Northumbrian Water gets bid offer

1 July 2011 Last updated at 08:23 GMT Northumbrian supplies water in the north east of England Northumbrian Water has confirmed that it has received a takeover proposal from Hong Kong-based Cheung Kong Infrastructure Holdings (CKI).

Northumbrian said there was "no certainty" that CKI would move ahead with a formal bid.

Based in Durham, Northumbrian supplies water in the north-east of England. It also owns Essex & Suffolk Water.

CKI has water supply interests around the world. It also has a 50% stake in the Seabank Power Station near Bristol.

CKI is part of the Hong Kong conglomerate Cheung Kong Holdings, which is owned and run by Li Ka Shing, the world's 11th richest man. His eldest son, Victor Li is chairman of CKI.

Northumbrian said a further announcement would be made "when appropriate".

Global player

Last month, Northumbrian reported a 6.3% rise in full-year profits for the year to the end of March.

Its pre-tax profits for the 12 months totalled ?181m, compared with ?170m a year earlier, and company said the increase was due in part to higher water and sewerage charges.

Its main business provides water and sewerage services to 2.6 million people in Northumberland, Tyne and Wear, County Durham and parts of North Yorkshire.

Essex & Suffolk Water supplies 1.8 million people in the south-east of England.

CKI's business interests cover the water, energy and transportation sectors.

In addition to Hong Kong and the UK, it has investments in mainland China, Australia, Canada, New Zealand and the Philippines.

Listed on the Hong Kong Stock Exchange, its market capitalisation is about 80bn Hong Kong dollars ($10.2bn; ?6.4bn).

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Ofgem to probe energy firm offer

22 June 2011 Last updated at 11:53 GMT Gas prices will be going up by 19% and electricity by 10% Energy watchdog Ofgem has launched an inquiry into a "potentially misleading" offer promoted by Scottish Power after it announced 19% price rises.

The firm had guaranteed prices would remain a minimum of 1% per year below its standard monthly direct debit prices until 30 September, 2012.

But Ofgem insisted the small print did not match up to the promise.

Scottish Power said: "We believe that all figures that have been quoted by us are accurate."

The regulator said it also wanted to press ahead with radical market reforms and force the so-called "big six" energy suppliers to simplify tariffs.

British Gas, Npower, E.ON Energy, EDF Energy, Scottish Power and Scottish and Southern Energy have all signed up to the reform process.

Ofgem said it would be using its consumer protection powers to investigate the promotional offer which was announced by Scottish Power when it revealed it would be putting up prices in August.

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Under the Scottish Power Direct October 2012 Offer, the company guaranteed prices would remain a minimum of 1% per year below its standard monthly direct debit gas and electricity prices until 30 September, 2012.

The watchdog outlined that the investigation would focus on the claim of ?459 savings from the Direct October 2012 offer.

The increases, which will see the cost of gas go up by 19% and the cost of electricity by 10%, will affect some 2.4 million householders in the UK.

Scottish Power had blamed a 30% rise in wholesale gas costs for the increases.

In response to the launch of the inquiry, the utility company said: "We agree that information about all energy tariffs across the market should be as clear as possible and we will fully co-operate with the Ofgem investigation.

"The tariff in question was a very limited offer with considerably discounted prices, which is now fully subscribed.

Alistair Buchanan, the chief executive of Ofgem, says consumers must feel confident that energy companies are "playing straight" with them

"However, there are a number of similar products still available on the market from competitors. We believe that all figures that have been quoted by us are accurate. "

Consumer Focus said it welcomed Ofgem's announcement and added that the utilities market needed to change.

The body's chief executive, Mike O'Connor, said: "The fact that Scottish Power was trying to push a dubious product to cover for their price rise shows just how far the penny needs to drop.

"Energy suppliers have been in denial about their poor reputation, about the health of the market and about the scale of changes needed to put it right. This market needs to change.

"Ofgem has taken another step today and we welcome it."

Meanwhile it was confirmed the six energy suppliers will be questioned by the Scottish Parliament's economy committee next week.

Committee convener and Tory MSP Gavin Brown said he wanted to hear the justification for price rises, adding: "It is important the committee is convinced that the suppliers and the regulator are doing all that they can to minimise the impact of these price rises on low income families and not to prejudice a return to economic growth."

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Offer made to Arch Cru investors

21 June 2011 Last updated at 11:32 GMT The case surrounds worries about a series of complex investments Investors in complex funds that were suspended in March 2009 are to be offered a share of a ?54m package, the Financial Services Authority has said.

An estimated 20,000 people are to be offered the payout in relation to funds under the CF Arch Cru banner.

The investment funds and diversified funds were suspended after a surge in outflows prompted fears that more withdrawals could not be met.

Investors can still make a claim for compensation for mis-selling.

In some cases, the investments were sold as "low-risk" and investors can still argue their case to the Financial Ombudsman if they feel they were victims of mis-selling by independent financial advisers.

'Fair'

Investors were locked into losses when the funds were suspended.

The settlement comes from the fund administrator, Capita Financial Managers Ltd, as well as the Bank of New York Mellon Trust and Depositary Ltd, and HSBC bank.

The ?54m package has been described as "fair and reasonable" by the City watchdog, and in the best interests of investors.

Investors will be able to decide whether to accept the payout, which would prevent them taking any further action against the three companies but not against any intermediaries.

The payout, together with previous payments and the assets left in the funds, would account for 70% of the value of the funds when they were suspended, the Financial Services Authority (FSA) said.

Investors will be contacted by Capita with further information on how the payment scheme will work by the end of August.

Meanwhile, the FSA said it was still looking into the role of other parties in relation to these funds.

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LVMH rules out offer for Hermes

10 June 2011 Last updated at 09:53 GMT Hermes saw profits surge last year on the back of demand for luxury goods in developing markets Shares in French luxury goods group Hermes have fallen more than 5% after rival LVMH said it had "no intention" of launching a takeover bid.

There had been widespread speculation that LVMH, the world's largest luxury goods company and owner of Louis Vuitton and Moet & Chandon champagne, may make a bid for Hermes.

LVMH's denial was sparked by reports on Thursday that a takeover bid was imminent.

It already owns about 20% of the group.

"The LVMH group has absolutely no intention of making a bid for Hermes," a spokesman for the company said.

Record revenue

Sales at both groups have risen sharply, partly thanks to surging demand in developing economies such as China.

Hermes made a net profit of 421m euros ($610m; ?374m) in 2010, a rise of almost 50% on the previous year, with sales rising by a quarter to 2.4bn euros.

It plans to open 13 new stores this year.

LVMH saw record revenues of more than 20bn euros in 2010, with operating profit up by almost a third.

Earlier this year, the group agreed a 3.7bn euros deal to take over Italian jeweller Bulgari.

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Groupon files $750m share offer

2 June 2011 Last updated at 22:34 GMT Groupon has 83 million members around the world Daily discount website Groupon is seeking to raise up to $750m (?460m) in an initial public offering (IPO).

It is the latest move by an internet company seeking to cash in on investor appetite for social media firms.

Last month, business networking site LinkedIn saw its shares more than double in value on their first day of trading after the company went public.

IPOs are when companies list their shares on the stock market for the first time.

Groupon offers daily discounts to members on items ranging from meals out and beauty treatments to flying lessons.

The offers are typically available for a set period and for a limited number of buyers.

Groupon then takes a commission of 30-50% from the merchants who provide the services.

The company has 83 million members in 43 countries and employs more than 7,000 staff.

'Twists and turns'

Groupon was founded in November 2008 and is yet to make a net profit.

It brought in revenues of $644.7m in the first quarter of 2011, but made a net loss of $146.5m after investing in growth, especially overseas.

In December it turned down a $6bn takeover offer from Google.

"As with any business in a 30-month-old industry, the path to success will have twists and turns, moments of brilliance and other moments of sheer stupidity," Groupon chief executive Andrew Mason said in a letter to potential shareholders that was attached to the IPO filing.

The filing did not specify the number of shares to be sold, the price range, or the stock exchange it would list on.

But it did say shares would trade under the symbol "GRPN".

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Man City in stadium naming offer

19 May 2011 Last updated at 15:51 GMT Success on the pitch has made Manchester City a more attractive to investors Manchester City has confirmed that it is looking to sell naming rights for its City of Manchester Stadium.

Chairman Khaldoon al-Mubarak said the club's FA Cup Final victory and Champions League success had made the club more attractive to sponsors.

He said they would be "exploring every single commercial avenue".

The club has qualified for the first time for the European Champions League and won its first trophy for 35 years with the 1-0 FA Cup victory over Stoke.

The chairman said: "I believe we have a bigger commercial opportunity, including naming rights all for the benefit of maintaining the strength of the squad.

"And also for maintaining the financial strength of this company."

City is owned by billionaire Sheikh Mansour who has warned fans that there will not be a major spending spree on new players.

Athletics venue

Originally designed as part of Manchester's bid to host the 2000 Olympics, the stadium was the centrepiece of the city's 2002 Commonwealth Games.

After the Games, it was converted for use by Manchester City, and the club moved to it from its former Maine Road stadium in Moss Side.

The ground is owned by Manchester City Council, not the football club.

A Manchester Council spokesman declined to comment on whether the council would get a share of the naming rights deal.

A victory parade celebrating the club's FA Cup win will take place on Monday at 1800 BST, starting at Manchester Town Hall.

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