Sunday newspaper round-up: Dubai, Yell, Banks

29th Nov 2009 12:08

Abu Dhabi is this weekend putting together a rescue package for Dubai, its debt-laden Gulf neighbour, in an attempt to restore calm in panicked international markets, according to the Sunday Times.The FT adds that Dubai's government is preparing a campaign to persuade the holders of a bond due for repayment next month to agree to a delay even if that sparks claims that the emirate has defaulted on the debts of a government-backed company, bankers said on Sunday.The Bank of England has been secretly mediating on major financial restructurings to ensure that they are approved by creditors, in a return to a 1990s policy known as the "London approach". Most significantly, the Bank intervened in the struggle that Yell Group, the Yellow Pages publisher, faced when it pushed through amendments to the terms of its £4bn debt burden at the turn of November. The Bank's chief cashier, Andrew Bailey, made telephone calls that resulted in what a market source described as "gentle conversations" with creditors who were considering voting against the amendments, says the Independent on Sunday.Lord Myners, the City minister, has launched an investigation into the giant profits racked up by investment banks, after claiming the scale of the windfalls "defies rational analysis". A handful of banks, such as Goldman Sachs and Barclays Capital, are expected to post record profits this year, partly due to the continuing chaos in the financial world, writes the the Sunday Times.The billionaire currency trader Joe Lewis has blocked the appointment of Archie Norman as chairman of Mitchells & Butlers, the £1 billion pub group. Norman, who was this month appointed chairman of ITV, the broadcaster, had been in talks about becoming non-executive chairman of M&B, which owns 2,000 pubs including the Harvester, All Bar One and O'Neills chains, reports the Sunday Times.The Bank of England feared that it might need up to £150bn of emergency funds - more than double the figure which it admitted to last week - to pump into the banking system to prevent a run on the banks in October last year, according to the Independent on Sunday.Sir David Walker, who is leading the inquiry into the corporate governance of banks, has admitted that he stopped short of naming banking executives who earned more than £1m because he was fearful of a talent drain from the UK, says the Sunday Telegraph.Travel giant TUI Travel, owner of Thomson, and Thomas Cook, are expected to post strong numbers this week despite the downturn and to report a last-minute dash for sun and snow, writes the Independent on Sunday.Alistair Darling is set to present a "neutral" pre-budget report on December 9, without significant new tax rises or measures to curb public spending. The chancellor will emphasise the need to nurture a recovery that he will say remains fragile and that it is too early for a tightening of fiscal policy, reports the Sunday Times.Dubai International Capital (DIC), the private-equity arm of the beleaguered state's sovereign wealth fund, is set to end its interest in London Eye and Legoland owner Merlin Entertainments, according to the Independent on Sunday.Flybe, the regional airline, is preparing for a stock market flotation that will bring a windfall for its staff and shareholders. The Exeter-based company, which has twice shelved float plans, is expected to be valued at about £300m, says the Sunday Times.Big name banks have lined up KPMG, the big four accountant, to salvage more than $30bn (£18bn) that they lent to Dubai World, the emirate's failing flagship global investor, writes the Independent on Sunday.Frank Timis, the former head of Regal Petroleum, which was handed the largest ever fine by the Alternative Investment Market last week, has raised up to at least $100m (£60.5m) to list his new company African Petroleum, reports the Sunday Telegraph.Five of the "big six" energy suppliers still overcharge customers on pre-pay meters despite new Ofgem rules, according to the National Housing Federation (NHF). According to the NHF, Centrica-owned British Gas, Scottish Power - which is owned by Spain's Iberdrola - German company E.ON, Scottish & Southern Energy and npower, owned by Germany's RWE, are all failing to meet the cap, says the Sunday Telegraph.Harrods, the upmarket London retailer owned by Mohamed al-Fayed, is believed to be looking to sell its pension fund liabilities in a buyout deal, according to the Independent on Sunday.Banco Espirito Santo (BES), the Portugese bank, is believed to be eyeing a stake in Execution Limited, the City stockbroker, writes the Independent on Sunday.PricewaterhouseCoopers (PwC), the big-four accountant, has been hired by Pearl Group, the insurance giant, to consider the sale of empty building management firm VPS Holdings, reports the Independent on Sunday.A group of oil companies is to cash in on rising fuel prices by floating on the London Stock Exchange next year in deals that will value them at more than £1.2 billion. At least five oil and gas groups are in early stages of preparations for stock market listings. The wave of offerings will make millionaires of a handful of oil entrepreneurs and generate much-needed returns for the private equity firms that have backed some of the companies, says the Sunday Times.Scotland's economy faces a torrid 12 month climb out of recession, lagging recovery across the rest of the country, the influential Ernst & Young Item club think tank has warned. In a damning assessment of Scotland's economic strength the group warns that the country's ailing financial sector will suffer a tumultuous 2010 with as many as 3,000 jobs likely to be lost, writes the Independent on Sunday.British Airways has taken a big step towards using biofuels in its jets by starting trials in conjunction with Rolls-Royce. BA plans to conduct large-scale ground tests of a range of fuels made from plants next year, according to the Sunday Times.