Monday newspaper round-up: Xstrata, Anglo American, Royal Bank of Scotland

22nd Jun 2009 06:14

Anglo American, the mining and natural resources giant, was rehearsing its defence last night against a £41bn merger approach from Xstrata, its Anglo-Swiss rival.Anglo American confirmed a merger proposal from Xstrata but was markedly unenthusiastic, emphasising that the situation "is at a very preliminary stage and that there is no certainty that any transaction will be forthcoming," the Times reports.Royal Bank of Scotland will this week unveil a £9.6m pay package for chief executive Stephen Hester, after securing support for a long-term incentive plan from shareholders last week. At a meeting on Friday at the bank's Bishopsgate headquarters, Sir Philip Hampton, RBS's chairman, won the backing of UK Financial Investments - which controls the state's 70% RBS stake - as well as that of other top-20 shareholders, the FT reports.Meanwhile, RBS is embroiled in a new controversy after it emerged that it would be spending hundreds of thousands of pounds on entertaining at Wimbledon. RBS is due to spend up to £300,000 on corporate hospitality, despite being saved from possible collapse after being given a £20bn injection by the Government last year, the Times writes. Recession-hit shoppers in middle England have boosted sales of Waitrose's first value range. The supermarket, famed for its emphasis on quality, introduced cheaper lines under the "essential Waitrose" brand in March to counter perceptions that it was more expensive than rivals on everyday items. Mark Price, managing director, said sales of the range - described as the biggest launch in Waitrose's history - were running well ahead of the group's own projections, the FT writes.Nigerian militants attacked three Shell pipelines in just 24 hours over the weekend - sparking concerns that the escalating volatility could drive up oil prices. Shell would not say whether operations had shut down in the Niger Delta region as the company begins an investigation into the scale of the damage.But the oil giant confirmed that there have been three attacks as part of an ongoing sabotage campaign, the Telegraph reports. Aviva, the owner of Norwich Union, last night announced it was to sell its Australian business for £452 million to National Australia Bank. The life assurer said the deal was part of its strategy to focus on growth markets in Asia where it can achieve dominant positions - it is ninth in the life assurance market and eighth in wealth management in Australia, the Times writes. European Commission bosses spent €600m (£506m) of taxpayers' money this year in an attempt to rescue farmers from the effects of a collapse in dairy product prices. The intervention came as wholesale prices of butter have plunged from $3,700 per tonne to $1,800 in the past year ? with farmers bearing the brunt of the collapse, while supermarkets keep their prices up, the Times reports.Independent News & Media, is considering plans to hold a rights issue to help to raise about €100m (£84.5m) to repay money owing on a bond.The newspaper publisher, which is racing to meet a Friday deadline to refinance debt, is trying to put together a package to give bondholders half the €200 million they are owed in cash now. It hopes to pay off the rest later, the Times writes.More than 300,000 jobs will disappear in the business services sector by 2013 as contractions in both the private and public sectors take their toll, an economic think-tank will say today. Advertising faces the biggest problems, with 15,000 jobs to go within four years, says the Centre for Economics and Business Research (CEBR), the Independent reports.