Monday newspaper round-up: Shire, China housing, IGas

2nd Jun 2014 07:01

Shire has lined up a $5bn credit facility from banks led by Citigroup to finance a takeover offer for NPS Pharmaceuticals, an American developer of a new drug for sufferers of a debilitating bowel condition. An initial approach to NPS by Shire has been rebuffed, according to insiders. However, a former London hospital doctor with ties to both companies is acting as a go-between. NPS won regulatory approval for a drug to treat short bowel syndrome ? a condition in which the intestine is too short to absorb nutrients, usually after surgery for digestive illnesses. - The Times Further fears that the Chinese economy is slowing have been raised by an index of house prices in the country's 100 biggest cities that recorded its first monthly drop for nearly two years. Concerns surrounding the Chinese property market, including speculation that prices in some provinces could collapse, have grown as housing inventories have soared and liquidity among smaller developers has evaporated. Chinese state media have been at pains to describe the property sector, which represents 16% of GDP and a quarter of all fixed-asset investment, as "too big to fail". - The Times Fracking will take place in the East Midlands next year for the first time, under plans from shale gas explorer IGas. Andrew Austin, IGas chief executive, told the Telegraph it was preparing to submit planning applications to drill and frack to test the flow of gas at two new locations, one either side of the Pennines. "It is our intention to have permits in place such that we can drill and flow test wells at two sites - one in the North West and one in the East Midlands - in 2015," he said. - The Daily TelegraphTakeover target AstraZeneca has received a much-needed boost from successful trials of new cancer drugs. Results from its treatment dubbed the 'great white hope' in the battle against lung cancer showed tumours shrinking or stabilising in 94% of cases. And a separate study found that a combination of two of Astra's drugs nearly doubled the length of time that certain ovarian cancer patients lived without their disease getting worse. - The Daily MailBritain must seize the opportunity to reform the European Union in the wake of elections that exposed deep divisions within the 28-nation bloc, the head of the Confederation of Business Industry will say on Monday. John Cridland, the director-general of Britain's biggest business lobby group, will tell an audience of business leaders that the voter backlash in the European Parliamentary elections over sluggish growth, savage cuts and high unemployment has "focused the mind" of politicians. - The Daily TelegraphSaudi Arabia and the United Arab Emirates are thought to be readying a financial aid package of $20bn (£12bn) to boost Egypt's economy and support the incoming government of ex-Field Marshal Abdulfattah el-Sisi. The oil-rich Middle East powerhouse Arab nations, which combined account for more than a tenth of the world's supply of crude, have already held preliminary talks with authorities in Cairo to discuss how the line of funding will be structured, according to a report in the Arabic media over the weekend. - The Daily TelegraphBusiness leaders are not doing enough to protect their companies from the risks posed by major global events, the Institute of Directors (IoD) has warned. In a report published today, the IoD said the increasingly inter-connected world means that government debt crises, extreme weather events and social instability can have knock-on effects for British firms. - ScotsmanAB