Wednesday newspaper round-up: Cove, Vodafone, HSBC

29th Feb 2012 06:57

HSBC has admitted for the first time it may face criminal charges that could see it hit with "significant" penalties stemming from a US investigation into alleged money-laundering by Britain's biggest bank. The bank is being investigated over possible violations of the US Bank Secrecy Act. HSBC also said that it is co-operating with another investigation by the Department of Justice and the Office of Foreign Asset Control (OFAC) "regarding historical transactions involving Iranian parties and other parties subject to OFAC sanctions,"according to The Telegraph.Vodafone was in head-on conflict with the European Commission yesterday after warning that mobile companies would slash investment in new networks if regulators did not ease up on prices. The threat prompted the Commission's vice-president to declare: "I call your bluff ? I am on the side of the customer." Vittorio Colao, the Vodafone chief executive, used his keynote speech at the Mobile World Congress in Barcelona to attack regulators who have forced down international roaming rates and wholesale interconnection rates at a time when telecoms companies were struggling. "We should stop having this continuous intervention on prices and let the industry reinvest the money," he said, The Times reports. The Indian Government has joined the pursuit of the Mozambique-focused gas explorer Cove Energy. The state-owned energy groups ONGC and GAIL have formed a consortium to prepare a bid for the AIM-listed Cove. Shell opened the bidding last Wednesday, but was trumped by PTTEP, the Thai state-controlled group, two days later. The Indian move underlines the global pull of Cove since East Africa became the hottest new territory for oil majors and energy-hungry developing countries, after a string of huge gas discoveries. Cove's biggest asset is an 8.5% stake in the Rovuma gas field, off the coast of Mozambique, which contains more than three times the North Sea's remaining gas reserves, writes The Times.Synchronica closed ranks around its chief executive who bought shares only three weeks after the company had received an undisclosed bid approach, insisting that the purchase was "permissible". However, the mobile messaging company conceded that its description of the contact from its rival Myriad as a "vague approach" was inappropriate. In response to a story in The Times last week, Synchronica's board met to discuss Angus Dent's ill-timed share purchase, which came amid a bitter bid battle with its Swiss-listed rival. Mr Dent had told The Times that the company had received a "vague" approach early in November, which it had rebuffed. Later that month, the chief executive, with the blessing of his chairman David Mason and the company's financial adviser Northland Capital spent £49,000 on 800,000 shares.Whisky distiller Whyte & Mackay may be put up for sale by Indian billionaire Vijay Mallya to help clear his debts. Mallya's United Spirits told the Bombay stock exchange that the sale of its 49% stake in the Glasgow-based firm was one of several options being considered by the company. United Breweries Group, Mallya's holding company, bought Whyte & Mackay in 2007 for £595m. The group is looking to pay down debts of about £2.5bn, but its board has not yet met to consider the sale of a minority stake in the Scotch producer. As well as its eponymous blend, Whyte & Mackay makes single malts, including Dalmore, Fettercairn and Jura. The company also has a malt distillery at Tamnavulin and a large grain plant at Invergordon, The Scotsman says. Five million Britons could be offered the chance to buy their Christmas stamps at last year's prices while the rest of the country faces a steep increase in postal costs. Royal Mail will soon be allowed to raise stamp prices sharply in an effort to end years of losses in its letters business. The 36p second-class stamp could go up to 55p and the 46p first-class stamp up to 70p. MPs have been pressing Royal Mail for assurances that it would not raise prices to the disadvantage of those least able to afford them and yesterday Moya Green, the chief executive, told a select committee that she intended to allow the "most vulnerable members of society" to buy Christmas stamps at 2011 prices, The Times reports.AB