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Positive Points: A transformation plan for the group's loss making Iberia division has been announced. Network capacity is to be cut by 15% in 2013 to focus on profitable routes. A downsizing of its fleet by 25 aircraft - five long haul and 20 short haul, is to be made. A reduction of 4,500 jobs is to be implemented, pending agreement with unions. New commercial initiatives to boost unit revenues including increased ancillary sales and website redesign to be pursued. Passenger revenue in the period rose by 12.7%, passenger unit revenue was up by 9.1%, on top of volume increases of 3.3%. With exposure to the relatively healthy US economy, British Airways made an operating profit of €286 million in the nine month period. IAG is to make a cash tender offer to buy 100% of the share capital of Vueling, the Spanish low cost carrier based in Barcelona. It already owns 45.85%. The business potentially provides an alternative growth prospect to Iberia Express, its current low cost Spanish business. IAG chief executive Willie Walsh said: "With its leading position in Barcelona, European growth strategy and low cost base, Vueling has much to offer IAG. It has significantly increased capacity while remaining profitable, despite the Spanish economic slowdown, and already has extensive commercial arrangements with Iberia. We would plan to retain the current Vueling management team." The board remains focused on stringent cost control across the group. The company previously noted that "our synergies programme continues apace and we remain on track to deliver our 2012 targets and €500 million annual benefits by 2015." Although Spanish bank Bankia S.A. still holds a 12% share stake, measures to bolster the balance sheets of Spanish banks have been taken. These measures may have eased any requirement to raise cash, for which a sale of its stake in IAG could be made. The acquisition of BMI will potentially allow the airline to expand its operations at its home base of Heathrow. BMI currently enjoys 9% of the take-off and landing slots at Heathrow. Management noted that "the full integration of BMI into British Airways was completed last month and has been achieved smoothly and efficiently." Growing disposable income in the emerging markets could underwrite a broader increase in tourism and travel. With Spanish roots, Iberia is currently a strong player in Latin America.

Negative Points: The group's Iberia division reported an operating loss of €262 million. Group fuel costs rose by 23.5% to €4.63 billion. Group cash for the nine month period was down by €170 million to €3.56 billion, while net debt rose by €360 million to €1.508 billion. Adjusted gearing up 1% to 45%. Thanks to a previous holding in Iberia Airline, Spanish bank Bankia S.A. currently holds a 12% share stake in IAG. The potential sale of the stake continues to overhang, with a sale potentially dragging on the share price. The airline industry remains extremely competitive and unpredictable. Low cost airlines are competing heavily - easyJet is now courting business passengers. The recent storms on the US east coast are likely to have impacted British Airways flights. The air travel business remains extremely cyclical. Business travellers form an important profit driver for the former BA business. Cargo business is also sensitive to economic health. BA and rivals have been critical of Air Passenger Duty (APD) taxes, claiming that it puts aviation's social and economic benefits at risk. In 2011 British Airways paid almost £500 million in APD. With a strong focus remaining on group costs, management have come into conflict with staff. The company continues to make no dividend payment.

Financial Highlights: British Airways reported an operating profit of €286 million, Iberia an operating loss of €262 million. Passenger revenue in the period rose by 12.7%, passenger unit revenue was up by 9.1%, on top of volume increases of 3.3%. Fuel costs rose by 23.5% to €4.63 billion. Underlying non fuel unit costs down 1.0%.

Nine month results/Iberia transformation plan: Iberia provides a stark contrast with Ryanair In a good week for Ryanair, the contrast with IAG and its Iberia division was stark. While Iberia reported an operating loss of €262 million, Ryanair had upped its full year profit guidance by some 20%. IAG as a whole reported an operating profit, with British Airways generating an operating profit of €286 million. Consumer demand for low priced fares continues to apply pressure across the industry, with flexible labour laws now a central issue to costs. As such, IAG and Iberia are now playing hard ball with Spanish unions - 4,500 jobs are set to be lost at Iberia under the plan. BMI has now been fully integrated, with Iberia and its profitability now firmly in management's sights. On the upside, the rewards for IAG could be significant. Iberia's links to Latin America are strong, with expected growth in the region a potential reward worth fighting for. For now, while management's record for enhancing efficiency provides some comfort, intense competition and the scale of the battle ahead

Company overview International Consolidated Airlines Group S.A (IAG) is a major international airline company formed via the merger of the former British Airways and Spain's Iberia airline.

Class/type of shares if possible using the ISIN CODE Resulting situation after the triggering transaction Number of shares Number of voting rights % of voting rights Direct Direct Indirect Direct Indirect GI000A1JASX5 20,500,000* 20,500,000* nil 4.87%* 4.87%* *4,500,000 of the shares in the MoneySwap plc (equivalent to 1.07% of the voting rights) in which Graham Newall has an interest are owned by PowerCapital Exchange Corp, a company of which Graham Newall owns 9%

Class/type of shares if possible using the ISIN CODE Situation previous to the triggering transaction Number of Shares Number of Voting Rights GI000A1JASX5 24,500,000* 24,500,000* *4,500,000 of the shares in the MoneySwap plc (equivalent to 1.07% of the voting rights) in which Graham Newall has an interest are owned by PowerCapital Exchange Corp, a company of which Graham Newall owns 9%

NOTIFICATION OF MAJOR INTEREST IN SHARES,INTRESTING DEVELOPMENTS AHEAD.......

For the six month period revenue fell slightly to $1.43bn from $1.44bn, while pre-tax profits rose to $164m from $145m for the first half a year before. Interestingly, mobile revenues grew by 9%, including mobile data revenue growth of 36%. Total net debt at September 30th 2012 was about $1.59bn, compared with $1.39bn as at March 31st 2012. It has declared an interim dividend of 1.33 cents a share.

Cable and Wireless Communications, which owns telecoms operators, has maintained the guidance given at the full year, saying group EBITDA will be similar to 2011/12. In addition, it expects capital expenditure of around $350m for the full year ending March 31st 2013, with cash exceptional costs coming in between $30m and $35m. Dividend guidance for the full year is for four cents a share. Tony Rice, Chief Executive of Cable & Wireless Communications, said: "We have delivered a respectable performance in the first half. Despite a challenging period for the telecoms industry as a whole, our group has posted a balanced performance, with EBITDA [earnings before interest, tax, depreciation and amortisation] rising 2%."

SVG, the FTSE 250 private equity investor, has completed a fully underwritten placement of its remaining shares in Galaxy Entertainment Group, the Hong Kong listed casino and hotel operator. The value of the transaction for SVG totals £103.9m and equates to a £4.9m (1.8p per share) uplift on the September 2012 valuation of Galaxy of £99.0m. In a statement the firm revealed that through its direct holding, SVG Capital expects to receive net cash proceeds of around £88.1m.

Security group G4S has apparently paid the price for the London Olympics staffing fiasco that embarrassed Britain's government, missing out on contracts to run prisons. Not only did it fail to win any new contracts in the biggest round of prison privatisation in England and Wales so far, but it has also lost its contract to run Britain's first private prison The Ministry of Justice (MoJ) said the management of the Wolds prison in east Yorkshire would return to the public sector next July. In addition, it is also out of the running in a further two contracts to run five other jails that are going to be privatised by the government under the direction of new justice secretary, Chris Grayling.

The reported total assets of Vueling as at September 30th were €805m and in the nine months to September 30th it generated profits before tax of €59m. An application for authorisation of the offer, along with the prospectus and other legal documents, will be submitted within the next month to the Comisión Nacional del Mercardo de Valores (CNMV). Subject to authorisation from the CNMV, the offer will be launched to Vueling's shareholders in the first quarter of 2013 and, if accepted, the deal is expected to be completed in the second quarter of 2013. The offer will be subject to a minimum acceptance condition of 90% of the voting rights of the Vueling shares not already owned by Iberia. It is not subject to regulatory approval by the European Commission.

international Consolidated Airlines Group (IAG) is making a cash tender offer to buy 100 per cent of the share Vueling, the Spanish low-cost airline based in Barcelona. The offer will be launched exclusively on the Spanish stock markets and Veloz Holdco SLU has been created as an IAG subsidiary for this transaction. IAG's subsidiary Iberia owns 45.85% of Vueling's shares currently and the Iberia board has agreed not to tender them in the offer. This means that Iberia would retain its shareholding in Vueling with IAG seeking to acquire the remaining 54.15% The offer will be €7.00 per ordinary share of Vueling with the total cost of acquiring 54.15% anticipated to be €113m. It will be funded using internal IAG resources. IAG chief executive Willie Walsh said: "With its leading position in Barcelona, European growth strategy and low cost base, Vueling has much to offer IAG. It has significantly increased capacity while remaining profitable, despite the Spanish economic slowdown, and already has extensive commercial arrangements with Iberia. We would plan to retain the current Vueling management team."

Digital sports media group Perform has confirmed a three-year deal with Lega Serie to distribute the official Serie A TIM channel across digital platforms. The agreement extends a previous deal and includes the distribution of official Lega Serie A match content through ePlayer, Perform's video on demand (VOD) broadcast platform. In addition, the official Lega Serie A YouTube channel will be launched, and this will publish highlights of all the matches along with additional content. Maurizio Beretta, the President of Lega Serie A, said: "We are excited to renew this partnership with PERFORM and welcome YouTube as a distribution partner. Italian football fans are spending more time consuming content online and this partnership ensures that fans can catch up with all the best match action and news on the official Lega Serie A channel."

The UK's biggest cash and carry chain, Booker Group, has seen its share price suffer after revealing that the Office of Fair Trading has decided to refer the company's completed acquisition of Makro UK to the Competition Commission. In a statement the firm said: "Booker looks forward to working with the Competition Commission through the inquiry. Makro UK will continue to be held separate from the rest of Booker until the inquiry is complete."

Inter-dealer broker Tullett Prebon's interim management statement may be a downbeat affair, as the first half of the financial year saw a fall off in revenue. The silver lining was a statement about signs of a bit of a pick-up towards the end of the reporting period, so the focus will be on whether that trend continued into the third quarter.

For a relatively small part of the business, Rentokil Initial's often troublesome courier service, City Link, does seem to soak up a disproportionate amount of attention, and that may be the case again on Friday when the group makes a trading update. The good news for shareholders, however, is that management seems to be getting a grip on the situation at last. Inter-dealer broker Tullett Prebon's interim management statement may be a downbeat affair, as the first half of the financial year saw a fall off in revenue. The silver lining was a statement about signs of a bit of a pick-up towards the end of the reporting period, so the focus will be on whether that trend continued into the third quarter.

Divisional breakdown Breaking the performance down by division, among the Nationals total revenue fell by 12% to £135m with advertising revenues falling by 9%, circulation revenues falling by 18% and other revenues increasing by 5%. Among the regionals total revenue fell by 9% to £89m with advertising revenues falling by 13%, circulation revenues falling by 6% and other revenues increasing by 8%. Digital revenues grew by 8% for the period with Nationals in line with the prior year and regionals growing by 9%. Excluding Communicator Corp, which was acquired in December 2011, digital revenues fell by 1%.

its pension deficit increased during the period due to a fall in long term interest rates. The deficit increased by £73m from £210m at the half year to £283m at the end of September 2012. This reflected an increase in liabilities of £131m partially offset by an increase in asset values of £58m. Surprisingly, it hasn't yet been hit by any claims over phone hacking, as it explained: "Following the extensive publicity given to recent claims of alleged wrong doing by Trinity Mirror journalists, the Board can confirm that no such claims have yet been served, nor have any particulars of such claims been provided. As a result, we are today issuing notices requiring claim forms to be served." There was no update on its taking a minority interest in a in a new company comprising the assets of Northcliffe Media and Iliffe News & Media, as announced on October 29th.