Thursday newspaper round-up: British Airways, BSkyB, Lloyds

4th Nov 2010 06:05

A Court of Appeal decision to reject a complaint by cabin crew union Unite has strengthened British Airways' negotiating hand with its more militant flight attendants. Three appeal court judges on Wednesday ruled that the airline had not broken the contracts of individual staff when it cut the number of cabin crew on flights from 15 to 14 as part of a drive to save £140m a year, the Telegraph says.The cabinet has split on party lines in its approach to News Corp's proposed bid for British Sky Broadcasting, amid growing expectations that Vince Cable, business secretary, will refer the matter to Ofcom. Mr Cable and other Liberal Democrats believe the matter should be subject to a public interest test, while Tory ministers are more relaxed about Rupert Murdoch's move, formally notified to the EU competition authorities on Wednesday, the Financial Times reports.The new head of Lloyds Banking Group ran into an immediate challenge over customer service last night, with shareholders expressing concern that he might make it the most hated bank in Britain. Some shareholders applauded the choice of Mr Horta-Osório and Lloyds shares closed up 2.7 per cent at 69.1p. However, there was also considerable shareholder concern that his seemingly patchy approach to customer service and complaints could damage Lloyds, writes the Times.Horta-Osório will have his bonus linked to small businesses lending targets, after last-minute demands made by George Osborne, according to the Telegraph. The Portuguese banker was told at a meeting with George Osborne last week that part of his £8.3m potential pay package will depend on him boosting business lending, the paper says.General Motors has announced plans to raise $13bn (£8bn) through a long-awaited public offering as it moves closer to a break from government ownership. The car maker, which is currently 61% owned by the US Treasury department will re-enter the New York Stock Exchange just over 17 months after it filed for bankruptcy protection, the Telegraph reports.The DIY chain Focus has lined up an accountancy firm to run a review of the debt-laden home improvement retailer. Lloyds Banking Group is poised to appoint Ernst & Young to conduct an independent business review of Focus, which has 180 stores and debts of £230m. Over the weekend reports emerged that the retailer's owner, Cerberus, had hired the investment bank Lazard to look at options to revive its fortunes, says the Independent.One of Hollywood's most iconic film studios has filed for bankruptcy protection after struggling for years to overcome a crippling debt. Metro-Goldwyn-Mayer Studios, which controls the blockbuster James Bond franchise, could now merge with Spyglass Entertainment as part of reorganisation proposals, says the Daily Mail.