Sunday newspaper round-up: Bank levy, Ireland, Easyjet...

14th Nov 2010 11:25

George Osborne is expected to make fresh concessions over his banking levy to avoid an exodus of leading international banks from Britain. HSBC and Standard Chartered have been lobbying heavily for further changes to how the levy affects their overseas businesses.But the Chancellor is standing firm on his target of raising £2.5bn from about 15 leading British and foreign banks operating here, prompting a battle between them over who pays what.Central to negotiations is the contribution being demanded from HSBC and Standard Chartered, the Mail on Sunday reports.The Observer adds that the government is preparing to cut the tax it expects to impose on City banks through George Osborne's £2.5bn a year levy, prompting a furious reaction from tax experts and opposition MPs. After being alerted by leading banks that the proposed levy could raise an unexpectedly high £3.9bn a year, the Treasury is considering cutting the rate of the tax on UK and international banks to ensure the chancellor's £2.5bn target is not breached.The City watchdog has angered the world's biggest banks by spreading its clampdown on bonuses to financiers who rarely set foot in London. Executives in New York, Tokyo and Switzerland are all being ordered to comply with the rules, which put tight curbs on remuneration. The Financial Services Authority (FSA) has determined that any individual who has a significant influence over decisions taken in Britain needs to be included, the Sunday Times reports.A proposed EU tax meant to raise billions from banks could badly hit the UK's insurance and property sectors, their trade bodies warned this weekend. Two industry lobby groups, the Association of British Insurers (ABI) and the British Property Federation (BPF), led by Liz Peace, have approached the Commission with concerns that their members could be liable to pay its proposed Financial Activities Tax - the so-called FAT tax, the Sunday Independent reports.European officials are trying to force Ireland to agree to a big rise in its rate of corporation tax as a condition of an economic rescue package.Rumours of an €80bn (£69bn) European Union bailout of the Irish economy gathered momentum this weekend as sources in Brussels claimed "preliminary" talks were taking place. Although Ireland has yet to make a formal request for aid from the €750bn eurozone bailout fund, City sources said tentative discussions had taken place on the structure of any rescue. Last night, Brian Cowen, speaking for Taoiseach, said there had been "no discussions of any sort about funding", the Sunday Times reports.Easyjet will pay a dividend to shareholders for the first time as part of a strategic revamp to be unveiled this week by Carolyn McCall, its new chief executive. The dividend commitment, which analysts expect to be announced on Tuesday alongside the full-year results, represents a sharp departure from the airline's past. Easyjet has not made a payout to shareholders since it floated a decade ago. Instead ? in common with other low-cost airlines ? it has used its cash to buy aircraft and expand rapidly, the Sunday Times reports.Flybe is finalising plans for a stock-market flotation that is expected to value Britain's biggest domestic airline at about £200m. The carrier, which was once bankrolled by Sir Jack Walker, the late steel tycoon who owned Blackburn Rovers football club, will use the cash to fund an ambitious expansion plan, including the possible takeover of two rivals. Industry sources say one of the acquisition targets is Flybaboo, a Swiss regional airline based in Geneva. Another is thought to be a Finnish carrier, the Sunday Times reports.Harvester restaurant and Toby Carvery owner Mitchells & Butlers (M&B) has put 53 pubs on the market in the latest phase of its £500m-plus sell-off programme. M&B is looking to withdraw from the drinks-led market to concentrate on food-centred pubs. John Lovering, the former chairman at retail giant Debenhams, announced this refocus of M&B in March, the Sunday Independent reports.Warner Music is contemplating a $750m (£470m) bid for EMI's recorded music division. Wall Street sources say it could be lodged with EMI's owner, private equity group Terra Firma, within weeks. Although Terra Firma boss Guy Hands says he is not interested in a sale, the UK-born tax exile is understood to be under pressure from Citigroup to do a deal. The US investment bank lent Terra Firma £2.8bn to buy EMI three years ago, the Observer reports.Sportingbet, the online gambling operator, is examining a merger with Unibet, its Swedish rival, that would create a £600m group. The companies are understood to have held preliminary discussions about combining the businesses and are expected to hold further talks over the coming weeks. Both have concerns and "there are still lots of hoops to go through", according to one insider. It is likely that any announcement about a deal would not take place until well into next year, said the source, who added that there needed to be "many more talks", the Sunday Times reports.