prev.: 46p) under review, while keeping its hold recommendation. Avocet Mining: Canaccord Genuity upgrades from sell to hold with an unchanged target price of 112p. BBA Aviation: Citi raises target price from 292p to 335p reiterating a buy recom

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7 Aug 2013 19:33

UPDATE 1-ENRC founders say could sell international assets

* ENRC shareholders have until Aug. 28 to accept offer * Bidders include trio of founders, government of Kazakhstan * Assets include Mozambique coal, Brazil iron ore, Congo copper By Clara Ferreira-Marques LONDON, Aug 7 (Reuters) - The founders of Kazakh miner ENRC , biddi

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7 Aug 2013 14:50

Bidders for miner ENRC say could sell international assets

LONDON, Aug 7 (Reuters) - The founders behind Kazakh miner ENRC, bidding to buy out minority investors, said in an offer document published on Wednesday that they could sell some of the group's international assets after a "thorough strategic review". Eurasian Resources, a group of bidders

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7 Aug 2013 07:28

London pre-open: Falls expected ahead of BoE's inflation report

Markets are expected to open firmly in the red on Wednesday morning ahead of the Bank of England's inflation report, the first under the governorship of Mark Carney.   The Governor, who took over from Mervyn King in early July, is expected to unveil forward guidance today in an attempt to convince c

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7 Aug 2013 07:18

ENRC sees Q2 production increase across the board

Diversified mining group Eurasian Natural Resources Corporation (ENRC) saw production increase across all its major commodity classes in the three months ended June 30th with iron ore having its best quarter for three years. Iron ore extraction totalled 10,874 thousand tonnes (kt) in the second qua

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