What the other papers say this morning - 10 June 2014


Chico’s explores private equity sale
Chico’s, the US womenswear chain, is exploring a sale to private equity and has discussed a deal with potential suitors that could lead to one of the largest take-private transactions so far this year. The final asking price could not be ascertained but one industry source said Chico’s would likely command a premium of about 30 per cent to its $2.36bn market capitalisation.

Morgan Stanley sells TransMontaigne
Morgan Stanley has further pruned its commodities trading division with the sale of petroleum distributor TransMontaigne to a fast-growing energy partnership. The sale to NGL Energy Partners, based in Tulsa, Oklahoma, effectively ends the bank’s ownership of physical oil infrastructure. Morgan Stanley has separately reached an agreement to sell its global oil merchant trading business to Rosneft of Russia, a deal that includes the bank’s minority interest in seaborne tanker operator Heidmar Holdings.

South Africa mining strike talks ends
Government-brokered talks to end the five-month platinum strike collapsed on Monday with the parties deadlocked. Anglo American Platinum, Impala and Lonmin – the world’s top three producers of the metal – said they would “now review further options” as the longest and costliest industrial action in the mining sector’s history shows no sign of ending.


Bills high after gas price drops
Wholesale energy prices have fallen to their lowest for almost four years, prompting demands that suppliers cut households’ record bills. After one of the mildest winters on record, Britain’s gas storage tanks are almost full when demand has slumped. The price of gas, which represents half a typical household’s annual bill of £1,237, has more than halved since the beginning of the year, falling 13 per cent in the past week alone. Energy firms have so far not cut bills despite the slide in prices. Consumer groups said the inaction was even more galling because when companies raised tariffs at the end of last year they partly blamed a rise in the wholesale cost of energy.

The Daily Telegraph

Diageo swings jobs axe to cut costs
Drinks giant Diageo, which has been hit by volatile trading in emerging markets, is looking to save £200m a year by June 2017. The firm has cut around 200 head office and regional jobs as its new chief executive, Ivan Menezes, cracks down on costs.

Last resort measures to keep lights on
Britain may be forced to use “last resort” measures to avert blackouts in coming winters energy secretary Ed Davey will say. Factories will be paid to switch off at times of peak demand to keep households’ lights on, if power plants are unable to provide enough energy.


Walmart.com chief to step down
Joel Anderson, chief executive of Walmart.com in the US is leaving the world’s largest retailer later this month for a job at a new company, according to a memo sent to Wal-Mart employees. Fernando Madeira, who is currently president and CEO of Latin America at Walmart eCommerce will replace Mr. Anderson.

Netflix investors reject boss split plan
Netflix’s shareholders voted against a resolution to split up the company’s chief executive and chairman positions, a move some investors have pushed to improve corporate governance.