SABMiller Shares Soar On £75bn Takeover Talk

Shares in SABMiller soared by almost 12% at one stage on the FTSE 100 on Monday following reports it is now a takeover target itself, following a failed bid for Heineken.

News of SAB's bid for the Dutch firm emerged on Sunday, with its failure apparently encouraging the world's largest brewer Anheuser-Busch InBev (AB InBev) to step up its own interest in SAB.

The maker of Heineken and Amstel beers said the proposal from SAB was "non-actionable".

The decision was made by the De-Carvalho family, which controls just over 50% of Heineken's stock.

Heineken rejected the idea of takeover talks with SABMiller

Heineken's statement said: "The Heineken family has informed SABMiller, Heineken and Heineken Holding of its intention to preserve the heritage and identity of Heineken as an independent company".

London-listed SABMiller - the world's number two brewer which owns the Peroni and Grolsch brands - would have created a combined European firm worth more than £80bn under its proposals to take over Heineken.

In the wake of the rejection, the Wall Street Journal later reported that AB InBev was seeking finance for a £75bn move on SAB.

It cited a source at the company as saying it was looking to secure funds ahead of a formal approach.

23.33 | 0 komentar | Read More

Vodafone 'Plotted Joint Takeover Of Phones 4u'

By Mark Kleinman, City Editor

Vodafone was in talks about a joint takeover of Phones 4u as recently as two months ago but abandoned the proposed deal without explanation.

Sky News has learnt that Vodafone executives discussed at a meeting in June with financial and legal advisers to Phones 4u a takeover of the chain by the mobile phone network along with EE, its rival.

The deal would have been structured as a 50:50 acquisition of Phones 4u, with Vodafone encouraging the retailer's legal team to "review how this could be achieved given the competition constraints", according to a person close to the talks.

A subsequent discussion between Vodafone and Phones 4u indicated that Vodafone might pursue a takeover on its own if EE did not wish to participate, the person added.

On July 8, while parallel discussions were taking place about extending Vodafone's distribution contract with Phones 4u, the mobile network's UK executives made a presentation to group colleagues entitled "Phones 4u - Partner of Choice".

Several weeks later, Vodafone notified Phones 4u that it would not be renewing their agreement, while no further talks about a takeover of the company were held.

The revelations shed new light on the final months of Phones 4u's existence as a standalone company, with its future now under threat following decisions by Vodafone and EE to terminate distribution agreements next year.

A Vodafone spokesman acknowledged that the takeover discussions had taken place but said: "For regulatory and commercial reasons the acquisition of Phones 4u was not an option.

"The UK management team took legal advice in the early summer to review its potential but it was quickly dismissed given the advice we received. 

"We have made our position on the commercial negotiations with Phones 4u very clear and have nothing more to add.

"The decision to terminate our contract with them was made independently by the UK management team on purely commercial reasons following extensive negotiations."

The news puts in jeopardy as many as 5,500 jobs at Phones 4u, although as Sky News revealed earlier on Monday, its larger rival Dixons Carphone is drawing up plans that could see many hundreds of those staff retain their roles or fill other vacancies at the UK's biggest mobile phone retailer.

Dixons Carphone has tweeted support for Phones 4u workers

Phones 4u's crisis sparked an unusually hostile bout of corporate mud-slinging, with John Caudwell, the retailer's founder, accusing Vodafone of being a "ruthless partner".

Currys and PC World shops currently employ just over 800 Phones 4u staff, with Dixons Carphone keen to offer all of them jobs at the rebranded Carphone Warehouse concessions.

The timing of a more detailed statement by Dixons Carphone will depend upon the progress of discussions between it and PricewaterhouseCoopers, which was designated by Phones 4u directors as the company's administrator on Sunday.

23.33 | 0 komentar | Read More

Retailer Phones 4u 'Forced Into Administration'

Phones 4u stores are closed with thousands of jobs at risk after the retailer said it was being forced into administration by network operator EE's decision to join Vodafone in cutting ties with the firm.

The retailer, which employs 5,596 people, said its 550 standalone stores would be shut until administrators decide on whether the business can reopen for trading.

Inquiry lines were still operational though the Phones 4u customer service line referred callers to the website, which has been taken offline.

The company said the decision by EE not to renew its current contract, which is due to end in September next year, was a "complete shock" and meant it would be left without a single network partner after Vodafone said earlier this month that it would not extend its agreement.

Potential store customers were greeted by closed doors and a short notice

Phones 4u said it has a healthy balance sheet with profits of more than £100m but had no option but to go into administration.

However, workers facing the threat of redundancy have been given hope by rival firm Dixons Carphone - Sky News has learnt that the business is preparing to highlight at least 1,500 vacancies at Carphone Warehouse stores for which Phones 4u staff would be eligible.

Phones 4u executive David Kassler said: "Today is a very sad day for our customers and our staff.

The retailer said the decisions of EE and Vodafone were a 'complete shock'

"If the mobile network operators decline to supply us, we do not have a business.

"A good company making profits of over £100m, employing thousands of decent people has been forced into administration.

"The great service we have provided should have guaranteed a strong future, but unfortunately our network partners have decided otherwise.

"The ultimate result will be less competition, less choice and higher prices for mobile customers in UK."

Staff were asked to report to work as normal on Monday for a management briefing.

Phones 4u said all mobile contracts bought through Phones 4u would remain unaffected and the networks would continue to provide mobile services to these customers.

Customers were also told that orders which were not dispatched in advance of the decision will not be honoured, though full refunds will be given.

The formal process of appointing PwC as the administrator was expected to take place later on Monday.

The business was set up by John Caudwell, who sold it in 2006 for £1.5bn

The announcement helped shares in Dixons Carphone rise 4% in early trading.

Stefano Quadrio Curzio of BC Partners, Phones 4u's private equity owner, said: "Our overriding concern is for all the dedicated hard-working employees of Phones 4u at a time of uncertainty for the company.

"Vodafone has acted in exactly the opposite way to what they had consistently indicated to the management of Phones 4u over more than six months.

"Their behaviour appears to have been designed to inflict the maximum damage to their partner of 15 years, giving Phones 4u no time to develop commercial alternatives.

"EE's decision on Friday is surprising in the context of a contract that has more than a year to run and leaves the board with no alternative but to seek the Administrator's protection in the interests of all its stakeholders."

A spokesperson for EE said its decision not to extend its contract with Phones 4u was part of a focus on supplying customers directly and questions surrounding the "long-term viability" of the Phones 4u business. 

Vodafone said it was "saddened" to read about Phones 4u's plight and added: "We strongly reject any suggestion that we behaved inappropriately at any stage during our negotiations with Phones 4u."

It has been revealed that Vodafone was in talks about a joint takeover of Phones 4U as recently as two months ago but abandoned the proposed deal without explanation.

Sky News has learnt that Vodafone executives discussed at a meeting in June with financial and legal advisers to Phones4U a takeover of the chain by the mobile phone network along with EE, its rival.

23.33 | 0 komentar | Read More

Alibaba Flotation On Course For World Record

China's biggest online retailer appears on course to break the record for the biggest share sale of all time this week.

Expectations are growing that Alibaba will raise its price target above the planned $60-$66-per-share range - with sources, said to be familiar with the deal, telling the Reuters news agency there was "overwhelming" demand for the stock.

It was reported last week that the flotation, which is expected to take place on Thursday on the New York Stock Exchange, was already over-subscribed.

The initial public offering (IPO) was first expected to raise up to $21bn - just shy of the all-time record of $22.1bn set by the Agricultural Bank of China in 2010 - giving it a total market value roughly in line with that of Amazon.com's current market capitalisation.

But speculation has risen the retailer could look to cash in on strong interest by raising the price range, despite the potential risks that would place on its market debut.

It confirmed three weeks ago that second-quarter profits had tripled to £1.2bn on the back of soaring revenues, with spending via mobile devices rising almost four-fold.

Kelland Willis, analyst at Forrester Research, told the AFP news agency: "When investors see growth, they get excited."

He pointed to the 150% gains of JD.com, Alibaba's main Chinese rival, which went public in May.

Other experts were more cautious - some citing concerns on governance.

Portfolio manager at Meeschaert Financial Services, Gregori Volokhine said of Alibaba: "They have moved prudently, because it's very difficult to know in advance the appetite of US institutional investors.

"People will be cautious because a lot of investors were burned by Facebook," he noted, recalling the 2012 offering which saw a sharp drop from the opening price because of a glitch.

The IPO, while helping fund Alibaba's planned expansion, is also due to deliver a handsome return for Yahoo!

The internet firm, which bought 40% cent of Alibaba in 2005 for $1bn (£600m), sold almost half of its stake in 2012 but still netted $7.6bn from that.

Its plans to reduce its shareholding further in the flotation is forecast to net it at least another $9bn - money it can use to fund its own diversification.

23.33 | 0 komentar | Read More

Water Firms Respond To Complaint Challenge

Complaints about water companies have fallen for the sixth straight year - and by a greater margin - after the industry was urged to do more to improve customer service.

The Consumer Council for Water (CCWater) said the vast majority of firms had risen to its challenge in the last financial year with complaints during 2013/14 falling 18% on the previous 12 months.

However, it said the total equated to more than 300 daily, standing at 123,218 written complaints, with more than half relating to billing and other charging matters.

The UK's household water and sewerage industry is a geographical monopoly, unlike the regime for energy firms which gives consumers the power to change supplier.

Tony Smith, chief executive of CCWater, said: "Most water companies have responded well to our challenge to improve performance, with complaints now at their lowest level since we were formed in 2005.

"But affordability remains a huge challenge for the industry, with one in five customers telling us their water bill is not affordable.

"Water companies and the regulator Ofwat must deliver prices for the next five years that customers can afford and find acceptable or risk a backlash from struggling households".

Ofwat confirmed last month that its price control plans for all 18 water companies in England and Wales should see bills falling by 5% on average, in real terms, between 2015 and 2020.

Southern Water and South East Water were singled out by CCWater for being the two worst performing companies when complaints are measured per 10,000 connected properties.

The report said: "We have repeatedly told them that they need to bring themselves into line with the rest of the industry, but they continue to lag significantly behind".

Four companies - South West Water, Affinity Water, Severn Trent Water and Dwr Cymru Welsh Water - bucked the industry trend and reported an overall increase in complaints.

Wessex Water, Portsmouth Water and Cambridge Water were hailed as the industry's best performers.

Steve George, customer services director at South East Water, said: "We are pleased to see the downward trend continue during 2014 but we recognise that there is still more to do.

"Over the past year we have been working hard to integrate the new communications technologies into customer service".

Darren Bentham, Southern Water's chief customer officer, said: "While our performance in 2013/14 saw a big improvement, we are still lower down the results table than we want to be - and where our customers want us to be.

"However, we are continuing to make changes which ensure we focus on our customers - from training, to new systems and an improved website".

23.33 | 0 komentar | Read More

LG Execs 'Destroyed' Samsung Washing Machines

Samsung has demanded an investigation after it accused senior executives at LG Electronics of deliberately "destroying" high-end washing machines at stores in Germany.

The company claims its rival vandalised machines in Berlin, with one of the alleged incidents taking place before the massive IFA consumer electronics show earlier this month.

"The people in question have been implicated in deliberately destroying Samsung washing machines displayed at retail stores in Berlin, Germany," said a statement from the company.

Samsung has asked the prosecutor's office in Seoul to investigate. Both companies are based in South Korea.

"It is very unfortunate that Samsung had to request that a high-ranking executive be investigated by the nation's legal authorities but ... we had to get to the bottom of this incident," said the company.

The two companies are also fierce rivals in the TV sector

LG admitted damage was caused when employees visited a Berlin store, but said it happened accidentally as part of routine market research.

LG paid for the damage as part of negotiations with police and has since claimed the quality of the machines' hinges was "weak" - something Samsung strongly denies.

Jo Seong-jin, head of the LG's home appliances division, was one of the people named in Samsung's investigation request, said an LG spokeswoman.

"If our company had an intention to destroy products of a certain company to tarnish the image of the product, it would be commonsensical to not have our executives to directly carry out such acts," said LG.

"We hope that this is not an attempt to damage our reputation."

Samsung and LG are fierce rivals and also compete in the phone, television and home appliance sectors.

They have had previous disputes over fridge capacity and South Korean air conditioner market share.

23.33 | 0 komentar | Read More

Salmond Accuses Cameron Of 'Scaremongering'

What Happens If Scotland Leaves The Union?

Updated: 2:00pm UK, Tuesday 09 September 2014

Supporters of both sides of the Scotland referendum debate are mounting a final push for votes before the ballot on September 18. Sky News looks at what will happen if Scotland votes Yes to exit the UK:

:: 1.  When would Scotland become independent?

The Scottish Government has set a date 18 months from now, March 24, 2016, for Scotland's independence day.

:: 2. What would happen immediately after a Yes vote?

The first step on the morning after the result comes in would involve the forming of teams from both the Yes and No camps to take part in behind-the-scenes negotiations. SNP leader Alex Salmond has already indicated his deputy Nicola Sturgeon would lead the talks for the Scottish nationalists. It is not yet known who would spearhead the Westminster team.

:: 3. What amendments would there be to the constitution?

The negotiating teams would devise a new constitution for Scotland and dissolve the 1707 Act Of Union.

:: 4. What would happen to the Queen?

The Yes campaign has said Her Majesty would stay as monarch so it would not be surprising if Mr Salmond seeks an audience with the Queen in the days and weeks after the vote.

:: 5. Would Scotland take part in the May 2015 General Election?

Scottish voters would still be able to take part, but their representatives would only potentially serve a 10-month term in office.

:: 6. What currency would Scotland use?

That is still being thrashed out and yet to be decided. The three main Westminster parties - the Conservatives, Labour and the Liberal Democrats - have ruled out a currency union, although Mr Salmond insists an independent Scotland would keep the pound.

:: 7. How much of the UK national debt would be transferred to Scotland?

This is not yet known, but it is likely to be worked out on a per capita share - based on population.

:: 8. What would happen to Scotland's standing in global affairs?

Scotland would have to negotiate its own entry into the European Union and Nato, and the population would have to decide whether they want to have the euro.

:: 9. What effect would independence have on Scotland's defence force?

The issue of defence is probably one of the most emotive - and uncertain. Scotland is likely to have its own independent defence force, in time, depending on practicalities and finances, for it has its North Sea oil and fishing industries to protect. Scottish nationalists are opposed to having the Trident nuclear deterrent and would want to see it removed from Faslane, on the west coast of Scotland, as soon as possible. However, Nato is fundamentally a nuclear alliance, and if Scotland struggles to become a member of Nato, it is likely to struggle to join the EU too, which would have a big impact on the Scottish economy. There is also the matter of service personnel - some of which will be currently serving in historic English regiments. Any division of troops north and south of the border would take years.

:: 10. What would independence mean in terms of travelling across the Scotland-England border?

An independent Scotland would control its own borders. The SNP would like to see an open border, but Home Secretary Theresa May has already warned she will not allow Scotland to be used as a back door for immigrants getting into England if Scotland adopts a looser immigration policy. So, we could see passport controls on the border between the two countries.

:: 11. Would Scottish citizens need new passports?

A lot depends on whether Scotland joins the EU. Scottish citizens would be entitled to a Scottish passport, but a UK passport would still be valid until it expires. British citizens who were habitual residents in Scotland would be automatically considered Scottish citizens.

:: 12. What would happen to benefits and taxes?

Benefits and taxes will become the responsibility of the new Scottish government. In its white paper on Scotland's independence it says the Scottish Parliament will ensure that the personal tax allowance and tax credits increase in line with inflation.

23.33 | 0 komentar | Read More

CBI Denies Govt Pressure On Scotland Vote

By Ian King, Business Presenter

The president of the Confederation of British Industry has insisted no pressure has been exerted on businesses by the Government to speak out on the Scottish referendum debate.

The last week has seen numerous interventions from business leaders in the oil, retail and telecoms sectors warning of the consequences of a Yes vote.

Many in 'Yes Scotland' suspect the involvement of the Prime Minister, particularly since he hosted a reception at 10 Downing Street last week for business leaders, during which he urged them to speak out.

But Sir Mike Rake, who is chairman of BT Group and deputy chairman of Barclays, insisted business leaders were speaking out of their own volition and not party to a scaremongering campaign.

He told Sky News: "What you've seen is a spontaneous outburst of real and genuine concern by companies large, medium and small, across both sides of the border as to what this might mean.

Alex Salmond has accused David Cameron of scaremongering

"You've seen industry groups coming together, really concerned that we seem to have failed to get in front of the Scottish people enough of the economic facts and risks, really, and uncertainties that will exist if there was to be a Yes vote.

"Scotland, of course, would survive - but we're talking a significant period of real uncertainty, a real threat to the recovery that we've got going, before we've been able to deliver the benefits of that recovery to the majority of people."

Sir Mike insisted that, despite the strong number of small and medium-sized enterprises (SMEs) in Scotland publicly backing the Yes campaign, there was also strong support among small businesses for staying in the United Kingdom.

He added: "The vast majority of businesses right across the United Kingdom want Scotland to stay within the UK.

"Why? Because we have a union of 62 million people, one currency, one set of rules, one set of business principles and I think it makes eminent sense to the business community that we should remain together as part of a reformed European Union.

"Some very small companies obviously have a different positioning, they might well have a different view about independence, they may feel that this will have less impact on them if they are in local trade than if they were to be a larger company with cross-border trade.

"All I would say to them is that there are indirect risks to investment, uncertainty for the Scottish economy, that could impact them - and indeed the Federation for Small Businesses came up this morning with a review that shows that actually a large number of SMEs in Scotland are increasingly concerned about the impact, the uncertainty and the potential increase in costs that could impact them both as citizens and as businesses."

Sir Mike said he was unconvinced by some of the pro-business policies, such as a cut in corporation tax, that the Scottish government has promised in the event of a Yes vote.

He said this included a cut in Air Passenger Duty – a policy that has been welcomed by Willie Walsh, chief executive of International Airlines Group, the owner of British Airways.

He went on: "That's a very specific factor that would benefit the airline industry [but] of itself does not, I'm afraid, make for a stable growing economy.

"The fact is that right across the UK, including in Scotland, we are growing now and that's healthy, but we need to make sure that we continue to grow and it would be particularly unfortunate to impact that growth with the inevitable uncertainty that a Yes vote would create.

"I don't actually think that's the right answer and I think one of the biggest problems for business is that we have very little clarity on what the policies would be."

23.33 | 0 komentar | Read More

Sports Bar Firm Rileys Calls In Administrator

By Mark Kleinman, City Editor

Rileys, one of Britain's biggest sports bar operators, has fallen into administration in a move which threatens more than 500 jobs.

Sky News has learnt that Deloitte has been appointed as administrator to Rileys Sports Bars Limited just two months after its owner, Greybull Capital, put the company up for sale.

It is the second time in two years that Rileys has been forced to seek protection from its creditors, with Greybull acquiring the business through a controversial process known as pre-pack administration.

Just under 125 Rileys employees, including 20 from the company's head office in Milton Keynes, were made redundant on Monday afternoon, according to a statement from Deloitte issued in response to an enquiry from Sky News.

The chain, which owns the well-known Sports Cafe site on Haymarket in Central London, traces its roots back to 1878, and specialises in snooker and pool, as well as darts, bingo and broadcasting of live sporting events.

Deloitte said that it would "continue to trade Rileys whilst they investigate options to secure the best outcome for all of the Company's creditors".

"On appointment it has been necessary to close 15 sites.  Unfortunately this has resulted in 104 redundancies at those sites, with a further 20 at the Company's head office."

Rob Harding, a partner at Deloitte and the joint administrator, said:

"Following our appointment it has been necessary for us to implement certain cuts immediately. 

"We are now working to stabilise the business following our appointment whilst we consider our options for securing the best outcome for the Company's creditors. 

"The remaining sites continue to trade as normal and we appreciate the co-operation and support of the Company's employees, landlords, customers and other key stakeholders."

Greybull had appointed Global Leisure Partners, an advisory firm, earlier in the summer to seek new investors for Rileys, which had seen an improvement in its performance.

23.33 | 0 komentar | Read More

Microsoft Buys Minecraft's Mojang For $2.5bn

Microsoft has confirmed it is buying the maker of Minecraft, with the game's creator leaving the company because he is a "nerd", not a CEO.

The US tech giant is stumping up $2.5bn (£1.5bn) for Sweden-based Mojang.

Minecraft lets users build and explore a virtual Lego-like world and has been downloaded 100 million times on PCs alone since it launched in 2009.

It is also the most popular online Xbox game and is the top paid-for Apple and Android app in the US. The hit game will continue to be available on all its current platforms.

Markus 'Notch' Persson, writing on his blog, said he never made the game to have a huge hit and expressed frustration at having become a "symbol".

"I'm not an entrepreneur. I'm not a CEO. I'm a nerdy computer programmer who likes to have opinions on Twitter," he said.

Notch said he intends to go back to "small web experiments".

Addressing criticisms from some fans that he is "selling out", Notch signs off: "It's not about the money. It's about my sanity."

All three of Mojang's founders are to leave the company.

Microsoft said its cloud and mobile technologies would bring "richer and faster worlds, more powerful development tools, and more opportunities to connect across the Minecraft community".

Mojang CEO Carl Manneh: "As the founders move on to start new projects, we believe the high level of creativity from the community will continue the game's success far into the future."

The scale and flexibility of the game have seen users create scale replicas of the UK and Westeros, from the Game of Thrones series.

Considering the multibillion-dollar purchase of Mojang, Microsoft will almost certainly be looking for its developers to create for "a new hit game" exclusive to Microsoft platforms, said Ryan King, editor of Video Games at Imagine Publishing.

23.33 | 0 komentar | Read More