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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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24 Jun 2013 11:38

London midday: FTSE 100 nearly erases year-to-date gains

After a bright start, the FTSE 100 had sunk sharply into the red by Monday lunchtime with the index having nearly erased all of the impressive gains made since the start of the year. The Footsie was trading 1.05% lower by midday at around 6,052, compared to an intraday high of 6,132 reached early o

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24 Jun 2013 11:09

ENRC independent directors say cannot back buyout bid

LONDON, June 24 (Reuters) - The independent directors of Kazakh miner ENRC said on Monday they would not back a $4.7 billion buyout bid from the group's trio of founding shareholders. The independent committee of the board said the offer, worth around 234 pence per share, "materially underv

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24 Jun 2013 09:22

UPDATE 2-ENRC $4.7 bln buyout bid gets support from Kazakhmys

* Kazakhmys says bid for ENRC buyout "best alternative" * Founders confirm offer worth 243.3 pence per share * Kazakhmys down over 10 pct, ENRC shares below bid level By Clara Ferreira-Marques LONDON, June 24 (Reuters) - A $4.7 billion bid by the founders of ENRC to buy ou

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24 Jun 2013 08:27

London open: Stocks edge higher after recent sell-off

The FTSE 100 opened in positive territory on Monday morning, albeit only slightly, as markets made a tentative start to the new week following the dramatic sell-off seen over recent sessions. London's benchmark index closed Friday's session at just 6,116 following a number of steep declines since t

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24 Jun 2013 06:30

Kazakhmys board backs bid for ENRC, "realistic" exit

LONDON, June 24 (Reuters) - The board of Kazakh miner Kazakhmys, the single largest shareholder in miner ENRC , has said it will back a buyout bid for its troubled rival, an offer it characterised as the only "realistic opportunity" to sell out. Support from Kazakhmys, with its long-problem

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23 Jun 2013 23:51

Sunday newspaper round-up: ENRC, BIS, PBoC

The trio of Central Asian oligarchs who founded FTSE 100 listed miner ENRC are expected to return tomorrow to the markets with an even lower offer for the company. The new bid is expected by analysts to value the company at 240p per share, less even than the 260p initially tabled. While the firm´s

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23 Jun 2013 12:03

UPDATE 1-Founders set for reduced $4.7 bln buyout bid for ENRC

* Offer would be worth 234.3 pence per ENRC share * Founders face June 24 deadline for firm bid By Matt Scuffham and Clara Ferreira-Marques LONDON, June 23 (Reuters) - The billionaire founders of ENRC are close to finalising a buyout bid for the London-listed Kazakh miner, valu

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23 Jun 2013 10:08

ENRC founders close to 3.04 bln stg buyout offer

LONDON, June 23 (Reuters) - The billionaire founders of miner ENRC are close to finalising a buyout offer valuing the business at about 3.04 billion pounds ($4.68 billion), they said in a statement on Sunday. ENRC's founding trio and key shareholders - Alexander Machkevitch, Alijan Ibragimo

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21 Jun 2013 16:12

No improvement in sight as founders hammer out ENRC buyout bid

* Bidders face June 24 "put up or shut up" deadline * Offer indicated in May was for 175p in cash plus 0.231 Kazakhmys share * At current prices, offer is worth 238p/share * ENRC currently trading around 219p By Clara Ferreira-Marques LONDON, June 21 (Reuters) - The

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19 Jun 2013 17:17

London close: All eyes on tonight's Fed meeting

UK markets gave back Tuesday' slight gains as traders continued to take positions, or stay on the side lines, ahead of the all-important policy decision - and accompanying market reaction - from the US Federal Reserve due out later this evening. "Bernanke has two key messages that he wants to get a

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19 Jun 2013 12:01

London midday: Markets cautious as eyes remain fixed on Fed

A decline in risk appetite meant that UK markets were in the red on Wednesday morning ahead of the all-important policy decision from the Federal Reserve due out later this evening. "Attention is firmly on the Fed's monetary policy decision and press conference later, with investors clearly concern

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18 Jun 2013 17:04

London close: Markets move higher with Fed decision in focus

After a subdued start, the FTSE 100 finished with impressive gains on Tuesday as investors put aside worries ahead of the key 'risk event' of the week, the monetary policy meeting at the Federal Reserve. Banking stocks in London were performing well today after the China Securities Journal suggeste

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18 Jun 2013 14:34

FTSE 100 movers: Whitbread jumps as Costa drives strong first-quarter growth

Whitbread was performing well on Tuesday after the company reported a decent first quarter with group sales up 13.8 per cent, boosted by growth at Premier Inn and another strong performance from Costa which saw sales jump by an impressive 24.8 per cent. Whitbread said that while sales in its resta

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12 Jun 2013 16:58

Russian retreat from FTSE 100 extended with relegated metals firms

* Evraz, Polymetal demoted from FTSE 100 * Travis Perkins, Persimmon promoted to FTSE 100 * Russian gold miner Petropavlosk relegated to small caps * FTSE reshuffle effective after UK close on June 21 By David Brett LONDON, June 12 (Reuters) - Russian companies' exod

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12 Jun 2013 09:26

Down, not out: Russians exit FTSE 100 but London retains allure

* Russian metals firms set to exit blue chip index * Metals prices to blame, foreign ownership under wider spotlight * FTSE still appeals to miners, Russians stick with GDRs By Clara Ferreira-Marques and Alessandra Prentice LONDON/MOSCOW, June 12 (Reuters) - Two Russian m

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