• Business News Worldwide
  • Junk faxes and telephone calls - new legislation
  • Unemployment figures - CBI Comment
  • Engineering Turnover and Orders - October 1998
  • Retail Sales - November 1998
  • Business Investment
• Credit Management Reports & News
  • Preparing British Business for the Euro
  • European Single Currency (Taxes) Regulations
  • Competitiveness White Paper - CBI response
• Insolvency News
  • Forthcoming Creditors Meetings
• Currency Exchanges
• Company News
  • Company updates
  • Southern Electric and Scottish Hydro Electric
  • Merger Clearances
• Internet and IT News
  • Free Christmas cards - Follow Santa
• Diary
• Mailing List

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END IN SIGHT FOR JUNK FAXES AND UNWANTED PHONE CALLS - NEW REGULATIONS WILL GIVE CONSUMERS GREATER PROTECTION

Consumers are to get greater protection against unwanted direct marketing "junk" faxes and phone calls, DTI Minister Barbara Roche, announced last week.

People will also be able to "opt out" of receiving unwanted direct marketing phone calls by registering their name with a centralised list, and companies will be able to sign up to a similar scheme to avoid receiving "junk" faxes. Marketers will also be required to offer a contact address or freephone number so that people can contact them to ask to be removed from their databases.

Welcoming the Regulations, Mrs Roche said:

"Being disturbed at home by an unwanted phone call from someone trying to sell you a product you don't want is for many an irritating invasion of privacy.

"It's even more frustrating for people who have a fax at home who receive unwanted junk faxes that not only use up their fax paper, but can also disturb them at night.

"Small companies, in particular, are frustrated at this. Having their fax machines clogged by unwanted advertising and "joke" faxes not only costs money, but important business correspondence can be delayed as a result.

"Thankfully, most businesses are committed to responsible direct marketing practices; these Regulations which will ensure greater protection for individuals and businesses against those unscrupulous operators who do sadly exist."

The Director General of Telecommunications, will have responsibility for running the "opt- out" schemes and for awarding a contract to run these services - details of how to register will be publicised next year.

The regulations will be enforced by the Data Protection Registrar's Office.

UNEMPLOYMENT FIGURES - CBI COMMENT

"Today's figures present a somewhat mixed picture. The slight increases in underlying unemployment on both measures is unsurprising given other evidence of an increasing broad-based slowdown in the economy. Despite the rise in total employment, the accelerating rate of fall in manufacturing jobs - now down nearly 70,000 on a year ago - is a matter of concern.

"This data supports our view that the economy is set to slow sharply, but avoid an outright recession. Recent CBI surveys suggest that manufacturing is moving into recession while in the services sector growth is declining. We would expect employment trends to weaken over the next four months. The balance of risks, however, remains tipped towards the downside, and further interest rates cuts may well be needed in the New Year."

ENGINEERING TURNOVER AND ORDERS - OCTOBER 1998

This was due to a decrease of 1.5 per cent in export turnover more than offsetting a 0.1 per cent increase in home turnover. Compared to the same period a year ago total turnover increased by 3.2 per cent.

Total orders on hand at the end of the three months to October 1998 decreased by 2.8 per cent compared to the level at the end of the previous three months, and increased by 0.4 per cent compared to the level at the end of the three months to October 1997.

Total turnover of the machinery and equipment engineering industries in the three months to October 1998 decreased by 3.1 per cent compared with the previous three months. There were decreases of 5.4 per cent in export turnover and 1.5 per cent in home turnover. Compared to the same period a year ago total turnover decreased by 2.2 per cent.

Total orders on hand at the end of the three months to October 1998 were 5.8 per cent lower than the level at the end of the previous three months, and were 9.2 per cent down on the level at the end of the same period a year ago. Compared to the levels at the end of the three months to October 1997 home orders on hand fell by 11.8 per cent and export orders on hand fell by 4.7 per cent.

Total turnover of the electrical and optical equipment engineering industries in the three months to October 1998 increased by 0.6 per cent compared to the previous three months. This was due to increases of 1.0 per cent in home turnover and 0.1 per cent in export turnover. Compared to the same period a year ago total turnover increased by 5.9 per cent.

Total orders on hand at the end of the three months to 1998 were 0.6 per cent lower than the level at the end of the previous three months and were 8.6 per cent up on the level at the end of the same period a year ago. Compared to the levels at the end of the three months to October 1997 home orders on hand fell by 1.3 per cent and export orders on hand rose by 21.6 per cent

. Total turnover of the engineering industries in the three months to October 1998 averaged £7.4 billion at current prices, a decrease of 3.2 per cent compared with the same period a year ago. This was due to falls of 3.5 per cent in home turnover and 2.9 per cent in export turnover.

Turnover in the home and export markets averaged £4.2 billion and £3.2 billion respectively in the three months to October 1998.

At the end of the three months to October 1998 total orders on hand for the total engineering industries were estimated at £24.4 billion, a decrease of 2.2 per cent compared to the level at the end of the same period a year ago.

Total turnover of the machinery and equipment engineering industries in the three months to October 1998 averaged £2.7 billion at current prices, a decrease of 3.4 per cent compared with the same period a year ago. This was due to decrease of 5.0 per cent in export turnover and 2.5 per cent in home turnover.

Turnover in the home and export markets averaged £1.7 billion and £1.0 billion respectively in the three months to October 1998.

At the end of the three months to October 1998 total orders on hand for the machinery and equipment engineering industries were estimated at £10.8 billion, a decrease of 9.5 per cent on the level at the end of the same period a year ago. Compared to the levels at the end of the three months to October 1997 home orders on hand fell by 10.3 per cent while export orders on hand fell by 7.9 per cent.

Total turnover of the electrical and optical equipment engineering industries in the three months to October 1998 averaged £4.7 billion at current prices, a decrease of 3.1 per cent compared with the same period a year ago. This was due to falls of 4.2 per cent in home turnover and 1.9 per cent in export turnover.

Turnover in the home and export markets averaged £2.5 billion and £2.2 billion respectively in the three months to October 1998.

At the end of the three months to October 1998 total orders on hand for the electrical and optical equipment engineering industries were estimated at £13.6 billion, 4.4 per cent higher than the level at the end of the same period a year ago. Compared to the levels at the end of the three months to October 1997 home orders on hand fell by 4.8 per cent while export orders on hand rose by 17.4 per cent.

RETAIL SALES - NOVEMBER 1998

Based on non-seasonally adjusted data, the average weekly value of retail sales in November was £4,100 million, 3.1 per cent higher than in November 1997. In September to November the value of sales in current prices was 3.0 per cent higher than in the same period a year earlier.

Volume seasonally adjusted (1995=100)

In September to November the seasonally adjusted volume of sales by predominantly food stores increased by 0.5 per cent compared with the previous three months; sales by predominantly non-food stores increased by 0.4 per cent.

Value not seasonally adjusted (1995=100)

In September to November the value of sales (not seasonally adjusted) by predominantly food stores was 4.3 per cent higher than a year earlier; sales by predominantly non-food stores were 1.5 per cent higher.

Value of sales by commodity not seasonally adjusted (1995=100)

In September to November the estimated value of sales (not seasonally adjusted) of food, drink and tobacco was 3 per cent higher than a year earlier; sales of clothing and footwear remained unchanged; sales of household goods were 3 per cent higher and sales of other non-food products were 3 per cent higher.

BUSINESS INVESTMENT

The revised estimate of business investment by the private and public sector manufacturing for the third quarter fell by 5.6 per cent over the previous quarter and 3.0 per cent over the third quarter of 1997. The third quarter figure was £4,939 million.

Within the private sector, the revised estimates of business investment for the third quarter show services rose by 3.2 per cent and construction and other production by 5.7 per cent, all over the previous quarter. Services rose by 15.3 per cent and construction and other production by 15.4 per cent, all over the third quarter of 1997. The third quarter 1998 figures were £3,779 Million for construction and other production and £16,186 Million for services.

The revised estimate of business investment by non-manufacturing public corporations shows the third quarter was unchanged from the previous quarter and 12.1 per cent lower than the third quarter of 1997. The third quarter figure was £517 million.

TOP OF PAGE

PREPARING BRITISH BUSINESS FOR THE EURO

EUROPEAN SINGLE CURRENCY (TAXES) REGULATIONS

The Economic Secretary, Patricia Hewitt, commented

"The Government has consistently stressed the importance it attaches to doing everything it can to help British business prepare for the introduction of the single currency.

These regulations meet the concerns that have been raised with the Government about possible unintended tax consequences which might otherwise have arisen when the single currency comes in on 1 January 1999. I am very pleased that following comments received from business on the draft text, we can now put the regulations in place in time for the start of the single currency."

The final regulations largely follow the draft version. They provide for

1. continuity of tax treatment for assets and contracts in participating currencies which are converted into euro, with the appropriate treatment for accrued interest on such interest-bearing securities which are converted into euro;
2. continuity of tax treatment for financing transactions involving debt securities in participating currencies which are redenominated, renominalised or reconventioned while out on loan/repo and the appropriate tax treatment of the lender/original holder and the intermediary;
3. tax relief for the costs of redenomination into euro from participating currencies of companies' capital assets; and
4. continuity of treatment in the case of the special rules on local currency elections and accounting for controlled foreign companies.

1. The 1998 Finance Act enabled the Government to make regulations to deal with unintended tax consequences arising from the start of the single currency in other member States. The aim was to ensure that the conversion into euro of assets or financial instruments or contracts in participating currencies would not give rise to tax charges that would not otherwise have arisen.
2. Proposals for regulations were announced in July for initial comment; and a draft text of the regulations was put out to consultation on 18 November. The consultation period ended on 9 December 1998.
3. The final regulations, the European Single Currency (Taxes) Regulations [SI 1998 No. 3177 are today being laid by HM Treasury before the House of Commons. The text of the regulations can be found on the Inland Revenue website and printed copies will be available from the Stationery Office shortly.
4. The final text reflects a number of useful points that were highlighted by the consultation. In particular, the comments received have led to
   • some rewording of the definitions for greater clarity - for example in relation to the roundings allowed on the renominalisation of a security;
   • some changes to ensure greater internal consistency within the regulations - for example to confirm that the regulations on local currency elections, whether whole trade or part trade, do not preclude a company from drawing up its accounts for the relevant trade in a participating currency after that currency becomes part of the euro;
   • some extensions of the benefit of the new rules - for example to allow continuity of treatment not just for the simple redenomination of long-term assets and liabilities but also for any renominalisation and reconventioning that is consequent upon it.
5. Two specific points were raised in the consultation. On the question about the level of a de minimis exemption for financing transactions, no clear answer emerged; however, the Government decided it would be prudent to increase this amount to EUR 500. On the second question - whether there should be a precise timing test in the definition of euroconversion - there was no strong view expressed, so the wording of this definition has been left unchanged.
6. As responses to the consultation noted, further issues which will need to be resolved may arise as the single currency becomes more established. The Inland Revenue will continue to consider these issues with the markets if and when they arise.

COMPETITIVENESS WHITE PAPER - CBI RESPONSE

"The key to Britain's economic success is the ambition, capabilities and performance of individual businesses, and the Government's role is to create a framework of economic stability and incentives within which business can flourish. The Government also needs to help deliver the science base and skills, through an improved education system, on which our economy will increasingly rely. It can also play a useful role in supporting small businesses and developing a national culture of innovation and entrepreneurship. The programme outlined in the White Paper is sensibly focussed on these key government functions".

In particular the CBI welcomed:

• the Commitment to increase science spending, already announced in the summer.
• DTI support for the CBI's "Fit for the Future" campaign, launched on Monday (14 December), to increase the number of companies adopting best practice.
• Objective to make sure that the UK becomes a world leader in electronic commerce, with the right regulations and encouragement to business to exploit its potential.
• Commitment to fostering and removing barriers to the development of the biotechnology industry, where the UK has a strong present position.
• Focus on the need to develop close links between universities and business, so that the UK fully exploits its science base.

TOP OF PAGE

*** Forthcoming Creditors Meetings ***

Contributed byhttp://www.insolvency.co.uk

For more detailed information and ALL the British Isles insolvency's (liquidation's, receiverships, administrations, dividends, creditors) please visit http://www.insolvency.co.uk

 
  From   21/12/98  to  29/12/98  
  Number of Creditor meetings :   170  

Section   Company                          Time      Venue 


138   Scotland - Interim Liquidator calling Creditors Meeting

   21/12/98   
   CTD Management Systems Ltd              12.00 pm  Glasgow
   Codona (Loudoun) Ltd                    11.00 am  Glasgow

   22/12/98   
   Bocker Roberts Ltd                      12.00 pm  Edinburgh

   23/12/98   
   Enterprise Innovation Products Ltd      11.00 am  Paisley
   Magnum Plastics Ltd                     11.00 am  Glasgow

23    Administrator Calling a meeting of Creditors

   22/12/98   
   Essex Furniture Plc                     10.30 am  London

48    Receiver calling unsecured Creditors Meeting 

   21/12/98   
   Argos Electronic Circuits Ltd           10.00 am  Southampton
   Car Supermarkets (Manchester) Ltd       10.30 am  Manchester
   Hilcote Hall Ltd                        11.00 am  Manchester
   Peter Scott Printers Ltd                10.00 am  Manchester

   23/12/98   
   Khodabukus Enterprises (UK) Ltd         11.00 am  London

95    Members converting to Creditors Voluntary Liquidation

   21/12/98   
   Blandford Thoroughbreds Ltd             10.45 am  Oxford
   Brownlow Investments Ltd                11.45 am  Oxford
   Employ Advert Ltd                       11.00 am  Oxford
   Hunter Chase Ltd                        12.15 am  Oxford
   Millman Publishing Ltd                  10.00 am  Oxford
   RI (1995) Ltd                           11.15 am  Oxford
   Richbell International Ltd              10.30 am  Oxford
   Terry Smith Publishing Ltd              11.30 am  Oxford
   Usual Fact Ltd                          10.15 am  Oxford
   Verulam Investments Ltd                 12.00 am  Oxford

   22/12/98   
   Medway Oddfellows Club & Ins. Ltd       11.00 am  Ashford

98    Creditors Voluntary Liquidations

   21/12/98   
   AGM Organisation Ltd - The              11.00 am  Luton 
   Advanced Computer Components Ltd        02.30 pm  London
   Allen Property Services Ltd             11.30 am  Edgware
   Atlas International Services Ltd        12.00 pm  London
   Big Star Mail-Order Ltd                 11.30 am  London
   Bucks Data Management Ltd               11.30 am  Gerrards Cross  
   Bumble Bugs Ltd                         10.15 am  Nottingham      
   Car Bodyshop Ltd                        12.00 pm  Halesowen       
   Carnation (London) Ltd                  12.00 pm  London
   Casu Personnel Ltd                      12.00 pm  London
   Celebrity Card Co Ltd - The             10.30 am  Birmingham      
   Claimar (UK) Ltd                        11.00 am  Birmingham      
   Clyde Commissionong Services Ltd        10.00 am  Glasgow         
   Danelaw Industries Ltd                  10.00 am  Peterborough    
   Datum Building Services Ltd             12.00 pm  Birmingham      
   Dornier Printing Machinery Ltd          11.00 am  London
   Fanon Trust Ltd - The                   03.00 pm  London
   GRP Fabrications Ltd                    11.00 am  Peterborough    
   Grays Brothers East Finchley Ltd        03.30 pm  Lutterworth     
   Great Style Ltd                         04.00 pm  London 
   H M Garage Services Ltd                 11.00 am  Preston
   Hadida Ltd                              10.00 am  London 
   Henry Fallas & Sons Ltd                 10.15 am  Wakefield       
   IBS (Midlands) Ltd                      12.00 pm  Birmingham      
   Insulation & Services (Kent) Ltd        11.00 am  London 
   Internet Resources Group Ltd            11.30 am  Worthing
   J & R Plumb Heat & Leadwork Spec Ltd    11.30 am  Pontyprennau    
   Kudos Print Ltd                         02.30 pm  Birmingham      
   Kydz Ltd                                11.00 am  Glasgow 
   Kydz World Ltd                          12.00 pm  Glasgow 
   LST Clinics Ltd                         10.30 am  Birmingham      
   Lumina Ltd                              10.15 am  Bromley 
   Malana Ltd                              10.45 am  Bromley 
   Modella Ltd                             02.00 pm  London  
   Nene Trailer Services Ltd               11.30 am  Peterborough    
   Okwear Ltd                              01.00 pm  London  
   Omni Weighfill Technologies Ltd         11.30 am  Cambridge       
   P G Technical Systems Ltd               10.45 am  Croydon 
   P J Hallewell Engineering Ltd           11.30 am  Southampton     
   Peninsular Fashions Ltd                 02.30 pm  London  
   Pink Triangle Projects Ltd              03.00 pm  London  
   Polymer Scotland Ltd                    11.00 am  Glasgow 
   Printz London Wash Ltd                  02.00 pm  London  
   Quality Air Installations Ltd           12.30 pm  Reading 
   R & B Creative Services Ltd             12.00 pm  London  
   R & R Tomlinson Ltd                     03.00 pm  Leeds   
   RRS Products Ltd                        11.00 am  Carlisle
   Ricmar Textiles Ltd                     03.00 pm  Stanmore
   Robert Bailey & Co Ltd                  11.00 am  Gloucester      
   Samantha Allen Interior Design Ltd      11.00 am  Egham   
   Santa Ltd                               03.00 pm  London  
   Severn Conservatories (Shrewsbury) Ltd  02.30 pm  Birmingham      
   Silser (Racing & Construction) Ltd      02.15 pm  Newcaslte       
   Swifthold Ltd                           12.00 pm  London  
   Targaset Ltd                            11.45 am  London  
   Teco Ltd                                03.00 pm  London  
   Tiggy Knitwear Manufacturing Co Ltd     03.15 pm  Manchester      
   Timber Truss & Build Pack Ltd           11.30 am  Lutterworth     
   UK International Security Group Ltd     10.30 am  Holmfirth       

   22/12/98   
   Allbrooks Grooming Products Ltd         02.30 pm  Marks Tey       
   Ammeg Ltd                               11.00 am  Birmingham      
   Angling Centre Ltd - The                11.00 am  Newton Abbot    
   Aragon Developments Ltd                 02.00 pm  Halesowen 
   Arched Window Co Ltd - The              02.30 pm  Birmingham
   Arco Mechanical Services Ltd            11.00 am  Birmingham
   Auto Trade Centres Ltd                  11.00 am  Bridghouse
   Automill Ltd                            10.30 am  Perth 
   Brook Productions (1986) Ltd            11.00 am  London
   C A Catering Engineering Group Ltd      10.00 am  Southampton
   C A Catering Engineers Ltd              10.15 am  Southampton
   C L Whinnett Ltd                        12.00 pm  Royston  
   Croome Building Services Ltd            11.30 am  Rotherham
   E S A (Yew Tree) Ltd                    11.00 am  Wolverhampton   
   Eastcroft Garage Ltd                    11.00 am  Birmingham
   Elroma Ltd                              03.00 pm  London 
   Energy Products & Systems Ltd           10.30 am  Manchester
   Evana Ltd                               03.00 pm  London 
   First Choice Logistics (UK) Ltd         12.00 pm  London 
   Frances Newton Ltd                      11.30 am  Gerrards Cross  
   Garex Ltd                               02.00 pm  London 
   Grandstride Leasing Ltd                 10.30 am  London 
   Guage Ltd                               03.15 pm  London 
   Hawkhill Upholstery Ltd                 11.00 am  Dundee 
   Hi-Tech Minilab Ltd                     11.00 am  Grimsby
   Hopper Refractories Ltd                 10.00 am  Newcastle-u-Tyne
   IRC Group Services Ltd                  11.00 am  Bournemouth
   Integrated Software Systems Ltd         02.30 pm  Northampton
   JS Collyer (Cargo Claims) Ltd           10.15 am  Crawley
   JS Collyer (Holdings) Ltd               10.15 am  Crawley
   Jakmar Belts Ltd                        11.00 am  Sunderland
   Jimmys Collection Ltd                   11.00 am  London
   London Express Despatch Ltd             12.00 pm  London
   Lord & Bowes Ltd                        11.00 am  Manchester
   M & J Cycles Ltd                        11.30 am  Brighton  
   MSL Property Maintenance Ltd            12.00 pm  Manchester
   Marketing Resource Management Ltd       02.30 pm  Northampton
   Mason Brown Engineering Ltd             10.30 am  St Asaph
   Meakin Engineering Ltd                  12.00 pm  Manchester
   Milsom Ltd                              01.00 pm  London 
   Modular Connection Ltd                  12.00 pm  Glasgow
   Murray High Ltd                         11.30 am  Maidstone
   Olympic Manned Guarding Ltd             03.00 pm  Manchester
   Parcel Exchange Ltd - The               11.30 am  Leeds  
   Park Cottage Ltd                        11.00 am  Maidstone       
   Phone Me Communications Ltd             01.30 pm  Watford
   Pugcross Ltd                            02.30 pm  London 
   R E Price & Co Ltd                      11.00 am  Paisley
   Redgrove Engineering Ltd                03.15 pm  Crawley
   Roadfast E C Ltd                        11.30 am  Bristol
   Scorpian Logistics Ltd                  02.30 pm  Hornchurch      
   Selmonde Ltd                            10.30 am  Birmingham      
   Solo Hair Cosmetics Ltd                 11.00 am  Winchester      
   Star Supplies (Domestic) Ltd            12.00 pm  Manchester      
   Synap Ltd                               12.00 pm  Southampton     
   Widd (1934) Ltd                         11.00 am  Gomersal
   Worsley Plumbing Services Ltd           11.30 am  Manchester      
   Zarixon Ltd                             03.30 pm  London  
   Zat Ltd                                 09.30 am  London  

   23/12/98   
   Amathyst Ltd                            02.00 pm  Southport       
   Banya Ltd                               11.00 am  London          
   Birchington Fast Foods Ltd              12.00 pm  London          
   Chambourne Ltd                          10.30 am  Reading         
   County Hamper and Basket Works Ltd      11.00 am  Leicester       
   Driveway International Ltd              11.00 am  Bolton          
   Frog Security Ltd                       03.00 pm  Swansea         
   Gill-Bore Engineering Co Ltd            10.30 am  Sheffield       
   Inn Beer Supplies (1995) Ltd            11.30 am  Altrincham      
   Ivyglaze Ltd                            02.30 pm  Bradford        
   JPA Systems Ltd                         10.30 am  Nottingham      
   Layton Lingerie Ltd                     10.00 am  London  
   Mainbrae Ltd                            10.30 am  Stirling
   Mascara Ltd                             11.30 am  Newcastle-u-Tyne
   Midland Coating Co Ltd                  11.30 am  Bradford
   Panza Fashions Ltd                      10.00 am  London  
   Paradise International Calls Ltd        10.30 am  London  
   Pipeline Stoppers Ltd                   11.00 am  Leicester
   Power Data Systems Ltd                  03.00 pm  London  
   Quddos Ltd                              10.30 am  London  
   Sabim Resurfacing Ltd                   12.00 pm  Preston 
   Shagatam Enterprises Ltd                11.00 am  London  
   Sparkdown Ltd                           02.00 pm  Reading 
   Spiritleague (Engineering) Ltd          10.30 am  Bucks
   Unique Furnishings Ltd                  10.30 am  Manchester
   Via Brand Ltd                           11.00 am  London
   Whitelite Windows Ltd                   03.00 pm  London

   24/12/98   
   Ranfurly Services Ltd                   11.30 am  Northwood
   SP Enterprises Ltd                      11.00 am  London 

TOP OF PAGE

                
              TW        LW                       TW         LW

USA         1.6923    1.6641      Canada        2.6103    2.5654
Austria    19.6988   19.4289      Portugal    287.044   283.296
France      9.3907    9.2634      Belgium      57.7720   56/9788
Finland     8.5110    8.3963      Italy      2772.54   2734.95
Germany     2.8006    2.7615      Sweden       13.6250   13.4461
Holland     3.1545    3.1131      Switzerland   2.2638    2.2435
Spain     238.260   234.879       Ireland       1.1274    1.1121
Australia   2.7339    2.6864      Denmark      10.6594   10.5172
Hong Kong  13.1111   12.8943      ECU           1.4251    1.4082
Africa Com 10.2806    9.9018      Saudi Arabia  6.3495    6.2471
India      71.9940   70.8657      Malaysia      6.4306    6.3236
Singapore   2.7970    2.7403      Norway       13.2763   12.5670
Japan     198.270   195.174

TW  This week     LW  Last week.

TOP OF PAGE

Freepages announced pre-tax losses of 26.6 million pounds, on turnover of 21.3 million, for the year ending 31st October 1998.

MFI Furniture announced pre-tax losses of 26 million pounds, after exceptional charge, on turnover of 450.3 million, for the 28 weeks ending 7th November 1998.

Securicor announced pre-tax profits of 83.5 million pounds, after exceptional charge, on turnover of 1,223 million, for the year ending 30th September 1998. Earnings per share stand at 9.8p.

KPMG, one of the big five accounting firms, is considering a flotation of part of its consultancy arm. But the accounting firm wants to retain control. A flotation may run into regulatory problems in America.

Source: The Economist

MORE BRITISH PURCHASES OF AMERICAN COMPANIES

National Grid, a power-transmission company, is buying New England Electric System for $3.2 billion in cash. Emap, a magazine publishing group, agreed to buy Petersen for around $1.5 billion. But one also the other way: Coca-Cola bought 30 of Cadbury Schweppes' non-American soft-drinks brands for $1.85 billion. Pepsi-Cola is expected to protest vigorously.

Source: The Economist

KIM HOWELLS CLEARS PROPOSED ACQUISITION OF SOUTHERN ELECTRIC BY SCOTTISH HYDRO ELECTRIC

Dr Howells made his decision in accordance with the advice of the Director General of Fair Trading (DGFT) and with the views of the Director General of Electricity Supply (DGES).

Announcing his decision, Dr Howells said:

"I have considered carefully the advice of the DGFT and the views of the DGES on this case. They both consider that the concerns posed by the acquisition could be met by assurances from the companies involved.

"Scottish Hydro have given assurances to the Secretary of State to address the regulatory concerns of the DGES. These include assurances relating to Southern Electric's financial and management resources, to ring-fencing Southern Electric's finances, and to ensuring that the DGES continues to have access to the information which he needs to carry out his duties. Scottish Hydro have given assurances that their Public Electricity Supply (PES) business will be ring-fenced from Scottish Hydro's other activities, that there will be no new electricity contracts between Scottish Hydro and Southern Electric's PES business, and that they will refrain from constructing or acquiring generation plant embedded in Southern Electric's system without the prior permission of the DGES. The assurances also address the need to ensure that the merger does not hamper the introduction of competition in the supply of electricity to smaller customers.

"The DGES intends to incorporate most of the commitments given by Scottish Hydro into the conditions of Southern Electric's or Scottish Hydro's licences. Scottish Hydro have given an assurance that from the time of the merger until the licence modifications are made, they and Southern Electric will behave as if the modifications were already in place.

"The DGES considered that the concerns raised by the merger could be met by assurances of the type which have now been given by Scottish Hydro. The DGFT also considered that the regulatory concerns posed by the merger could be met by these assurances. He advised that the merger would not give rise to competition concerns which merited reference to the MMC. Taking into account the assurances which have been given, I agree that there are no competition or regulatory concerns which warrant a reference to the MMC."

ASSURANCES GIVEN TO THE SECRETARY OF STATE FOR TRADE AND INDUSTRY BY SCOTTISH HYDRO ELECTRIC PLC

1. ensure that sufficient management and financial resources continue to be provided to ensure that the introduction of competition has been fully completed in the authorised area of Scottish Hydro Electric plc by April 1999 and in the authorised area of Southern Electric plc by June 1999;
2. take no steps likely to restrict or prevent Southern Electric plc's compliance or ability to comply with the undertakings given to the Director General of Electricity Supply (DGES) to address customer and competition concerns arising from the further delay in market opening;
3. ensure that sufficient financial and management resources and other facilities are available to enable Southern Electric plc to carry out its statutory and licence obligations;
4. ensure that the DGES is provided with such information from any company in the Scottish Hydro Electric group as he requires in relation to the exercise of his regulatory functions;
5. co-operate with the DGES in ensuring appropriate financial separation and financial independence for Southern Electric plc;
6. use all reasonable endeavours to maintain the investment grade status of Southern Electric plc's rated debt;
7. co-operate in maintaining the timeliness and extent of published accounting information on Southern Electric plc;
8. ensure that published regulatory accounts are available to the public by 30 September of each year;
9. ensure that Southern Electric plc does not, except with the written consent of the DGES, agree to accept cross-default provisions that would be triggered by any breach of financing conditions elsewhere in the Scottish Hydro Electric group;
10. place a financial ring-fence around Southern Electric plc's PES business; and place generation outside this ring-fence;
11. restructure its businesses within three years so as to place generation, and any non-electricity activities, in separate companies which would be affiliates but not subsidiaries or parent companies of the remaining electricity activities. In the meantime, it will ensure that any new generation investment or other significant diversification by Scottish Hydro Electric plc will be undertaken by a separate subsidiary company, and not by the company holding the PES licence; and dealings between the PES licensee and this subsidiary will be at arm's length and on normal commercial terms;
12. separate the operation and management of the distribution and supply businesses of both Scottish Hydro Electric plc and Southern Electric plc and agree to modifications to their two PES licences to impose a duty on the PESs to facilitate competition in generation and supply;
13. place Scottish Hydro Electric plc's second tier supply business in England and Wales in the same position as Southern Electric plc's second tier business as regards sales to under 100 kW customers before Southern Electric plc's market is open to competition;
14. agree to modifications to Scottish Hydro Electric plc's second tier supply licence in England and Wales to prohibit sales to designated customers in Southern Electric plc's area;
15. agree to modifications to Southern Electric plc's second tier supply licence in Scotland to prohibit sales to designated customers in Scottish Hydro Electric plc's area;
16. not enter into any new electricity contracts between Scottish Hydro Electric plc and Southern Electric plc's first tier supply business;
17. refrain from constructing or acquiring generation plant embedded in Southern Electric plc's system, without prior permission from the DGES;
18. ensure that Southern Electric plc agrees to appropriate licence modifications;
19. ensure that where the above matters relate to licence modifications, the parties will act as if they are already in place from the time of the merger.

MERGER CLEARANCE

Proposed acquisition by IPC Information Systems Inc of Reuters Voice Systems

Proposed merger between Jones Lang Wootton and Lasalle Partners Inc

Joint venture between Northern Examinations and Assessment Board and the Associated Examining Board - Assessment and Qualifications Alliance (AQA)

Proposed acquisition by Employers Re Corporation (UK) Limited of Eagle Star Reinsurance Company Limited

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FREE CHRISTMAS CARDS - FOLLOW SANTA

www.red-triangle.com www.christmas98.com

Follow Santa on his travels:

www.noradsanta.org

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12 February 1999
An important seminar on the New Data Protection Legislation
Presented by the Institute of Credit Management
The Rembrandt Hotel, London, SW7
#210.00 members of the ICM, #250.00 non-members
Tel the ICM on 01780-722907

March 9th to the 11th March 1999
Credit 1999
The Novotel, Hammersmith, London W6
Free Conferences and Workshops
Free Exhibition
Top Industry Speakers

17 - 19 November 1999 Wednesday to Friday
International Credit Exhibition & Conference
Raffles City Convention Centre
The Westin Stamford, Singapore
http://www.internationalcredit99.com
Mailto:info@internationalcredit99.com

# = pounds sterling

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