WHAT THE OTHER PAPERS SAY THIS MORNING
FINANCIAL TIMES
M&B SEEKS TO FEND OFF INVESTOR REBELLION
Mitchells & Butlers is prepared to head off a potential rebellion by offering its two largest shareholders board representation. Drummond Hall, M&B chairman, is understood to be in talks with Joe Lewis, the Bahamas-based billionaire, and Elpida, the investment vehicle for Irish horseracing tycoons JP McManus and John Magnier, over the appointment of a representative from each camp as non-executive director.
EXELON SETS OUT ‘FINAL BID’ FOR NRG
Exelon yesterday increased its hostile bid for NRG Energy by 12 per cent to about $7.5bn and called the move its “best and final offer’’. The US electricity producer, which has been trying to acquire its rival since October said it had raised its offer after identifying another $1.5bn in cost savings.
SHIP SEIZURES EXPECTED TO RISE
Financially troubled shipowners could be facing a wave of ship seizures after two high-profile foreclosures suggested financiers’ and creditors’ patience was wearing thin. Seizures are expected to increase over the year as shipowners struggle to pay shipbuilders’ instalments due on new vessels. However, the extent of seizures might depend on whether a recovery in the rates earned by dry bulk ships, one of the most troubled sectors, is sustained.
FORMER IKB CHIEF FACES CHARGES
Germany could soon be witnessing its first trial related to the financial crisis, after prosecutors charged Stefan Ortseifen, the former chief executive of stricken lender IKB. Prosecutors in the city of Düsseldorf said in a statement that they had charged Mr Ortseifen – who led the mid-sized corporate lender until 2007 – with manipulating the share price and breach of trust.
THE TIMES
AS VIRGIN SHEDS JOBS, CHIEFS ENJOY 40 PER CENT PAY RISES
Virgin Atlantic, which has said it could cut up to 1,200 jobs because of the recession, awarded its senior managers a 40 per cent pay increase last year. Staff have accused Steve Ridgway, the chief executive, of a lack of moral leadership after his salary rose from £500,000 to £700,000.
WALKER TO SEEK BOOST FOR BANK RISK MONITORS
Sir David Walker’s review of banks’ corporate governance is likely to call for a dramatic increase in the power of risk committees. Sir David is set to publish on July 16 his initial views about how banks’ managements should be shaken up in an attempt to avoid a repeat of the financial crisis and may call for banks to have board-level risk committees, made up of non-executive directors.
The Daily Telegraph
GENERAL MOTORS TO SELL OFF GOLF COURSE AND CAR PARK
As part of the embattled car manufacturer’s Chapter 11 bankruptcy process, GM is selling assets it no longer needs, including a litany of odd assets it accrued over its 101-year history. Top of the list is the golf course at Hyatt Hills in Clark, New Jersey, which was built on a former factory.
SWEDEN CUTS RATES TO RECORD LOW AS EUROPEAN CRUNCH DEEPENS
Sweden’s Riksbank has cut interest rates a quarter point to 0.25pc and signalled emergency stimulus until late-2010, fearing that the downturn will prove deeper than previously expected. The move caught the markets by surprise and suggests that global investors may have jumped the gun by forecasting a speedy return to inflation.
WALL STREET JOURNAL
BOEING’S DELIVERIES REMAIN STEADY
Boeing said it delivered 125 commercial aircraft during the second quarter, four more than it delivered in the first period and one fewer than in the year-earlier quarter. The company also said it booked nine new orders over the past week, though more cancellations – including 15 for the delay-plagued 787 — left it with a net gain of just one aircraft in the first half of 2009.
JUSTICE PROBES GOOGLE DEAL
The US Justice Department said it is investigating a settlement between Google and authors and publishers, saying that antitrust issues raised by the deal warrant scrutiny. Deputy assistant attorney General William Cavanaugh disclosed the investigation in a letter to US district court Judge Denny Chin.