WHAT THE OTHER PAPERS SAY THIS MORNING
FINANCIAL TIMES
CCB SHARE DEAL VOLUME SURGES AFTER BANK OF AMERICA SELL-DOWN
The volume of share dealing in China Construction Bank soared yesterday, fuelling speculation that some buyers of Bank of America’s $7.3bn (£4.8bn) sell down had flipped their holdings to pocket huge gains. The troubled US bank on Tuesday sold 13.5bn shares in the mainland lender to a group of mostly mainland investors.
GROUP KNOCKED OUT OF GATWICK BID
The consortium led by Citi Infrastructure Investors was ejected from the final stages of the contest to take over London Gatwick, the UK’s second largest airport because its bid was two low. Lysander Gatwick investment bid about £1.18bn, according to sources close to the group.
theguardian
STOCKMARKET DECLINE DRIVES DOWN VALUE OF LABOUR’S CHILD TRUST FUNDS
The stockmarket slump has dealt a heavy blow to the government’s child trust fund scheme, with new figures showing that many children’s investments are now worth less than the amount paid into them. Parents who invested £250 in their child’s share-based accounts are now finding it is worth about £232.
KBC SHARES SUSPENDED IN BELGIUM, AIB BOSS PELTED IN DUBLIN
The Belgian authorities are expected to announce a third balout for hte banking and insurance group KBC today amid speculation that it has lost up to £3.6bn. And Chairman of Allied Irish Banks, Dermost Gleeson was pelted with eggs at a shareholder meeting called to accept a cash call.
THE TIMES
PASSENGER FOCUS WATCHDOG WILL REPLACE AIR TRANSPORT USERS COUNCIL
The airline passenger watchdog, a long-standing critic of government policy on aviation, is to be abolished. The government plans to replace the Air Transport Users Council with a body appointed directly by the Transport Secretary, called Passenger Focus.
TREASURY SECRETARY SAYS US BANKS ARE ‘HEALING’
Timothy Geithner, the US Treasury Secretary, identified signs of “healing” in the American banking system following the Government $700bn bailout and controversial stress testing programme. Geithner said that lending conditions were improving for corporates and consumers and concern about systemic risk was diminishing.
The Daily Telegraph
MORE SIG JOBS GO AS MARKET WORSENS
Sheffield-based building products group SIG will cut a further 170 jobs after suffering a sharp drop in sales over the year so far. SIG, Europe’s largest supplier of roofing and insulation materials, said like-for-like sales fell 21.9 per cent and 41.6 per cent in the UK and Ireland respectively over the year to 12 May.
AMEC ON THE LOOKOUT FOR ACQUISITIONS
AMEC, the blue-chip engineering and oil services group, expects to make “selective acquisitions” after trading in line with expectations so far in 2009, management says. Chief executive Samir Brikho said Amec had made “a good start to the year and remains on track to deliver another year of improved performance” and the its order book continues to grow.
WALL STREET JOURNAL
COURT FAVORS EBAY IN L’ORÉAL SUIT
A French court ruled that eBay can’t be held legally accountable for the sale of counterfeit L’Oréal perfumes and face creams on its auction web site in France. The ruling, which comes two years after the French cosmetics giant filed a lawsuit against eBay, encompasses all brands for which L’Oréal makes beauty products.
LVMH TO ACQUIRE A STAKE IN BONO’S EDUN
LVMH Moet Hennessy Louis Vuitton is close to a deal to take a major stake in Edun, the ecologically and socially-conscious fashion line backed by singer Bono and his wife Ali Hewson, according to a person familiar with the matter. The deal, under which LVMH could take close to a 50 per cent stake in Edun, could be announced as early as Thursday.