Business ..the main headlines..........
Lehman Brothers fails in secret sell-off bid
Beleaguered US investment bank Lehman Brothers has failed in its bid to sell off a stake in itself, reports the Financial Times. After holding secret talks to sell up to 5o per cent of its stock earlier this month, the interested parties, Korea Development Bank and China's Citic Securities, have "walked away" in reaction to the high price sought. Also on the table is the potential sale of Lehman's real estate and asset management arms.
Gas prices rise on pipeline leak
Wholesale gas prices leapt almost 15 per cent yesterday, after a leak from a North Sea pipeline. The escape triggered concerns over winter supplies, with owner StatoilHydro, the Norwegian oil group, indicating that it might be offline until spring 2009. The UK will import around 40 per cent of its gas this year after running down its own North Sea reserves, and has inadequate storage facilities compared to other European countries.
Persimmon first-half profits slump
Persimmon, the biggest housebuilder in the UK, announced first-half profit fell 87 per cent on a sales drop of 34 per cent. The company is suffering as house prices decline at their fastest rate for 25 years, amid a dearth of mortgage lending. Chairman John White said that he doesn't expect a recovery any time soon, after the first set of six month results from a publicly traded UK homebuilder.
Government finances suffer in July
Public sector finances in the UK deteriorated in July, meaning the government is likely to miss its borrowing target this year "by some distance", according to a senior economic figure. Hatal Mehta, senior adviser to the Ernst & Young Item Club, said borrowing this year was likely to exceed the record level of £51bn posted in 1993. Although rising oil prices have added £2bn to tax receipts so far this year, it is not enough to offset the falling corporate tax take.
China overtakes America in Japanese imports
China has become Japan's biggest export customer, according to figures released by the Japanese Finance Ministry. In a sign of its current economic woes, exports to the US slumped 11.5 per cent in July, while shipments to China grew 16.8 per cent to a record 1.29tr yen. This means that the value of exports to China exceeded those to the US for the first time since Japanese government figures began in 1950.
Lone Star in sub prime takeover
US private equity group Lone Star is to buy sub prime victim IKB. The German bank, an early victim of the credit crunch, has been involved in protracted bid negotiations, since it ran into re-financing problems last July. State-owned shareholder KfW has agreed to sell its 91 per cent stake to the private equity player, which has a history of making acquisitions in Germany.
...in brief..................
Arms deal for BAE and Carnival for ex-BBC executive
Arms supplier BAE Systems has announced a 15 year deal with the MOD to supply it with ammunition. The £3bn contract will safeguard jobs and allow the company to modernise a number of outdated manufacturing facilities around the UK............
ArcelorMittal, the largest steel group in the world, has bought London Mining's Brazilian iron ore business. Lakshmi Mittal's metals group is paying a huge premium for the business - 50 per cent more than the parent's total value - to incease its self-sufficiency............
Department store House of Fraser has increased its earnings and profits, despite harsh conditions on the high street. The department store chain, bought by a Baugur-led consortium in 2006, saw sales up 2.9 per cent for the half year to July 26th, boosted by new stores............
HBOS has been forced to freeze the accounts of its chief executive Andy Hornby, after discovering financial irregularities. A thief is believed to have stolen his identity and withdrawn funds from his account, stealing as much as £7000 in a day............
London-listed Kazakh miner ENRC has rejected a request from Kazakhmys for a seat on the board. The latter has built a 25 per cent stake in its rival, which has seen profits triple on strong ferrochrome demand from steelmakers............
Former BBC executive Gareth Neame has sold his production company Carnival Films to US broadcaster NBC Universal. The American giant is thought to have paid around £30m for the company, behind hit programmes such as Hotel Babylon and Harley street............
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