Sunday newspaper round-up: Osborne, Ocado, M&S

12th May 2013 19:16

Energy giant Centrica is eyeing US gas assets jointly with Qatar as it gears up expansion across the Atlantic. The British Gas owner, which is likely to face questions on its growth plans at its Annual General Meeting in London on Monday, wants to build on last month's 650m pound joint deal for Canadian oil and gas assets. It hopes to take advantage of the glut in US gas caused by the shale boom to buy up assets at low prices, helping secure supplies for its growing US customer base, The Sunday Telegraph says. Ministers are preparing to rescue Britain's coal industry by dumping into a quango the heavy financial liabilities that threaten to crush it. The part-nationalisation may prevent the collapse of UK Coal, the quoted miner created from the rump of British Coal. It has suffered a cash crunch since a fire closed its Daw Mill deep mine in March, putting 650 people out of work and posing a question mark over the pensions of about 10,000 former staff. A bailout is being discussed by Whitehall departments, with talks led by the Shareholder Executive, the specialist team of corporate financiers inside the Department for Business, Innovation & Skills, The Sunday Times writes. George Osborne is likely to get a boost this week when Sir Mervyn King upgrades Britain's growth prospects for the first time in more than a year. King will deliver his last quarterly inflation report as governor of the Bank of England on Wednesday and is expected to signal the economy has turned a corner. Inflation is also likely to be lower than forecast, helping hard-pressed households. The forecasts follow a run of stronger data, which has taken pressure off the Chancellor, The Sunday Times says. Jm Ratcliffe, the billionaire chemicals tycoon, is planning to cash in on America's shale gas boom after orchestrating a $5.2bn refinancing of his Ineos empire. Ratcliffe is working on a multibillion-pound plan to import American shale gas to a plant in Norway, which would allow Ineos to restore competitiveness to its European operations. He is in tentative talks with the coalition government about support to convert its giant chemicals plant in Grangemouth to run on American gas, The Sunday Times reports. Europe's largest cinema operator, Odeon & UCI, has hired advisers to prepare it for a possible £1bn float or sale. The multiplex chain, owned by Terra Firma, the investment vehicle founded by Guy Hands, has appointed JP Morgan and Goldman Sachs, the giant Wall Street banks. The duo were appointed in the past few days but a deal is unlikely to materialise for several months. It is thought a float is now Hands' preferred method for realising his investment, according to The Sunday Times. The head of Waitrose has revealed he will reject a deal between Ocado and Morrisons and that the John Lewis business is now ramping up its own online service in direct competition to the digital retailer. "I would never knowingly sign a contract with Ocado that agreed to them working with another retail competitor," Mr Price, the managing director of Waitrose, told The Sunday Telegraph. "We have moved to defcon one [on online expansion] because we don't know where this is going to end up and we are now working on adding considerable extra capacity to Waitrose.com," he added.Consumer spending bounced back last month, giving a fresh boost to hopes that the economy may finally be starting to grow, according to exclusive research for The Financial Mail on Sunday. Spending on credit and debit cards jumped by 3.6% in April year on year, outstripping inflation and indicating a sharp upturn in consumer confidence, according to Barclaycard. The revelation, which follows an upbeat estimate of growth by the National Institute of Economic and Social Research, will be welcome news for Chancellor George Osborne, who is facing widespread criticism over his performance.WH Smith Chief Executive Kate Swann has met former Marks & Spencer boss Roger Holmes, fuelling suggestions she is considering a move to M&S. The meeting has been seen as a sign she is sizing up problems faced by M&S. Swann is understood to be close to agreeing her next job after she steps down at the end of June and speculation is rife. Holmes, who runs private equity firm Change Capital Partners, was chief executive at M&S until 2004, The Financial Mail on Sunday reports.The huge American infrastructure groups looking to run the Ministry of Defence's £160bn programme of buying anti-tank missiles and attack helicopters are wooing British groups to join their teams. Likely US bidders such as Bechtel, URS, Fluor, and CH2M Hill are trying to convince Serco, Capita, Atkins, and PA Consulting to form consortia. None of the British firms are likely to have the capabilities to bid "in isolation", according to an industry source, but do possess large UK workforces to help support a US-led bid, according to The Independent on Sunday.The Royal Mail could fall into foreign hands if trade unions continue to fight its flotation on the London Stock Exchange, the business minister,Michael Fallon, has warned. Fallon said the government would sell Royal Mail to sovereign wealth funds or other foreign buyers if postal workers' campaign against a flotation in London makes an initial public offering (IPO) on the stock market difficult, writes The Observer. AB