ECS gains support for Vodafone plans
A key US lobby group has lent its support to the “value-creating” plans of the rebel shareholder stalking Vodafone. Glass, Lewis & Co has recommended that investors back plans by Efficient Capital Structures (ECS) to force Vodafone to spin off its holding in Verizon Wireless. The group also backs ECS’s demand for Vodafone to borrow more money. The support of such an influential US group marks a blow to Vodafone before its annual meeting on July 24. In a detailed response to investors, it dismissed the proposals from ECS, which says it could release up to £38 billion from Vodafone. (Elizabeth Judge)
Airlines must apply local laws in France
Ryanair and easyJet must apply French employment laws to staff operating from the country after a court threw out an attempt by the airlines to bypass local rules. The two budget airlines were appealing against legislation introduced last year compelling foreign airlines to apply French employment laws for crews based at the country’s airports. Ryanair, which is based in Ireland, argued that the rule breached European laws on the free movement of workers. But France’s Conseil d’Etat disagreed and ordered both airlines to pay €2,500 (£1,700) legal costs, the court said in a statement today. (Michael Herman)
Carter & Carter warns
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Carter & Carter Group, the support services firm, again warned on profits after failing to win tenders for a government contract and said that trading was lower than expected. Carter & Carter said adjusted pretax profits for the year to July 31 would be £10.5 million, down £4.7 million from the year before. Shares in Carter & Carter slid 58.4 per cent to 111½p, valuing it at about £46 million. (Reuters)
Backing for Horlick
Vincent Tchenguiz, the property tycoon, has emerged as the largest shareholder in Nicola Horlick’s alternative investment fund that made its stock market debut this week. Mr Tchenguiz’s £40 million purchase of the 29.9 per cent stake in Bramdean Alternatives is seen as part of a bigger strategic move by his Consenus Business Group to venture into carbon trading. (James Rossiter, Miles Costello)
Purchase by aAIM
A celebrities’ property fund backed by Sir Alex Ferguson, the Manchester United manager, and Simon Cowell, the pop impresario, has bought three European shopping centres for €490 million (£332 million). The acquisitions mark the first foray on to the Continent for aAIM Europe, a fund set up by Robert Whitton and Mark Tagliaferri in joint venture with Bank of Scotland. (James Rossiter)
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B&Q sues supplier
B&Q is suing a Chinese company for defamation over allegations that the DIY retailer has been illegally squeezing local suppliers. B&Q, part of the Kingfisher group, said that it filed the suit against Yadier Decoration & Garment Company after the kitchen cupboard maker said B&Q illegally held back payments from suppliers. At least four other Chinese suppliers have joined in criticism of B&Q. (Reuters)
Deadline extended
Terra Firma has given EMI shareholders an extra week to accept its £2.4 billion offer for the troubled music label after receiving support from less than 4 per cent of investors. Shareholders in EMI now have until July 19 to back the takeover bid after the private equity group extended the deadline. Terra Firma also said it had received clearance from the European Commission for the deal. (PA)
‘Markets should rule on exchange rates’
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Financial markets should decide the exchange rates of currencies, European Economic and Monetary Affairs Commissioner Joaquin Almunia said yesterday amid record euro strength against the dollar and the yen. The strength of the euro has been criticised by France, whose president would like eurozone finance ministers to become more active on exchange rate policy, arguing the strong euro was hurting exports and growth. “Markets should decide exchange rates – regarding the euro, regarding the yen, regarding the dollar, regarding all the currencies,” Mr Almunia said. (Reuters)
Peeking at the books
A consortium led by TPG and British Airways will respond to Iberia’s request for a formal bid after examining the limited book access granted by the Spanish airline, a source said. After a first look at the books, the consortium will inform the carrier on how it plans to proceed with its indicative €3.60-a-share approach. This could mean a formal bid or a withdrawal. (Thomson Financial)
DoCoMo tests speed
NTT DoCoMo, the largest Japanese mobile phone operator, said that it had begun tests on an advanced network that transmits information about 100 times faster than the 3G format. The company said that its testing would also examine the functionality of applications for voice, image transmissions and games. These are all key features of the advanced network business. (Thomson Financial)
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Google fights back
Eric Schmidt, the Google chief executive, declared that he would mount a vigorous defence against a $1 billion (£490 million) lawsuit filed by Viacom, the media giant, saying that his company has been obeying the law with its YouTube video-sharing service. Viacom contends that YouTube is a massive copyright infringer because it allows users to upload video clips from Viacom properties. (AP)
Iran rejects the dollar
Iran has asked Japanese buyers of its crude oil to switch to the yen from dollars as it faces growing pressure from the West over its nuclear programme, a customer said. Tehran has been limiting dollar-denominated trade as the US leads efforts to isolate the Islamic nation over its atomic programme. By May, Iran had raised the amount of its oil earnings in currencies other than dollars to 70 per cent. (Reuters)
Intel backs cheap PC
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Intel said it will support a project to put computers in the hands of poor children around the world, reversing its long-standing opposition to the proposal. The world’s biggest chipmaker will join the board of the One Laptop Per Child Foundation, which has developed the XO laptop to retail at $176 (£86) and plans to put it into production in September. (Reuters)