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Sunday Papers: Capita in £700m fire sale to slash debt pile

And Melrose is set to raise stakes in battle for the FTSE 100 engineering giant GKN.

Sunday Papers: Capita in £700m fire sale to slash debt pile

Top stories

  • The Sunday Times: The embattled outsourcing giant Capita is plotting a £700 million fire sale of assets alongside a heavily discounted rights issue intended to raise a similar sum.
  • The Sunday Times: Melrose will raise its £7.3 billion offer for GKN this week in an effort to clinch the hostile takeover of the FTSE 100 engineer; the buyout firm is expected to offer GKN investors a bigger slice of the enlarged company rather than increasing the cash payout.
  • The Observer: The EU does not want Donald Trump’s tariffs to create a spiral of retaliation, but as Europe is a target a battle looks inevitable.
  • The Sunday Telegraph: Howard Schultz, the Starbucks boss, has defended the coffee shop chain’s past low tax payments in Britain, saying he has nothing to apologise for and claiming that it is “very hard to make money in the UK”.

Business and economics

  • The Sunday Times: Philip Hammond is set to bank a £10 billion windfall this week as he announces Britain’s smallest budget deficit since 2002.
  • The Sunday Telegraph: Firms in the aerospace, hospitality and manufacturing industries, together with business leaders in the North West, Northern Ireland and East Midlands, are the most bullish about Brexit.
  • The Sunday Telegraph: The AA has become the second-most shorted stock in London after its car-crash strategy revamp convinced hedge funds to up their bets against the troubled roadside rescue firm.
  • Mail on Sunday: Caffè Nero has not paid a penny in UK corporation tax for a decade despite selling around £2 billion of lattes and flat whites.
  • The Sunday Times: The world’s largest advertiser has warned that it may cut its online budget this year, turning up the heat on YouTube and Facebook; Marc Pritchard, chief brand officer of the consumer goods giant Procter & Gamble (P&G), said he was planning to run fewer digital commercials due to concerns that they are not reaching their intended targets.
  • Mail on Sunday: Employees at Harrods fear their pay could be cut under plans to overhaul sales commissions.
  • Mail on Sunday: An executive in charge of the division at Lloyds Banking Group that was supposed to help rescue troubled firms admitted the unit was out to make a profit.
  • The Sunday Telegraph: Embattled platinum miner Lonmin faces a fresh wave of protests ahead of its 109th and final AGM in London next week.
  • The Sunday Telegraph: Andrew Bailey, the head of the City watchdog, has called for a cultural overhaul in Britain’s finance industry following fresh controversy over gender pay gaps and in the aftermath of the Presidents Club scandal.
  • The Sunday Times: The boss of Beaufort Securities claims he pumped more cash into the broker only two days before it was shut down by the City watchdog over concerns it was insolvent.
  • The Sunday Times: Administrators to 10 Hilton hotels previously owned by the property tycoon Vincent Tchenguiz are set to put them back on sale after he launched a legal action over the portfolio’s collapse.

Share tips, comment and bids

  • Mail on Sunday (Midas share tips): Keep Tesco in your basket after £3.7 billion tie-up with Booker.
  • The Sunday Telegraph (Questor share tips): TI Fluid Systems needs to prove it can benefit from electric cars.
  • The Sunday Times: Intel is weighing a $100 billion-plus swoop on rival chip giant Broadcom in a move that would escalate the battle for dominance of the booming industry.
  • The Sunday Times: AJ Bell, one of the UK’s largest investment platforms, has appointed advisers to pursue a listing on the London Stock Exchange that is expected to value the company at upwards of £500 million.
  • The Sunday Telegraph: British copycat drug makers are on bid alert after Stada, the German pharma firm, revealed it is on the hunt for acquisitions in order to gain access to the UK generic drugs market.
  • The Sunday Telegraph (Comment): Why Trump's trade war with the EU and China could end in disaster - for all sides.
  • The Sunday Times (Comment): France wants to knock out the City, but does the EU?

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FTSE 100 hands back gains as Bank turns hawkish

by Michelle McGagh on Jun 21, 2018 at 17:05

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