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Wednesday Papers: Capita fails to win central government contracts

And sting in the tail for Melrose shareholders as they are left with bigger than expected debt from GKN takeover.

 
Wednesday Papers: Capita fails to win central government contracts

Top stories

  • Financial Times: Struggling outsourcing company Capita has not been awarded any central government contract since January profit warning that wiped £1 billion off its market capitalisation in a day.
  • The Times: GKN’s American would-be “white knight” need to be paid £67 million, hitting Melrose shareholders with an almost £220 million bill, far more than expected, it was revealed yesterday, in the bitter takeover battle for the British engineering firm.
  • The Daily Telegraph: C.banner International Holdings, the Chinese firm behind the iconic toy shop Hamleys, is in discussion with House of Fraser owner Nanjing Xinjiekou Department Store to buy a majority stake in the retailer.
  • Financial Times: Britain is considering its own satellite navigation system after Brussels snubbed it from the EU’s €10 billion Galileo project after Brexit.
  • Financial Times: French industrialist Vincent Bolloré was detained by police on Tuesday in a probe into suspected bribery of foreign officials in Africa.

Business and economics

  • Financial Times: Amazon has entered into a partnership with Volvo and General Motors that will allow the customers of Volvo or GM to use Amazon’s Key app, which facilitates keyless entry, remote locking and guest access.
  • The Times: Vice-president of the European Commission has said that the City can maintain access to European markets after Brexit if British regulations are similar enough to its own.
  • The Times: Major bourses in the US plunged on Tuesday in the wake of surge in yields on benchmark government bonds above 3% for the first time since 2014.
  • Financial Times: Streaming subscription sales, which saw a 45% growth last year, has becoming the single biggest revenue source for the global music industry, which expanded 8% in 2017.
  • Financial Times: Banco Santander’s stocks declined yesterday despite posting a 10% rise in first-quarter profits as disappointing results from its UK business overshadowed strong performances in most of its other operations.
  • The Times: Coca-Cola surpassed analysts’ expectations with a first-quarter profit of $1.4 billion, up by 16% compared with a year ago, but, warned that Britain’s new sugar tax will hit profits.
  • Financial Times: Bharti Airtel, India’s largest mobile operator, has registered an 82% decline in quarterly earnings, amid a price war launched by newcomer Reliance Jio.
  • Daily Mail: Car makers have warned against demonisation of diesel as it could break Britain's economic backbone leaving thousands of jobs at risk.
  • The Guardian: Another wave of job losses could hit high street in the wake of the final demise of Toys R Us and the fashion chain East.
  • Financial Times: Atlas Mara, the pan-African banking business, has hired John Staley, a 53-year-old South African banker, to become chief executive of the company.
  • The Guardian: Vernon Hill, the US founder of Metro Bank, has been re-elected as the chairman of the challenger bank, despite concerns over the lender’s payments to his wife’s firm.
  • Daily Mail: EN+’s chief executive Vladislav Solovyev and finance chief Andrey Yashchenko have both stepped down in the wake of US sanctions slapped on Russian oligarch Oleg Deripaska’s aluminium firm three weeks ago.
  • The Times: Grosvenor, which owns £6.8 billion of property assets worldwide, said that it will invest more abroad if Brexit uncertainties continue.
  • The Daily Telegraph: Apple will start transferring €13 billion to the Irish government within weeks, to pay for the tax bill slapped by the European Commission in 2016.
  • Financial Times: Inheritance tax receipts hit a record high of £5.2 billion in the last tax year, according to the HM Revenue & Customs’ latest monthly estimate.
  • The Daily Telegraph: Britain has agreed to a £4.4 billion acquisition of armoured vehicles from the Artec consortium for the army without a formal competition between suppliers.
  • The Times: A third of employees’ key council of John Lewis Partnership failed to support the leadership of Sir Charlie Mayfield in the retailer’s first secret ballot in more than a decade.
  • The Times: Neil Woodford’s Patient Capital Trust has placed two of its independent directors at senior roles at companies in which the fund owns a stake, raising concerns about their independence.
  • Financial Times: BP's chief executive Bob Dudley has been accused of issuing an “outrageous threat” after he called on Cambridge university’s £6.3 billion endowment fund to “come to their senses” and remain invested in fossil fuels.
  • Daily Mail: BHP has got an extra 66 days to settle a £34 billion fine stemming from Brazilian mine disaster three years ago.
  • Financial Times: Telecoms and cable group Altice has been fined €124.5 million by European competition authorities for implementing a takeover of PT Portugal before obtaining EU consent.

Share tips, comment and bids

  • The Daily Telegraph (Questor share tips): BUY Mediclinic International; HOLD Dignity; HOLD GB Group.
  • The Times (Tempus share tips): BUY London Stock Exchange Group; HOLD Astrazeneca.
  • The Daily Telegraph: Japanese drugmaker Takeda has made a fifth offer to Irish rival Shire as Takeda faces a race against time to secure any deal, with an approaching deadline to make a firm offer for Shire or walk away under UK takeover rules.
  • Financial Times: Walmart is close to acquiring Indian online marketplace Flipkart, in a deal that would reshape Indian retailing by pitting the US retailer against Amazon.
  • The Times: Royal Dutch Shell has sold its refining and marketing unit in Argentina to its Brazilian joint venture Raizen for $950 million.
  • Daily Mail: The Irish toys retailer Smyth's has made its first move into mainland Europe after it purchased 93 shops and four online stores for an undisclosed sum from Toys R Us’s German division.
  • The Daily Telegraph: Aim-listed provider of staff training software, Learning Technologies Group, has moved into the US market with the $150 million takeover of Massachusetts-based PeopleFluent.
  • The Times: Didi Chuxing, the owner of China’s most popular taxi-hailing app, is reportedly into a discussion about a stock market float that could value the company at up to $80 billion.
  • The Daily Telegraph: French investment company Ardian has sold its 49% stake in Britain’s fifth largest airport Luton, at which easyJet and Wizz Air are based, to AMP Capital.
  • The Daily Telegraph: A consortium of funds will take Aim-listed broadband infrastructure venture CityFibre private in a £538 million bet on demand for better internet access.
  • The Guardian (Comment): The start of the Brexit crunch; Theresa May has promoted the pyrrhic freedoms of a fantasy Brexit for too long.

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