Editor: John Arnold. E-mail jarnold@creditman.co.uk
Pat Williams. E-mail pwilliams@creditman.co.uk
Site: Business Credit Management UK
URL: http://www.creditman.co.uk
Issue: Vol 5 Issue 26
Dated: 1 July 2001
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKINTERNATIONAL SHOCKS AND FOOT-AND-MOUTH OUTBREAK LEAD TO SIGNIFICANT SLOWDOWN IN UK ECONOMY
UK economic growth could slow from 3% in 2000 to only around 2% in 2001 due to the combined effects of international shocks to world trade, share prices and the technology sector, and the impact of the foot-and-mouth crisis, according to new analysis by economists at PricewaterhouseCoopers.
The analysis is contained in the latest issue of PricewaterhouseCoopers regular UK Economic Outlook report, which was published. The estimates allow for the offsetting impact of lower interest rates, planned public spending increases and tax cuts in the Budget.
The most important negative shock is that world trade growth is projected approximately to halve in 2001 due to the slowdowns in the US, Asia and Euroland. Taking into account the geographical profile of UK trade, PricewaterhouseCoopers estimates that this could lead to a reduction in UK export volume growth from 8.4% in 2000 to around 5% in 2001. Allowing for some offset from reduced import growth, this effect would be equivalent to around 0.7% of GDP in 2001.
The second key negative factor is the fall in global equity prices, which can be expected to have negative wealth effects on consumer spending and to reduce business investment by increasing the cost of equity capital.
PricewaterhouseCoopers estimates that there could be a fall in average UK equity prices of around 5% between 2000 and 2001 that would translate into a fall in GDP of around 0.4% in 2001. There could also be additional impacts on the UK financial services sector that lift PricewaterhouseCoopers' central estimate of the impact of global equity prices on UK GDP growth in 2001 to around 0.5%.
The third negative shock is the impact of the global technology industry slump. As a result of this, PricewaterhouseCoopers expects growth in the UK information and communications technology (ICT) sector to slow from around 13% in 2000 to only around 6% in 2001, with a consequent reduction of around 0.2% in overall UK GDP growth in 2001 relative to 2000.
The fourth negative factor is the foot-and-mouth crisis. Assuming no major new flare-ups of the disease, the latest estimate from PricewaterhouseCoopers is that the level of GDP might be around 0.3% lower on average in 2001 than otherwise. This effect should be largely, but perhaps not completely, reversed in 2002.
In total, PricewaterhouseCoopers best estimate is that the combined negative impact of these shocks at around 1.7% of GDP in 2000, relative to a continuation of 2001 growth trends. International shocks are almost five times as significant as the impact of the foot-and-mouth crisis. Offsetting these negative shocks, however, lower interest rates and a more relaxed fiscal policy stance are assumed to boost GDP by around 0.7% this year, so that the net decline in GDP growth is estimated at around 1%, from 3% in 2000 to around 2% in 2001.
PricewaterhouseCoopers emphasises that all these estimates are subject to significant margins of error, with a plausible range for GDP growth in 2001 from around 2.6% in an optimistic scenario to only around 1.4% in a pessimistic scenario (see table below for details of these calculations).
Using this analysis, PricewaterhouseCoopers main scenario for overall GDP growth is 2%, but manufacturing output growth is projected to remain much lower at only around 0.5% in 2001. Moreover, the risks for the manufacturing sector are more clearly weighted to the downside than for the economy as a whole, particularly in the light of the recent slowdown in the UK's major export markets in Euroland.
Rosemary Radcliffe, Chief Economist at PricewaterhouseCoopers, said:
"Inevitably, the UK as a reasonably open economy is feeling the effect of the international slowdown. The risk of this slowdown turning into an outright recession seems small, however, not least because of the prompt action by the MPC in cutting interest rates earlier this year and also the planned surge in public spending, which should give a boost to the economy.
"I do not expect any change in interest rates at the next MPC meeting on 4-5 July, but a further rate cut could still be needed later this year if there is any further deterioration in the international economic environment."
INTEREST RATES: NO LIKELY CHANGE AT NEXT MPC MEETING, SAYS KPMG
Interest rates look set to remain on hold at next week's Monetary Policy Committee meeting amid signs of continuing buoyancy of consumer spending, a surprise jump in inflation and official warnings about the unsustainability of the two-speed economy. However, the market's knee-jerk reaction to the recent data - to assume that interest rates will be rising by the turn of the year - is jumping the gun.
Summer pause to continue…
Evidence since the June MPC meeting weighs heavily against a resumption of the downtrend in interest rates in July. The surprise jump in inflation in May - the RPIX measure rose from 2% to 2.4%, within a hairsbreadth of target - came as sharp rises in food prices and motoring costs (principally fuel) more than offset the impact of mortgage rate cuts and the dampening effect of Budget measures on alcoholic drinks prices. Although there is a good chance that the rise will prove short-lived - the upward pressures on seasonal food prices may soon reverse, crude oil prices seem to be stabilising and core producer price measures remain subdued - at the least the Committee will wish to see another month's data to more fully assess the situation.
The two-speed economy poses a longer term and (probably) more difficult problem for the Committee. On the one hand manufacturing industry is suffering from the strength of sterling and the global slowdown and is effectively in recession; on the other hand, judging by surging retail sales and a renewed upturn in house price inflation, the consumer is taking full advantage of lower interest rates and felt confident enough to cut savings in the first quarter. It is still not clear to what extent high street buoyancy may reflect distortions in spending patterns resulting from the foot and mouth epidemic but, against a background of still falling unemployment, sentiment remains positive and the slowdown in consumption expected this year still looks some way off.
Ironically, last month's pick-up in inflation helps to alleviate, at least temporarily, the bank's key policy dilemma - that subdued inflation may require easier monetary policy if the inflation target is to be met, but that this would risk further fueling consumer spending and reinforcing economic imbalances in the medium-term. It is fairly clear that many members of the Committee would like to see a rebalancing of policy, with tighter monetary policy to restrain the consumer and lower sterling to alleviate pressure on the tradeables sector - but this is not in their power to deliver. As the Governor suggested, all they can do is pray for a stronger euro.
…but it's not all over yet
However, none of this necessarily means that we have reached the bottom of the interest rate cycle as there remain major uncertainties on both the domestic and international fronts. At home, while first quarter GDP growth was revised up from 0.4% to 0.5% thanks to stronger construction output, the revised data also revealed sharp falls in investment generally and, particularly worryingly, in business spending. Combined with what looks like an involuntary build up of stocks, we may be faced with a retrenching corporate sector and an inventory correction, with knock on effects on employment and, ultimately, consumer confidence and activity as well.
Internationally, the situation continues to get worse, with output plummeting in Japan and the slowdown in Europe spreading outward from Germany. In the US there are no signs that lower interest rates are yet turning the economy around, but still hopes that the savage inventory correction will soon play itself out and that output growth will resume. Equally, though, there is the ever present risk that consumer demand will flag before the corporate sector adjustment is complete, sparking a further business retrenchment and risking a self-reinforcing downward spiral.
The MPC's decision
Domestic considerations dictate against a July rate cut, even though the longer-term arguments of some committee members for a further stimulus if inflation is to reach target remain intact. Over the summer, the continuing downside risks to world growth will be the decisive factor: evidence that the US economy is embarking on a further downward leg would provide a strong case for easier policy here.
CHAMBERS REACT TO EUROPEAN COURT RULING ON PAID ANNUAL LEAVE
Reacting to last Tuesday's ruling by the European Court of Justice to force UK government to extend the right to paid annual leave to short-term contract workers, Ian Fletcher, Head of Policy at the British Chambers of Commerce said:
“The European Court ruling to force the UK government to change the working time laws to entitle all workers to paid annual leave from day one could cause difficulties for employers using short term contract workers. This is going to be a problem for every business that employs working parents.
“With four weeks parental leave, two weeks paid paternity leave and extended maternity leave for up to one year, in addition to four weeks paid annual leave, all employers in all sectors will increasingly need to employ workers to manage absences.
“They will now find themselves in the ridiculous situation of paying for a short term contract worker for one or two months to cover for a working parent and having to find temporary staff to cover the short term contract worker who could be due 1-3 days paid leave.
“The government has been trying to demonstrate to employers that it will help small firms to manage absences through advice and Employment Service support in accordance with proposals in the Work and Parents Green Paper. This ruling will only make managing absences even harder for small firms.”
More information on the ruling can be found at http://curia.eu.int/en/cp/aff/cp0121en.htm
CBI DISAPPOINTED AT EU RULING ON ANNUAL LEAVE
Reacting to the ruling by the European Court of Justice, Susan Anderson, CBI's Director of Human Resources Policy, said:
"The CBI is disappointed with the ruling - employers believe it is reasonable to have a qualification period before employees become entitled to holiday pay. This is a common practice in many EU states including, Germany, Belgium and Greece."
She said: "The ruling will be an inconvenience for employers and employees. Employers who employ people on short contracts of three or four weeks will want staff available to work the whole duration of the contract. Planning for holidays will cause disruption and inconvenience. Employers often pay a premium for this flexibility and many employees prefer having extra pay in lieu of holidays. Now they will not always have the option."
Businesses most likely to be affected will be those employing large numbers of seasonal workers, for example in agriculture, hotels, catering and tourism.
GRIFFITHS LAUNCHES 'BLIND DATE' FOR BUSINESS
£1.5 million boost to Corporate Venturing in the UK
Entrepreneurs and small companies with good ideas could soon be introduced to their perfect investor partner thanks to an initiative launched last week by Small Business Minister Nigel Griffiths.
Corporate venturing enables small companies to enter into a relationship with a larger investor that will bring finance, contacts and facilities whilst allowing them to retain their own identity.
Key research from the DTI, CBI and Natwest has revealed a major barrier preventing small businesses in the UK getting involved with corporate venturing is the lack of a matchmaker.
This initiative is one of a number of activities the Small Business Service (SBS) is taking forward, with external partners, aimed at stimulating awareness and understanding of corporate venturing and offering practical support to potential partners.
The SBS has found its perfect partner for this initiative in the form of the National Business Angels Network (NBAN) and the £1.5 million funding will be spent on building a new division which will exclusively work on methods enabling businesses to meet their perfect partner.
Mr Griffiths said:
"Businesses are like people, with the right partner they flourish. That is why I am launching a 'blind date' for business to introduce companies and investors who would not otherwise meet. For any relationship to be successful you must both know exactly what you want to get out of it and be prepared for every eventuality.
"We want to set down guidelines that will help both the investor and the invested make agreements which are in their interest. It will also help existing brokers by exposing them to small businesses looking for a partner.
"This Government wants to help entrepreneurs achieve their goals in the UK and what better way to do that but by enabling companies to help each other.
"No company has a monopoly on good technology or ideas. No company can develop everything in-house or find everything it wants on the market. Corporate venturing helps people keep a watching brief on new technology and maintain a competitive edge."
Two thirds of the US top 100 companies are thought to be either using or thinking of using corporate venturing as a means of finding new customers, new markets and new technologies, and yet the UK market remains relatively small.
David Irwin, Chief Executive of the Small Business Service, welcomed the project, saying:
"This is an exciting opportunity to make a real difference to the corporate venturing market in the UK. The SBS hopes that finding the right partner will enable more small firms to flourish and grow.
"We are also very pleased that this initiative is a result of further co-operation between ourselves and NBAN. We look forward to building on the productive relationships we already enjoy with NBAN."
Michael Snyder, Chairman of NBAN, believes initiatives like this are essential if we are to keep talent in the UK. Michael Snyder said:
"With this funding we aim to raise awareness of what corporate venturing is. Businesses need to be able to identify who their perfect partner is and they need a way of finding it each other, much like a dating agency.
"We aim to look into ways in which we can help and also work with existing brokers and provide guidelines and agreement to ensure small businesses don't get ripped off but also big business gets the company and agreement they were looking for.
Small business - Are you ready to tie the knot? Top 4 questions you must ask yourself before walking down the aisle:
NBAN is a clearinghouse for business angels and companies seeking investment funds. It provides a single point of entry through which all potential investors and companies can plug into the informal investment infrastructure throughout the country. It is supported by the DTI and sponsored by Barclays, HSBC, Lloyds TSB, NatWest, The Royal Bank of Scotland, chartered accountants Kingston Smith, solicitors Reynolds Porter Chamberlain and The Corporation of London together with London Stock Exchange.
Further information about making informal investment or seeking funds from a business angel can be obtained from: National Business Angels Network, 40-42 Cannon Street, London EC4N 6JJ, Hotline 020 7329 4141, http:/www.bestmatch.co.uk, e-mail: info@bestmatch.co.uk
Fear of bad debts and late payment preoccupy UK exporters, a comprehensive survey of 350 companies revealed on the 28 June.
Respondents ranged from one-man businesses to major multinationals.
International credit insurer NCM commissioned the survey on services exporters receive from banks, Government and credit insurers. It was carried out by the Credit Management Research Centre (CMRC) at Leeds University Business School. A similar survey was conducted in the Netherlands.
PAYMENT TRENDS
Cashflow remains an important issue for 95% of exporters, with 70% saying they spend too much time chasing late payment and 65% saying customers are taking longer to pay.
BANKS
Although support received on financing exports was reported as "excellent" or "good" by 28% of companies, 56% rated credit risk cover as "bad"or "poor". Country risk cover was also rated "bad" or "poor" by 51%.
GOVERNMENT
CREDIT INSURANCE
EURO
UK exporters are divided over the Euro
DUTCH EXPORT SURVEY
NCM in the Netherlands and FENEDEX (the Dutch Export Federation) jointly commissioned a survey of Dutch exporters this year. Results will be announced on 4 July.
NCM UK last year insured more than £20 billion of UK exports against the risk of non-payment. It is part of the Amsterdam-based NCM Group - one of the world's leading credit insurers, protecting companies whose buyers fail to pay.
CMRC is a world class research institute and was recently invited to join the Government's forum for late payment ,the Better Practice Group, as key adviser.
ICC ADDS OVER 20 MILLION IRISH AND EUROPEAN COMPANIES TO ITS ONLINE CREDIT INFORMATION SERVICE
ICC Information Ltd, the UK's leading credit information provider, last week announced its expansion into Europe with the launch of the Juniper Ireland and Juniper Europe services. ICC Information, renowned for providing more credit information on UK companies than any other business information supplier, has added 150,000 Northern and Southern Irish companies and over 20 million European companies to its current database of 6.5 million UK business.
The enhanced Juniper service now offers instantaneous online access to financial information on businesses in nine major European countries. This expansion provides credit managers with information on a huge marketplace that accounts for over £1.8 billion of UK foreign trade.
Commenting on the expansion, Adrian Howells, ICC's credit marketing director, stated that access to European data is becoming increasingly important.
"The growth of the pan-European marketplace and the adoption of the Euro has made access to reliable credit information about European companies an indispensable tool for UK credit managers. Through these two new services, access to vital credit information on European companies is available online, allowing decisions about European suppliers to be made in minutes, not hours."
Juniper Ireland and Juniper Europe add online financial and business data from the UK's top seven European import and export markets and over 50% of the UK's global foreign trade markets. The service includes Eire, Northern Ireland, France, Germany, Spain, Italy, Belgium, Austria, Denmark and the Netherlands.
The new services will specifically benefit credit professionals by providing data online from a single source, thus cutting the time and costs currently associated with pan-European research. Adrian Howells added that ICC is determined to ensure credit professionals can access all credit information from one trusted supplier.
"The launch of Juniper Ireland and Juniper Europe is a significant first step in our ongoing plan to provide the best possible company data from a single service. As we progress, we will continue to add content from sister companies both within the Bonnier Group, and from selected suppliers around the world."
The online European service is currently complemented by a comprehensive international offline service capable of emailing customers with detailed analysis of any company in the world.
HUMPTY DUMPTY BUSINESSES
The debate goes on!
I refer to recent discussions on this subject and, particularly, the refreshing views of Steve Doig in your issue of 24th June. I have been in UK credit insurance for 23 years, underwriting and broking and have seen countless examples such as that mentioned by Steve, involving a phoenix company continuing the trade of a defunct business.
Not infrequently, the owners and/or directors of the failed company have already set up the phoenix company before the announcement of the failure of the original business, notwithstanding the supposed protection afforded to creditors by the rules concerning trading whilst knowingly insolvent.
I find it extraordinary that the Government, whilst mouthing platitudes about "taking away the stigma of insolvency", is actually planning to increase the risk of insolvency of the innocent suppliers. You need only look across the Atlantic to see the dangers of such a change in "culture", as the powers that be would put it. A very high proportion of the US steel trade has sought protection from its creditors by way of filing for Chapter XI, often as a tactical, move, rather than one of pure survival. The immediate impact on the suppliers is the same....
A very large American company, US Gypsum, with subsidiaries in 74 countries and turning over more than $3billion, has just filed for Chapter XI, having decided this was the best way to deal with anticipated asbestos-related lawsuits; the poor old trade suppliers, even in completely unrelated businesses, will now have to share the pain.
Bad debts and slow payments are themselves some of the biggest threats to companies and some statistics claim that they represent the causal factor in as much as a third of British company failures. If "protection from creditors" becomes to effective, this proportion will only grow.
Julian Sankey E-mail JPSankey1@aol.com
Independent Trade Credit Associates Ltd
If you would like to have your say please email jarnold@creditman.co.uk and put 'Humpty Dumpty Businesses' in the subject line.
David Waterhouse of PricewaterhouseCoopers has been appointed liquidator of OnCue Telecommunications Limited.
OnCue Telecommunications was formed 18 months ago as one of the only start-up companies to take advantage of the unbundling of the local loop by BT. The company employed 130 employees based in offices in Manchester, Milton Keynes and London.
Hopes of bringing down the cost of high-speed internet access has suffered a severe setback with the liquidation.
David Waterhouse commented:
"We are reviewing the assets of the company and working with the directors and a retained team of approximately 30 employees to realise maximum value from those assets. Initial expressions of interest in the assets have already been received."
POTTER AND MOORE GROUP: IN ADMINISTRATIVE RECEIVERSHIP
Paul Jeffery and Myles Halley of KPMG Corporate Recovery were appointed administrative receivers on 26 June 2001 to Potter and Moore Group, the home toiletries and fragrance manufacturers based on an 11½ acre freehold site in Werrington near Peterborough.
The group's product range includes soap, shampoo, pot pourri, baby powder, scented candles and bath gels, which are designed and manufactured for major high street retailers. The group employed 220 staff at the date of the receivers' appointment and, whilst there have been some redundancies, most of the staff have been retained to meet ongoing customer orders.
Paul Jeffery, KPMG Corporate Recovery Partner, said:
"We are continuing to trade the business as normal, and wish to sell it as a going concern. Customers have indicated their support for the business and there is a strong order book, especially for Christmas. Any interested parties should contact us as soon as possible."
360NETWORKS (UK) LIMITED AND 360NETWORKS EUROPE LIMITED: IN ADMINISTRATION
Chris Laverty and Phil Wallace of KPMG Corporate Recovery have been appointed administrators to 360networks (UK) Limited and 360networks Europe Limited, the provider of fibre optics communications network products and services, today (29 June 2001).
360networks (UK) Limited is the UK operating company which is based in Maidenhead. It employed until recently 130 staff. 360networks Europe Limited is the holding company for the twelve European subsidiary companies of which 360networks (UK) Limited is one.
360networks (UK) Limited forms part of the parent company - 360networks Inc. - which has entities in North America, the Americas, mainland Europe, Bermuda, Barbados and Eire, and the Far East. Global revenue to 31 December 2000 was $511 million, and from inception, $3.7 billion has been spent on developing the network.
Chris Laverty, KPMG Corporate Recovery, commented:
"The administrators will seek to preserve the value of the UK network by continuing to trade the business, while exploring a sale of this network - either as part of a Group wide transaction involving the Group's North American network and transatlantic cables - or, on a standalone basis. We will be working closely with the Group's North American offices in trying to achieve these objectives."
360networks inc. in the US has filed for protection under Chapter 11 of the US federal bankruptcy code.
In Canada, a parallel filing has been made under the Canadian Companies Creditors Arrangement Act 1985 in order to extend the protection of its assets to Canada.
The company's operations include the design, construction, and installation of terrestrial and marine fibre optic systems for sale or lease to third parties or for its own use, and 360networks inc. is currently in the process of developing one of the largest and most technologically advanced fibre optic mesh networks in order to offer a range of infrastructure and network services to telecommunications and data-centric organisations.
R GRANGER & SONS LTD: IN ADMINISTRATIVE RECEIVERSHIP
Allan Graham from KPMG Corporate Recovery has been appointed administrative receiver to the long-established lace manufacturer R Granger & Sons Ltd, who are based in Long Eaton. The business was established in 1888 and has been within the Granger family's ownership since that time.
The business is now being wound down as a result of the general decline in demand for high quality lace - particularly throughout the 1990s - and the stiff competition it faced from low cost imports produced by overseas manufacturers. The receivers have made 16 redundancies. 29 employees remain with the company, and will assist the receivers over the next few months.
Allan Graham, KPMG Corporate Recovery Partner in Nottingham commented:
"This is the end of an era for this long established family business. We will now be concentrating on finding buyers for both the large amount of lace that remains in stock and the plant and machinery, including a number of Leavers machines which are used to manufacture particularly high quality lace products".
*** FORTHCOMING CREDITORS MEETINGS ***
For detailed information on ALL the British Isles insolvency's (liquidation's, receiverships, administrations, dividends, creditors) this week please visit http://www.insolvency.com/cgi-bin/gazette/liq/nots.pl
TW LW TW LW
USA 1.42 1.41 Canada 2.15 2.16
Austria 22.63 22.82 Portugal 329.84 332.58
France 10.79 10.88 Belgium 66.37 66.92
Finland 9.78 9.86 Italy 3185.65 3212.12
Germany 3.21 3.24 Sweden 15.22 15.26
Holland 3.62 3.65 Switzerland 2.50 2.51
Spain 273.74 276.02 Ireland 1.29 1.30
Australia 2.73 2.77 Denmark 12.26 12.39
Hong Kong 11.09 11.03 Euro 1.64 1.65
Africa Com 11.39 11.36 Saudi Arabia 5.33 5.30
India 66.83 66.48 Malaysia 5.40 5.37
Singapore 2.58 2.56 Norway 13.02 13.20
Japan 176.91 170.50
TW This week LW Last week.
In a last-minute bid to win European Union approval for its takeover of Honeywell, GE offered to sell a stake in its aircraft-financing arm. But the EU's deadline looms: it has to approve or block the deal by July 12th.
KPN, a debt-laden Dutch telecoms company, said that it was no longer considering a rights issue; speculation that new equity would be offered had driven its share price down too far. Rumours circulated that KPN would opt instead to look for a merger partner, possibly Belgacom, Belgium's state-controlled telecoms company.
Ryanair, the low-cost European airline, maintained its lofty altitude. Pre-tax profits for the year to March exceeded the expectations of even the most optimistic of analysts, rising 37% to EURO123m ($112m). Ryanair has cut costs and boosted margins through increasing Internet bookings, even as fuel prices have risen.
Compaq, until recently the world's biggest PC maker, reacted to a drop-off in computer hardware sales by announcing a shift to software provision and services, and a round of cost-cutting measures. Compaq hopes to increase its share of revenue from software from a fifth to a third over the next four years.
Sony plans to become one of the world's top-ten chip makers over the next four years. In-house sales are assured; chips are increasingly commonplace in the electronic devices the Japanese company produces. Demand elsewhere seems less certain.
Misys, a British software company, said it would buy Sunquest, an American healthcare-software firm, for $404m. Misys will add Sunquest's services to those of Medic Computer Systems, a complementary American medical-software outfit.
Source - The Economist
Crest Nicholson, the housebuilder, announced pre-tax profits of 25.1 million pounds, on turnover of 265.1 million, for the six months ending 30th April 2001. Earnings per share stand at 15.5p.
First Technology announced pre-tax profits of 18.2 million pounds, after exceptional charge, on turnover of 145.1 million, for the year ending 30th April 2001. Earnings per share stand at 16p on increased capital.
Greene King announced pre-tax profits of 59.7 million pounds, on turnover of 431.7 million, for the year ending 28th April 2001. Earnings per share stand at 61.3p on increased capital.
Teather & Greenwood, the stockbroker, announced pre-tax profits of 6.33 million pounds, on turnover of 34.6 million, for the year ending 30th April 2001. Earnings per share stand at 15.1p on increased capital.
MERGER NEWS
The Secretary of State for Trade and Industry has decided, on the information at present before him, and in accordance with the recommendation of the Director General of Fair Trading, not to refer the following merger/s to the Monopolies and Mergers Commission under the provisions of the Fair Trading Act 1973:Completed acquisition by Mills & Allen Limited of Colchester Poster Advertising Service
Proposed acquisition by Findel plc of Novara plc
Acquisition by 3i Group plc, through ERM Holdings Ltd, of ERM Ltd and ERM-North America Inc
Proposed acquisition by Pitney Bowes Inc of assets of Danka Business Systems Plc, namely its facilities management outsourcing business.
Proposed acquisition by Nomura International plc of assets of BASS plc, namely 988 pubs in the Bede estate
Proposed acquisition by London & Regional Properties Limited of assets of Forte (UK) Limited, namely the Strand Palace Hotel and the Regent Palace Hotel
Acquisition by Arriva PLC through The Original London Sightseeing Tour Ltd of London Pride Ltd
Completed acquisition Wilson Connolly Holdings plc of Wainhomes
Proposed acquisition by Pitney Bowes Inc. of the International Mail and Messaging Technology Business of Bell & Howell Company in Europe, Asia and the Middle East.
Completed acquisition by Fibermark Inc. of assets of Rexam plc namely its Decorative Specialities International Division
Completed acquisition HIT Entertainment PLC of Lyrick Corporation and related assets
Acquisition by Autologic Holdings plc of the Axial Automotive Distribution business of Tibbett and Britten Group plc
MELANIE JOHNSON REFERS PROPOSED ACQUISITION BY DURALAY INTERNATIONAL HOLDINGS LTD OF GATES CONSUMER & INDUSTRIAL
Acting on the advice of the Director General of Fair Trading (DGFT), Melanie Johnson, Minister for Competition, Consumers and Markets, on the 28 June referred to the Competition Commission the proposed acquisition by Duralay International Holdings Ltd of Gates Consumer & Industrials.
Miss Johnson said:
"The DGFT has advised me that the proposed acquisition raises competition concerns in respect of the market for the supply of carpet underlay which warrant reference to the Competition Commission. I have carefully considered the DGFT's advice and agree with his conclusions. I am therefore referring the proposal to the Competition Commission so that it can be fully investigated."
The decision to make a reference does not in any way prejudge the question of whether or not the merger would be against the public interest. It is for the Competition Commission to report on this after investigation. The Commission are to make their report by 18 October 2001.
Project to restore old film among those sharing £3.5 million
A project using new technology to restore old film footage was on the 28 June among 30 UK hi-tech schemes given a European seal of approval.
Science and Innovation Minister Lord Sainsbury announced that 11 of the 30 projects involving UK companies will benefit from £3.5 million in government funding under the 'EUREKA' initiative.
The projects given funding include:
Announcing the new projects, the Science and Innovation Minister, Lord Sainsbury, said:
"EUREKA aims to support companies so they can turn their bright ideas into new products.
It recognises the benefits of industry working together with universities and research establishments, and gives them support to do so. EUREKA is intended to help companies compete effectively and to create high-skilled jobs."
EUREKA aims to increase European competitiveness in new technology by promoting collaboration between companies, universities and research institutes. Projects must involve partners from at least two European member countries.
Wednesday, Thursday and Friday 24th to 26th October 2001 International Credit Exhibition & Conference The Westin Stamford, Singapore http://www.internationalcredit001.com Mailto:info@internationalcredit001.com If you have an event coming up which is credit management related and you would like us to make an entry in the Diary section please e-mail the details to jarnold@creditman.co.uk
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