PRESS DIGEST - British Business Press - May 24

Reuters: [2008-05-24 05:54:00]

The Times

BUNCEFIELD OIL FIRE WAS RESULT OF NEGLIGENCE BY TOTAL.

The Buncefield oil fire was the result of negligence by Total<TOTF.PA>, a High Court judge ruled on Friday. Mr Justice David Steel made the ruling during a preliminary hearing of a case in which victims of Britain's biggest peacetime explosion are suing Total and others for up to one billion pounds in damages. The court heard that Total and Hertfordshire Oil Storage Ltd had previously conceded that negligence was responsible for the huge fire at the Hertfordshire depot.

CONSTRUCTION & PROPERTY

Oak Holdings said it expects to secure a development loan to take its 350 million pound YES! project to completion. The property development and consultancy group said its directors are exploring funding opportunities for YES! which involves a leisure-based resort, activity and convention destination in South Yorkshire.

RETAILING

John Lewis Partnership have announced that sales in the week to May 17 at its 26 UK department stores dropped 1.8 per cent year-on-year to 46.5 million pounds. However, sales at its chain of 187 Waitrose supermarkets increased 7.8 per cent to reach 78.2 million pounds. The staff-owned retailer's sales rose four per cent to 124.7 million pounds.

The Daily Telegraph

MARSTON'S STEERS CLEAR OF PROPERTY PATH DESPITE FALLS

Marston's<MARS.L> has reported a 19 per cent fall in pre-tax profits due to share buybacks, tough trading conditions and higher costs. However, the company batted away suggestions that it would follow rivals planning to sell off their property estates. The pub operator and brewer, which bought back 150 million pounds of shares in the six months to March 29, said pre-tax profits dropped to 31 million pounds. David Thomson, Marston's chairman, said: "We do not plan currently to change the existing structure of the group as we do not believe that the potential benefits outweigh the implementation costs or increased risk, but we will continue to keep the situation under review."

MOSS BROS FAMILY SELLS MORE STAKE

The founding family behind the Moss Bros chain has sold more of its stake in the menswear retailer, despite recently dismissing a possible bid from Baugur as significantly undervaluing the company. Baugur made a 42 pence-a-share indicative approach for Moss Bros in February, but family members said that the offer undervalued the chain. However, because members of the family have been selling shares at 45 pence, 46 pence and 50 pence over the past few weeks, Baugur's offer price looks to be close to an acceptable level.

TALK OF PREDATORY LLOYDS TSB BOOSTS BANKS

Speculation has been mounting whether Lloyds TSB<LLOY.L> could launch a bid for Alliance & Leicester<ALLL.L> or Bradford & Bingley<BB.L>. The rumours were fuelled by Exane BNP Paribas, which lifted its rating on the high street bank to neutral from underperform. Analyst Ian Gordon mused: "It seems reasonable to contemplate the possible attractions to Lloyds of a bid for Alliance & Leicester or Bradford & Bingley." He also pointed out that B&B is trading at a large discount to book value, while "funding and capital synergies now appear increasingly relevant."

The Independent

CAA CALLS FOR BREAK-UP OF BAA'S LONDON MONOPOLY

The Civil Aviation Authority has added its name to the growing list of regulators calling for the break-up of BAA's monopoly over London's airports. On Friday, the regulator claimed BAA's ownership of Gatwick, Heathrow and Stansted prevented competition in the region, which was damaging to customers. Last month, the Competition Commission accused BAA of "a lack of responsiveness to the differing needs of its airline customers, and hence passengers," signalling too that it would recommend the break-up of its London assets.

BATTLE FOR EXPRO ERUPTS WITH BIDS FROM HALLIBURTON AND CANDOVER

A bidding battle over British oil services company Expro International<EXR.L> has erupted after Halliburton tabled a 15.25 pound per share takeover proposal which was trumped within hours by Umbrellastream, which placed a 15.50 pound cash bid. Halliburton has been poring over Expro's figures since shortly after Umbrellastream, a Candover<CDI.L> led private equity consortium, first made an agreed bid at 14.35 pounds a share in April.

SUEZ DROPS OUT OF BRITISH ENERGY BIDDING

Suez<LYOE.PA> has withdrawn from its attempt to take over Britain's ageing fleet of nuclear power stations. On Friday, the French utility company said that the possible bid had become a casualty of its protracted attempt to close a planned merger with Gaz de France<GAZ.PA>, the French state-owned gas supplier. The utility had been one of up to ten possible bidders hounding British energy<BGY.L>, and said: "The completion of the merger with Gaz de France remains Suez's key priority. Accordingly, Suez confirms that in its development of the nuclear energy sector in the UK, those relating to a potential offer for British Energy have now ceased."

The Guardian

ANGER AS CROZIER GETS TWO MILLION POUND REWARD.

Adam Crozier, Royal Mail's chief executive, will receive an almost two million pound payout this summer under the company's long term incentive plan. The general secretary of the Communication Workers Union, Billy Hayes, said: "Royal Mail has just claimed that it is financial crisis, that employees are overpaid and is trying to reduce the pension benefits of its staff. At the same time as this, executive pay is completely out of control."

L&G JOINS ROCK SHAREHOLDERS IN LEGAL FIGHT FOR COMPENSATION

Legal & General<LGEN.L> is joining legal proceedings brought by angry Northern Rock<NRK.L> shareholders who are seeking compensation for the bank becoming nationalised. The insurer has decided against launching its own legal action after indicating in March it was considering its own proceedings. It will instead throw its weight behind the Shareholders Action Group and hedge funds SRM and RAB capital. The Government has yet to appoint an accountant to establish whether to compensate Northern Rock's shareholders, even though the bank was taken into state ownership in February.

WOOLWORTHS CONSIDERS SALE OF DVD STAKE

Woolworths has revealed it is considering selling its stake in 2entertain, the DVD distribution business, following months of speculation. The high street retailer said in a statement: "The company can confirm that it is considering its options with regard to this stake which may or may not lead to a transaction." It is understood it will work with UBS<UBSN.VX> to weight up whether a sale of the growing business makes sense.

Prepared for Reuters by Durrants

US STOCKS-Record oil fuels worst week in 3 months

Reuters: [2008-05-23 22:11:00]

(Updates to 4 p.m.)

NEW YORK, May 23 (Reuters) - U.S. stocks fell on Friday to round out the worst week in three months as worries about high oil prices hammered energy-sensitive sectors and left investors on edge about inflation at the onset of a holiday weekend.

The Dow Jones industrial average <.DJI> ended down 145.99 points, or 1.16 percent, at 12,479.63. The Standard & Poor's 500 Index <.SPX> was down 18.42 points, or 1.32 percent, at 1,375.93. The Nasdaq Composite Index <.IXIC> was down 19.91 points, or 0.81 percent, at 2,444.67.

For the week, the Dow fell 3.9 percent, the S&P dropped 3.5 percent and Nasdaq was down 3.3 percent. ((chris.sanders@thomsonreuters.com; +1-646-223-6343; Reuters Messaging: rm://chris.sanders.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com

* BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) Keywords: MARKETS STOCKS

 
============================================================== 
 To access running updates on what's moving U.S. stocks double 
click on [STXNEWS/US] 
============================================================== 
 For other U.S. market data and news, click on codes in 
brackets: 
 U.S. Equities speed guide........................<US/EQUITY> 
 S&P 500 index ........................................<.SPX> 
 Dow Jones industrial average..........................<.DJI> 
 Nasdaq Composite index...............................<.IXIC> 
 Nasdaq 100............................................<.NDX> 
 Russell 2000 small cap................................<.RUT> 
 S&P major sectors..............................<0#.GSPMAJOR> 
 NYSE most active.....................................<.AV.N> 
 Nasdaq most active...................................<.AV.O> 
 Top NYSE pct gainers.................................<.PG.N> 
 Top NYSE pct losers..................................<.PL.N> 
 Top Nasdaq pct gainers...............................<.PG.O> 
 Top Nasdaq pct losers................................<.PL.O> 
 52 week highs: 
    NYSE...............<t.YH.N>  Nasdaq..............<t.YH.O> 
 52 week lows: 
    NYSE...............<t.YL.N>  Nasdaq..............<t.YL.O> 
 
    Main global stock indexes and market reports: 
 FTSE Eurotop 300 .....<.FTEU3>  European report .......[.EU] 
 Nikkei 225.............<.N225>  Tokyo report............[.T] 
 FTSE 100...............<.FTSE>  London report...........[.L] 
 Xetra DAX.............<.GDAXI>  Frankfurt market stories[.F] 
 CAC-40.................<.FCHI>  Paris market stories...[.PA] 
 World Indices.....................................<0#.INDEX> 
 Reuters survey of world bourse outlook.........<EQUITYPOLL1> 
 U.S. IPO diary........................................[IPO/] 
 U.S. Asset Allocation Table.......................[US/ASSET] 
 
 More Reuters News on equities at a glance: 
 Equities ............[E]   US company news.........[TOP/EQU] 
 
    Key non-equities market reports: 
 Foreign exchange......................................[FRX/] 
 Oil....................................................[O/R] 
 US Treasuries.........................................[US/N] 
 International bonds...................................[EUB/] 
 Gold.......................................[GOL/X] or [GOL/] 
 CRB index of commodity futures........................[CRB/] 

Baker Hughes-US rig use up 27, Canada up 20

Reuters: [2008-05-23 20:58:00]

Please be advised that Reuters will discontinue coverage of the 
weekly North American rig count from Baker Hughes in June. 
Clients can find the information on the Baker Hughes website: 
http://www.bakerhughes.com/investor/rig/rig_na.htm 
Please contact Richard Valdmanis, RAM Energy Editor, at 
646-223-6056 or via email at 
richard.valdmanis@thomsonreuters.com with any questions or 
comments. 
    
    NEW YORK, May 23 (Reuters) - Drilling rig use rose in North 
America by 47 units last week, oil services firm Baker Hughes 
<BHI.N> said. 
    The following table summarizes the Baker Hughes report and 
details the change on the previous week and year ago: 
    
                    Total May 23       Pvs. Week     Year Ago 
------------------------------------------------------------- 
North America           2,041             +47         +167 
Canada                    152             +20          +38 
United States           1,889             +27         +129 
-------------------------------------------------------------- 
Oil                       386              +5          +99 
Gas                     1,493             +22          +22 
Miscellaneous              10            UNCH           +2 
Vertical                  960              +2          -41 
Horizontal                544             +16         +167 
Directional               385              +9           +3 
-------------------------------------------------------------- 
Gulf of Mexico             64              -2          -15 
-------------------------------------------------------------- 
For the complete report, double click on the following link: 
http://www.bakerhughes.com/investor/rig/rig_na.htm 
    ((New York Energy Desk, 646-223-6050)) 
    
Keywords: ENERGY RIGS/BAKERHUGHES 
    

US STOCKS-Wall Street drops as oil worries nag

Reuters: [2008-05-23 20:38:00]

(Updates to early afternoon, changes byline)

* Oil price weighs on consumer outlook

* Airlines, restaurants among sectors hit hardest

* Housing data shows mixed picture

By Kristina Cooke

NEW YORK, May 23 (Reuters) - U.S. stocks fell on Friday, as worries about high oil prices hammered energy-sensitive sectors and left investors on edge about inflation at the onset of a long holiday weekend.

Economic bellwethers United Tech <UTX.N> and Caterpillar <CAT.N> were among the top drags on the Dow.

General Motors' <GM.N> shares fell to a 26-year low after the company said the just-ended strike at supplier American Axle & Manufacturing Holdings Inc <AXL.N> and separate strikes by the United Auto Workers at its own plants had reduced its earnings by a total of $2.8 billion.

Worries about the impact of high oil prices pushed the American Stock Exchange index of airline stocks <.XAL> down 4 percent. Shares of restaurant chains, also seen vulnerable, were lower.

U.S. crude <CLc1> futures rose to $131.92. They pulled back on Thursday but only after climbing to an intra-day record $135.09 per barrel.

"Oil prices are what's driving us down again. As they just continue to go higher and higher, that's putting pressure on the economy, and as people think the economy is not going to do so well, that's hurting stocks," said Giri Cherukuri, head trader at OakBrook Investments LLC in Lisle, Illinois.

Since the start of the year oil prices have climbed by more than 30 percent.

The Dow Jones industrial average <.DJI> fell 150.95 points, or 1.20 percent, to 12,474.67. The Standard & Poor's 500 Index <.SPX> was down 18.56 points, or 1.33 percent, at 1,375.79, while the Nasdaq Composite Index <.IXIC> was down 24.07 points, or 0.98 percent, at 2,440.51.

Data from a realtors group showed a decline in U.S. existing home sales that was less than expected. But the report gave a mixed picture, with inventories of unsold homes rising 10.5 percent last month.

Shares of American International Group Inc <AIG.N>, the world's largest insurer, fell 2.5 percent to $36.87. Moody's Investors Service cut the company's credit rating, citing losses from its exposure to the U.S. mortgage market and credit derivatives.

GM shares were down 5 percent at $17.50, while United Technologies' shares fell 2.6 percent to $69.98 and Caterpillar shares slid 1.5 percent to $81.02.

Restaurant Cheesecake Factory <CAKE.O> fell 5.8 percent to $19.66 and Darden Restaurants <DRI.N>, the operator of the Red Lobster chain, fell 3.7 percent to $31.99.

Takeover developments were a bright spot, as the Dow and the Nasdaq were on track for their worst week in three months.

Belgian brewer InBev <INTB.BR> is working on a bid for U.S. rival Anheuser-Busch Companies Inc <BUD.N>, according to a source familiar with the situation. Shares of the brewer of Budweiser beer were 7.3 percent higher at $56.39.

Trading volume was light. The bond market closed early at 2 p.m. (1800 GMT) before the Memorial Day holiday weekend. (Editing by Kenneth Barry)

((kristina.cooke@thomsonreuters.com; +1 646 223 6154; Reuters Messaging:rm://kristina.cooke.reuters.com@reuters.net))

((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) Keywords: MARKETS STOCKS

US STOCKS-Wall Street drops as oil worries persist

Reuters: [2008-05-23 18:19:00]

(Updates to midday, changes byline)

* Oil price weighs on consumer outlook

* Airlines, restaurants among sectors hit worst

* Housing data shows mixed picture

By Cal Mankowski

NEW YORK, May 23 (Reuters) - U.S. stocks fell on Friday, as worries about high oil prices left investors on edge about inflation at the onset of a long holiday weekend and hurt energy-sensitive sectors.

Data from a realtors group showed a decline in U.S. existing home sales that was less than expected. But the report gave a mixed picture, with inventories of unsold homes rising 10.5 percent last month.

U.S. crude <CLc1> futures approached $134 per barrel before dipping below $131. The oil price hit a record $135.09 per barrel on Thursday.

American International Group Inc <AIG.N>, the world's largest insurer, was a top drag on the Dow and S&P 500 after Moody's Investors Service cut the company's debt rating, citing losses from its exposure to the U.S. mortgage market and credit derivatives. For details see [ID:nHKG168559].

AIG shares fell 2.5 percent to $36.87 on the NYSE.

"The market is now starting to think with the continued high oil prices that there could be potential for some kind of sustained inflationary period coupled with the slowdown in the economy," said Brandon Thomas, chief investment officer with Portfolio Management Consultants, a unit of Envestnet Asset Management, in Chicago.

Thomas said the rise in housing inventories suggested that problems in the sector will persist. "I think people have been hoping that with the price declines some of that existing inventory out there would have been cleared," he said.

The Dow Jones industrial average <.DJI> fell 106.01 points, or 0.84 percent, to 12,519.61. The Standard & Poor's 500 Index <.SPX> tumbled 15.50 points, or 1.11 percent, to 1,378.85. The Nasdaq Composite Index <.IXIC> declined 25.00 points, or 1.01 percent, to 2,439.58.

Worries about the impact of high oil prices pushed the American Stock Exchange index of airline stocks <.XAL> down 2.6 percent.

Shares of restaurant chains, also seen vulnerable, were lower. Cheesecake Factory <CAKE.O> fell 5.8 percent to $19.66 and Darden Restaurants <DRI.N>, the operator of the Red Lobster chain, fell 3.7 percent to $31.99.

Kimberly-Clark <KMB.N>, the maker of Kleenex tissues and Huggies diapers, said on Friday it would lift prices by 6 percent to 8 percent to offset higher raw material and energy costs. Shares fell 1 percent to $63.06.

Takeover developments also stirred the market, as the Dow and the Nasdaq were on track for their worst week in three months.

Halliburton <HAL.N>, the world's second-biggest oil services company, has bid $3.4 billion for British company Expro International <EXR.L>, Expro said. Halliburton shares fell 1.7 percent to $47.45.

A report that Belgian brewer InBev <INTB.BR> is working on a bid for U.S. rival Anheuser-Busch Companies Inc <BUD.N> helped lift shares of the brewer of Budweiser beer 7.3 percent higher to $56.39. The report appeared on the Financial Times website in its Alphaville blog.

Trading volume may taper off in the afternoon because the bond market was scheduled to close early at 2 p.m. (1800 GMT) before the Memorial Day holiday weekend. (Editing by James Dalgleish) ((cal.mankowski@thomsonreuters.com; +1 646 223 6132; Reuters Messaging: cal.mankowski.reuters.com@reuters.net))

((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com))

Keywords: MARKETS STOCKS

 
============================================================== 
 To access running updates on what's moving U.S. stocks double 
click on [STXNEWS/US] 
============================================================== 
 For other U.S. market data and news, click on codes in 
brackets: 
 U.S. Equities speed guide........................<US/EQUITY> 
 S&P 500 index ........................................<.SPX> 
 Dow Jones industrial average..........................<.DJI> 
 Nasdaq Composite index...............................<.IXIC> 
 Nasdaq 100............................................<.NDX> 
 Russell 2000 small cap................................<.RUT> 
 S&P major sectors..............................<0#.GSPMAJOR> 
 NYSE most active.....................................<.AV.N> 
 Nasdaq most active...................................<.AV.O> 
 Top NYSE pct gainers.................................<.PG.N> 
 Top NYSE pct losers..................................<.PL.N> 
 Top Nasdaq pct gainers...............................<.PG.O> 
 Top Nasdaq pct losers................................<.PL.O> 
 52 week highs: 
    NYSE...............<t.YH.N>  Nasdaq..............<t.YH.O> 
 52 week lows: 
    NYSE...............<t.YL.N>  Nasdaq..............<t.YL.O> 
 
    Main global stock indexes and market reports: 
 FTSE Eurotop 300 .....<.FTEU3>  European report .......[.EU] 
 Nikkei 225.............<.N225>  Tokyo report............[.T] 
 FTSE 100...............<.FTSE>  London report...........[.L] 
 Xetra DAX.............<.GDAXI>  Frankfurt market stories[.F] 
 CAC-40.................<.FCHI>  Paris market stories...[.PA] 
 World Indices.....................................<0#.INDEX> 
 Reuters survey of world bourse outlook.........<EQUITYPOLL1> 
 U.S. IPO diary........................................[IPO/] 
 U.S. Asset Allocation Table.......................[US/ASSET] 
 
 More Reuters News on equities at a glance: 
 Equities ............[E]   US company news.........[TOP/EQU] 
 
    Key non-equities market reports: 
 Foreign exchange......................................[FRX/] 
 Oil....................................................[O/R] 
 US Treasuries.........................................[US/N] 
 International bonds...................................[EUB/] 
 Gold.......................................[GOL/X] or [GOL/] 
 CRB index of commodity futures........................[CRB/]