WHAT THE OTHER PAPERS SAY THIS MORNING
THE SUNDAYS
The Sunday Telegraph
PRIVATE SECTOR WARNS ON PUBLIC SECTOR CUTS
Leading companies have warned they will not be able to pick up the slack from the wide-scale job losses expected in the public sector. The warning raises concerns over a key part of the Chancellor’s spending cuts, which are based on the assumption that private firms can absorb a large number of state workers.
JOB CUTS LOOM AT BAE SYSTEMS AFTER CONTRACT LOSS
BAE Systems, Britain’s biggest defence company, is set to cut hundreds of jobs in its UK vehicles business in the coming weeks. The future of Britain’s last tank-making facility is also in the balance and an announcement could be made as early as this week. The cuts come after BAE lost out on an armoured vehicle contract.
THE SUNDAY TIMES
REED ELSEVIER CHIEF SNUBS SUITORS FOR EXHIBITIONS ARM
Private equity groups are pressing Reed Elsevier to consider a sale of its exhibitions arm after the professional publisher rebuffed buyers’ interest in the division in the past few months. Talks with one group, thought to be TPG, valued Reed Exhibitions at close to £1.5bn. Reed, led by chief executive Erik Engstrom, made clear it was not for sale and a bid was never tabled.
SHAKE-UP FOR PRU BOARD
Prudential is planning a boardroom shake-up that could pave the way for the departure of chairman Harvey McGrath. Two non-executive directors have been hired to strengthen the board after mounting pressure from investors. The board has been under scrutiny since the failed $35.5bn (£24bn) takeover bid for AIA, the Asian arm of America’s AIG.
TODAY
FINANCIAL TIMES
SINGAPORE AIMS TO BE DERIVATIVES CLEARING HUB
Singapore is pushing to become an Asian hub for derivatives clearing and to poach business from Europe and the US as regulation reshapes markets. The Monetary Authority of Singapore is discussing ways of expanding the city-state’s clearing capacity.
PRIVATE EQUITY VALUATIONS DIVERGE
Blackstone and TPG are providing their investors with dramatically different valuations for one of their biggest common holdings, Freescale Semiconductor. Blackstone and TPG each contributed about $1bn in equity for the $16.6bn leveraged buy-out of Freescale, a semiconductor manufacturer, in December 2006.
The Daily Telegraph
MINERS STAY ON GUARD IN ROW OVER AUSTRALIAN “SUPER-TAX”
Dispute remains unresolved as new Australian prime minister tries to defuse issue while also declaring industry must pay fair share of tax. In the gold fields of Kalgoorlie the men from the mines are worried. Despite the new Australian prime minister, Julia Gillard, calling a temporary truce over the controversial Resource Super Profits Tax (RSPT), employees of the mining industry believe the fight is far from over.
CONSULTANTS TO WORK ON LADBROKES’ STRATEGY
The new chief executive of Ladbrokes has brought in consultants Alix Partners to assist with a review of the bookmaker’s entire operations, including the shape of the business and its strategy. Richard Glynn has hired the consultants.
THE TIMES
CARMAKER HOPES HIGH-TECH PREDATOR IMAGE WILL HELP ACCELERATE GROWTH
First American carmaker to go public since Ford in 1956, Tesla IPO is a bellwether for investor confidence in green technology. Tesla Motors will raise nearly $200m in one of the most eagerly awaited initial public offerings of the year because it is a “technology velociraptor”, according to its founder and chief executive.
TACO BELL TAKES A SECOND LOOK AT BRITAIN
Taco Bell is attempting to ride a new Mexican wave into the affections of British fast food fans. The chain, a feature of Main Street, America, is opening an outlet at Lakeside shopping centre in Essex, confident that people appear to be increasingly open to Mexican food both at home and when eating out.