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FTSE 100 5,371.04 +4.63 DOW 10,320.10 +50.63 NASDAQ 2,200.01 +23.17 /$ 1.54 unc / 1.20 -0.01 /$ 1.28 unc Certified Distribution05/07/2010 till 01/08/10 is 94,889

Tube strike

to go aheadon Monday

THOUSANDS of Londers will face dis-ruption to their travel plans thisMonday and Tuesday after talks toavoid a crippling set of 24-hour strikes

by London Underground (LU) workerscollapsed yesterday.

Over 10,000 LU workers are set tostrike on Monday at 5pm, affectingthe entire network and launching therush-hour into chaos.

London Underground will not dropplans to cut 800 staff working in tick-et offices and stations, while unionssay these cuts will jeopardise safetyon the Tube.

Maintenance and engineering staffwill walk off the job first and will befollowed by station and ticket officestaff, drivers, signallers and opera-tional managers. The industrial action

will last until 8:59pm on Tuesday. Transport unions RMT and the

Transport Salaried Staffs Association(TSSA) were locked in negotiations

with LU for more than four hours atconciliation service Acas yesterday.

Transport for London said it hopedto run some services because 60 percent of train drivers are members ofthe rival union ASLEF, which is notinvolved in the dispute.

Further strikes are planned forSunday 3 October; Tuesday 2November, and Sunday 28 November.

Separately, services on the Jubilee

and Northern Lines will face disrup-tion from 7pm on Sunday when 200Alstom-Metro train-maintenance staffare also scheduled to strike.

BY EMMA SADOWSKI

TRANSPORT

European finance commissioner Michel Barnier wants to drastically curb short selling Picture: REUTERS

EUROPEAN diplomats agreed lastnight to set EU-wide financial watch-dogs by the start of next year, formal-ising a historic power grab by Brusselsinstitutions over key swathes of theUK and London economies.

The trio of new regulators, to moni-tor banks, insurance companies andtrading on markets, will be comple-mented by a group attached to theEuropean Central Bank that will keep

watch for other economic risks like aproperty price bubble.

The controversial move champi-oned by EU commissioner MichelBarnier establishes agencies thatcan overrule a national regulator likethe Bank of England and will fuelfears that European leaders with littlelove of the City will throttle its abilityto compete globally.

The bodies will be able to intervenein the regulation of individual banksin London. But their resources as wellas freedom to sideline national agen-cies will be limited. These newauthorities will have the final word inmediating a dispute between nation-al authorities, said Karel Lannoo ofthe Center for European PolicyStudies, a Brussels think tank.

They will be in charge and this is a

historical change. Although lack ofmoney will hinder their work, some,for example in markets, could

become as powerful as the Securities

CITY TARGETED ASEU GRABS POWERSBY OLIVER SHAHREGULATION

www.cityam.comIssue 1,212 Friday 3 September 2010 FREE

CITY A.M.AWARDSANALYST AND

FUND MANAGERS

SHORTLISTED P7

FRIDAY DEBATE: HAS MALEGROOMING GONE TOO FAR?

THE RISE OF THE HE-VAGE P28

BUSINESS WITH PERSONALITY

and Exchange Commission.In a related move, European politi-

cians are preparing to take on hedgefunds by banning naked short sell-ing in shares and government debt,as well as imposing broader curbs attimes of crisis.

The Commission has drawn up

plans to follow Germanys lead by for- bidding traders from short sellingequities or credit default swaps onsovereign bonds without being able

to access the underlying security known as naked shorting.

In emergency periods, regulators would have the power to limit allshort selling and credit default swaptrading for up to three months.Market makers who provide liquidity

would be exempt.

Even in calm conditions, hedgefunds would have to regularly revealtheir short exposure to certain sharesand the sovereign debt of EU nations.

The EC will meet to approve theshort-selling plans on 15 September.Discussions will then begin with indi-

vidual countries, with the UK expect-ed to object. The AlternativeInvestment Management Association,

which represents hedge funds, wel-comed a unified European approach

but said: The crisis experience hasshown that imposing such bans doeslittle to calm market panic.

ALLISTER HEATH: P2; Q & A: P2

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A LITTLE-KNOWN private equity firmstunned Wall Street by taking overtroubled fast food chain Burger Kingin a $4bn (2.6bn) deal yesterday.

Analysts began talking about apotential wave of takeovers in therestaurant sector after 3G Capital, aNew York-based vehicle run by threeBrazilian billionaires, agreed a $24-per-share offer with the companysboard. The generosity of the 46 percent premium to Burger Kings undis-turbed share price surprised manymarket participants.

3G will take on the eatery opera-tors 750m debt pile and keep chiefexecutive John Chidsey as co-chair-man alongside 3G partner AlexBehring. Headhunters will be search-ing for a fresh candidate to succeedChidsey as chief executive.

3G said it had raised financingfrom JPMorgan Chase and BarclaysCapital. The transaction is expectedto close in the fourth quarter.

Burger King, which returned topublic ownership in 2006 after a spellunder the control of private equitygroups TPG, Goldman Sachs and Bain

Capital, has struggled duringAmericas lengthy downturn.

Its reliance on working class, malecustomers meant soaring joblessnesshit the franchise hard. Last weekBurger King said worldwide saleswere down 2.3 per cent this year, withsales in the US down 3.9 per cent.

In contrast, bitter rival McDonaldsgrew its global sales 4.8 per cent inthe second quarter, with US sales up3.7 per cent. Burger King has been try-ing to fight back with thicker, steak-like premium products.

Jake Bartlett, an analyst atSusquehanna Financial Group, said:This buyer has a more optimisticview of the future than most of theStreet does on the stock. Everyone was just shocked to see the bid atnine times 2010 earnings.

Tom Forte, an analyst at TelseyAdvisory Group, predicted a wave ofmergers & acquisitions for the casu-al dining space. Forte named Mexicangrill Brinker International and ribsrestaurant Ruby Tuesday as targets.

We wont have any companies leftto cover pretty soon, he said. Therestaurant sector is an interestingspace for private equity looking forcompanies to generate free cashflow.

Brazilian trio

takes BurgerKing for $4bn

HSBC said yesterday that Britainslargest banks would leave the UKshould the government appointedCommission on Banking decide tobreak up big groups.

The firms investment bankinghead, Stuart Gulliver, expressed con-cerns that the commission mightmove to divide universal banks by

separating their high street bankingfrom their investment banking opera-tions.

Gulliver said: [That] has signifi-cant implications clearly for where we may choose to headquarter ourinstitution.

It is already widely believed thatHSBC could turn eastward to head-quarter in Hong Kong but the banksaid last night that it does not haveany current plans to do so.

HSBC warns overUK banking exodus

BYOLIVER SHAH

CONSUMER

BY EMMA SADOWSKIBANKING

News 3CITYA.M. 3 SEPTEMBER 2010

4.8 per cent rise inglobal sales in threemonths to 30 June

$1.2bn profit forthree months to 30 June

0.7per cent fall in

global sales in threemonths to 30 June

$49m profit for threemonths to 30 June

2006 float price:$17Take-private price:$24

Soaring job-lessness hashit BurgerKing hard

Picture:REUTERS

DELL said yesterday it wont matchHPs offer to pay $33 per share for3Par, or about $2.07bn (1.3bn) yester-day. Dells decision came barely anhour after 3Par announced it hadreceived Dells revised offer of $32 pershare and then the even stronger bidfrom HP.

3Par said Dells revised offer con-tained new terms that it found unac-ceptable, including a multiyearreseller agreement with Dell that

would remain in effect even if 3Parwere to be bought by another compa-

ny. The board of 3Par approved HPsoffer, which is 83 per cent above Dellsfirst offer and more than three timeswhat 3Par stock was trading at then.The deal is expected to close by theend of the year.

We took a measured approachthroughout the process and havedecided to end these discussions,"said Dave Johnson, Dells senior vicepresident for corporate strategy.

Shares of 3Par increased 80 cents,or 2.5 per cent, to close yesterday at$32.88. Before Dell conceded, 3Parshares were trading as high as $33.84

as investors expected Dell to match orbeat HPs $33-per-share offer.

Dell hands 3Par to HP aswalks out of bidding warBYHARRY BANKS

TECHNOLOGY

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US Federal Reserve chairman BenBernanke yesterday said he was partlyto blame for leaving the wrongimpression that the central bankcould have saved Lehman Brothersfrom failure in 2008.

Bernanke, testifying before a con-gressional commission examiningthe causes of the worst financial crisisin 80 years, said he thought it verylikely the investment bank was insol-

vent and lacked sufficient collateral

to borrow enough from the centralbank to avert collapse.

But he said he kept that view tohimself in congressional testimonygiven just days after LehmansSeptember 2008 bankruptcy becausehe was worried that such commentsmight have spooked already panickyfinancial markets.

I regret not being more straight-forward there because clearly it hassupported the mistaken impressionthat in fact we could have done some-

thing we could not have done, hesaid.

The Financial Crisis InquiryCommission wrapped up a two-daysession yesterday focusing on too bigto fail firms whose disorderly col-lapse could destabilise the globaleconomy.

On Wednesday, commission chair-man Phil Angelides questioned

whether politics had played a role inthe decision not to bail out LehmanBrothers, citing emails showing USofficials fretting over how the mediamight portray a taxpayer-funded res-

cue of a Wall Street titan. Lehmans bankruptcy triggered widespreadpanic, hastening the worst globalrecession since World War Two.

It was with great reluctance andsadness I conceded that there was noother option but to let Lehman fail,Bernanke said. The only way wecould have saved Lehman would have

been by breaking the law and Im notsure Im willing to accept those conse-quences for the Federal Reserve andfor our system of laws, he added.

Bernanke: Imessed upover Lehman PENDINGsales of previously owned UShomes rebounded unexpectedly inJuly and new claims for jobless bene-fits fell last week, helping dampen

fears the economy could face a doubledip recession.

The data yesterday, including sturdysales from US retailers last month, fol-lowed a report on Wednesday showinga surprising gain in manufacturingactivity and suggested the economyretained some underlying strength.

Investors appeared to agree earlierfears of a double-dip recession mighthave been overdone as they sold long-dated US government bonds and

bought some stocks. The National Association o

Realtors Pending Home Sales Index,based on contracts signed, rose 5.2 percent in July from a month earlier.

Analysts had expected the indexwhich leads actual sales by a month ortwo, to fall one per cent.

Home sales have dropped sharplysince a popular tax credit for home

buyers ended in April and the surprisegain in pending sales raised hopes thesector could soon stabilise.

A separate report from the LaborDepartment showed initial claims forstate unemployment benefits droppedfor a second straight week last week,slipping 6,000 to 472,000.

New data quellsfears over freshUS recession

Ben Bernanke said he could have been more straightforward over Lehman Picture: GETTY

BYHARRY BANKS

US ECONOMY

US ECONOMY

Economic News4 CITYA.M. 3 SEPTEMBER 2010

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Economic News 5CITYA.M. 3 SEPTEMBER 2010

HOUSE prices fell much faster thanexpected last month and construc-tion activity slowed, industry surveysshowed yesterday, reinforcing con-cerns that economic growth will falloff sharply.

The strongest quarterly construc-tion growth for decades pushedBritish economic growth to a nine-

year high of 1.2 per cent in the sec-ond quarter, but the Markit/CIPSpurchasing managers index (PMI)

suggests this is slowing rapidly -- driv-en partly by weaker house prices.

House prices dropped a bigger-than-expected 0.9 per cent in Augustafter a 0.5 per cent decline in July,the sharpest fall since February,according to the monthly surveyfrom mortgage lender Nationwide.

July and August marked the firsttwo consecutive monthly house pricefalls since the decline in Britishhouse prices levelled off in February2009, and the annual rate of house

price growth slowed to 3.9 per centfrom 6.6 per cent, well below fore-cast.

As fears of a double dip in thehousing market take hold, builders

will likely feel less urgency to beginnew developments, said Nomura UKeconomist Philip Rush.

A fall in the rate of new homebuilding pushed the PMI down to asix-month low of 52.1 in August from54.1 in July.

This was a sharper slowdown thaneconomists had expected since the

boost to second quarter output from

projects that had been delayedbecause of icy winter weather fadedaway.

CIPS chief executive David Noblesaid: The most disturbing is themarked slowdown in the residentialsector as this is where much of therecent sector growth has come from.

The slight increase in public-sectoractivity disguises continuing uncer-tainty about the scale of spendingcuts which we have yet to experi-ence.

Surveys castshadow overhouse prices THE European Central Bank (ECB)extended its liquidity safety net forvulnerable Eurozone banks into nextyear, delaying its exit from crisis meas-

ures for now as it urged caution aboutthe economic recovery.

The ECB left rates at a record low ofone per cent for the 16th month in arow yesterday and said policyremained accommodative as theregion battles with an uneven recov-ery and concerns about bank vulnera-

bility.ECB staff raised economic growth

forecasts but President Jean-ClaudeTrichet said risks were to the down-side and the recovery would be moder-ate with uncertainty prevailing. Wehave to remain cautious and prudent.

We dont declare victory, he told hismonthly news conference, although

he said a double-dip recession was noton the cards.

The ECB extended its promise tolend banks unlimited one-week andone-month funds until at least 18

January, keeping liquidity flushthrough the tense end-of-year periodin a move which should keep marketrates low. It will also offer unlimitedfunds at three-month operations untilDecember although the cost of these

will not be fixed in advance, ratherindexed to the ECBs policy rate.

ECB extends itsbank liquiditylifeline into 2011

ECB President Jean-Claude Trichet is cautious about the Eurozone economy Picture: REUTERS

BYHARRY BANKS

UK ECONOMY

EUROPE ECONOMY

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ROYAL Bank of Scotland (RBS) yester-day blamed the EU for swingeing jobcuts that will clear out 3,500 supportstaff.

The bank released a statementpointing to EU rules for the cuts. Astatement read: We continue tomake efficiencies across our businessand adjust our plans in line with thedivestments we have been requiredto make by the EU.

The fresh wave of efficiency savingsfollow 9,000 job losses last year. RBShad warned more cuts were on theway but the fresh figure is around athird higher than expected, largelydue to the forced sale of 318 branchesto Santander.

City A.M. understands the losses willaffect support staff, with IT staff bear-ing the brunt. No front-facing staffwill lose their jobs.

A small number of jobs roughly500 will be outsourced abroad.

The banks biggest union Unite yes-terday branded the job cuts a horrorstory.

Rob MacGregor, Unite national offi-cer said: It will be a specially bitterpill for staff to swallow as RBS has

decided to move some of the jobsabroad to the Far East, India andAmerica.

Just three weeks ago staff were boosted to hear of the 1.1bn half year profit yet today thousands ofthem are told that they have nofuture at the bank.

Unite is appalled that this 84 percent tax payer supported institutionhas since 2009 under the banner of astrategic review cut 21,500 staff.

The scale of the cuts announcedtoday beggars belief and staff acrossthe country today will be left reelingfrom this news.

The bank responded that job cutsare the most difficult part of ourwork and said it would continue tosupport those affected.

HIGH STREET upstart Metro Banksaid it would employ more than 500staff by the end of next year as itopened its second branch in the UK.

Chief executive Craig Donaldsontold City A.M. the retail deposit taker, which aims to attract disillusionedcustomers from other major lenders, would have 200 employees by

Christmas. It aims to more than dou-ble the number in 2011.

Weve been overwhelmed by cus-tomer interest, and were recruitingstaff aggressively to meet the numberof savers joining, Donaldson said.Metro met its one-year target foraccount openings within a month of

launching, he added.Metro opened an outlet in Earls

Court today to complement its exist-ing site in Holborn. The institutionplans to unveil branches in FulhamBroadway and Borehamwood thisyear before opening a further eight in2011. Within a decade it could have200 branches on high streets acrossthe UK. Although Metro admits itsinterest rates will not top newspapersbest buy tables, it sells itself on

seven-days-a-week availability and alate 8pm closing time.

Metro Bank vows to employ 500 staffby next year as it opens second branch

WM MORRISON, Britains fourthlargest supermarket chain, is expect-ed to announce next week that it willstart selling groceries online.

According to the Financial Times,the retailers newly appointed chiefexecutive Dalton Philips is set tomake his business plan for Morrisonsfuture, including offering groceriesonline to its customers, public next

week.In his first appearance in the new

role since his appointment, it is alsoanticipated that Philips will detail thecompanys opportunities to developnon-food areas and a broader base ofstore formats.

Philips joined WM Morrison inMarch after he was poached fromCanadas Loblaws chain two monthsearlier. He has already made somechanges, recruiting Richard Hodgsonfrom Waitrose as commercial director.

Hodgson will replace Morrisons

Martyn Jones, a trading director, whois to move into corporate services.

WM Morrison to startselling groceries online

RETAIL

RAB CAPITAL has hired CharlesKirwan-Taylor as its new chief execu-tive, replacing Stephen Couttie.

Kirwan-Taylor was previously chiefinvestment officer at the firm, havingjoined in 2008 during the last man-agement shake-up. He becomes thehedge funds third boss in less thantwo years.

Couttie has left to pursue interestsoutside the group, but will continueto assist RAB on an advisory basis, thecompany said in a statement.

Kirwan-Taylor quit his job as chair-man of UK corporate broking atCredit Suisse in 2006 to set upGreyshrike Capital, a hedge fundfocused on European equities.

While at Credit Suisse he advisedon several high profile transactions,including the privatisation of Telecom Italia, the flotation o Alstom and the initial publiofferings of easyJet and Qinetiq.

RAB, which focuses on energy andcommodities funds and is also well-known for its failed bet on NorthernRock, reported a loss before tax andexceptional items of 6.9m in 2009.

Executive chairman Michael Alen-Buckley said: His experience infinancial markets and as CIO andhead of Risk at RAB mean that he isideally placed to lead the group in itsnext phase of development as wefocus on delivering out-performingrisk-adjusted returns for investors.

RAB Capitalhires a new

chief execHEDGE FUNDS

GOLDMAN Sachs is the most soughtafter financial adviser globally on

merger and acquisitions, after land-ing a role on three mammothtakeover deals last month.

The Wall Street giant pushed itsway to the top of Thomson ReutersM&A adviser rankings after taking apole position on the highest valueddeals since January.

In that period, Goldmans advisedon the lions share of mega-valuedeals after snapping up roles on 234transactions worth $373.6bn

(242.5bn).Goldman, along with rivals JP

Morgan, advised on BHP Billitons$43bn takeover of Canadian ownedPotashCorp, which was last months

largest deal.JP Morgan also pushed up the rank-ings into second place as the bankadvised on 202 deals valued at$336.1bn during the first eightmonths of the year.

Both firms scored top roles onPower Internationals $25bn merger with GDF Suez Energy and Sanofi-Aventis $18bn bid for Genzyme, edg-ing the two banks past rival MorganStanley for the top global spot.

Despite advising on 23 more dealsthan Goldmans, Morgan Stanley fellfrom the top spot for the first time inseven months to third place afteradvising on 257 transactions worth

$316.8bn.Meanwhile, August marked arecord month for high value dealsafter worldwide M&A activity totalled$267.2bn, the biggest since 1999 when $274.9bn in deals were com-pleted.

During the same period last year,roughly $127bn in deals were pennedas the financial crisis took its toll onconfidence amongst the worlds topcompanies.

Goldman leads M&A tablesBYEMMASADOWSKI

M&A

RBS blames

EU for 3,500job lossesBY STEVE DINNEEN

BANKING

BYOLIVER SHAH

BANKING

News6 CITYA.M. 3 SEPTEMBER 2010

ANALYSIS lWorldwide announced M&A by deal size ($bln)$5b-Hi $500m-$1b

$1b-$5b $.0 01 -$50 0m

50

29.7 30.9

13.2

74.6 7 7.9

36.911.637.6 35.6 39.4 46.4 48.4 39.7 54.3 55.8 56.8 65.2 41.4 50.2 59.2 51.4 50.2 64.1 60.4 48.8

22.1

56.2

140.5

29.6

101.1

20.1

23.1

69.0

53.3

25.8

87.6

27.3

22.2

49.6

38.4

30.5

70.1

35.0

13.5

43.7

59.2

7.936.8

75.9

25

58.8

65.7

23.6

55.1

96.6

20.9

48.7

25.7

23.1

52.5

47.5

11.9

37.9

37.9

21.6

34.2

64.7

20.3

50.6

152.7

9.937.2

36.4

9.339.1

22.5

32.7

9.2

47.6

76

100

150

200

250

300

Jan 09 Mar 09 May 09 Jul 09 Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul 10

ANALYSIS l RBS

40

44

48

52

4 Aug 24 Aug15 Jul25 Jun7 Jun

p 46.152 Sep

Metro Banks CraigDonaldson said thelender would open200 branches within

the next decade

TOP FINANCIAL ADVISERS | GLOBAL

Rank Financial Adviser YoY Rk Chg. Value ($ mln) Mkt. Shr. # of deals

1 Goldman Sachs & Co 1 373,623.6 23.9 234

2 JP Morgan 2 336,188.5 21.5 202

3 Morgan Stanley t2 316,832.9 20.3 257

4 Bank of America ML 2 243,143.0 15.5 154

5 Credit Suisse = 239,877.5 15.3 196

GELDOF SEEKS $1BN FOR AFRICAN FUND

SIR Bob Geldof has launched a private equity fund to raise $1bn for investment inAfrica making it one of the largest in the market for African deals. Geldof has teamedup with Mark Florman, a former executive at UK buyout firm Doughty Hanson, to runthe fund. Called 8 Miles, the fund plans to make about 20 investments of between $15mand $80m in agribusinesses, financial services and telecommunications.

Picture: REUTERS

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ANALYSTS are the heart andsoul of the City, and the five on

our list are legends in theirown sectors. Whether it is look-ing at the future of the energy indus-

try, pontificating on the biggestM&As, or just looking at the move-

ments of the markets in general, when the members of our shortlisttalk, people listen.

Dont miss the City event of the year get online now and book your table for

the City A.M. Awards on Thursday 28October 2010 at Grange St Pauls Hotel,London EC4. www.CityAMAwards.com

One of the most respected voicesin the energy sector, Dobbing is amember of the oil and gas equityresearch team at JP MorganCazenove, where his analysis is amust-read for anybody with eventhe most passing interest in themovements in this fast-moving

industry. He has an admirablyglobal pedigree, too. Before mov-ing to London, he worked in oilservices stocks in Oslo, with rolesat Alfred Berg, ABN Amro andDanske Securities, all in Oslo.

ANDREWDOBBING,JP MORGANCAZENOVE

Head of European thematicresearch at UBS in London, Olneyhas made several good calls thisyear. She was one of the first ana-lysts to flag the investment casefor Germany, in February, andalso made the call that investorsshould invest in dividends, a tactic

that has proved profitable. Shepreviously worked at MerrillLynch and Dresdner KleinwortWasserstein, and before that wasa fund manager and charteredaccountant.

KARENOLNEY, UBS A highly-respected analyst with

his finger on the financial pulse ofthe City, Ward has worked as aneconomist in financial marketsfor over 20 years, working at

SIMON

WARD,HENDERSON

WorldInvest, Lombard Street

Research and Bank Julius Baer,before joining Henderson follow-ing its acquisition of New Star inApril 2009. His monetary per-spective has led him into criticismof the Bank of England and thegovernment, and recently he hasbeen at the forefront of thosecalling for an interest-rate hike,something which has chimedwith many in the Square Mile.

A media analyst for a quarter ofa century, Tilbian is one of thebest-known in the industry.Admirers applaud the way thatshe can see through corporatewool-pulling at 40 paces. Tilbianjoined the sparky Numis in 2001having previously worked at City

firms SG Warburg and PanmureGordon. She has long been a reg-ular in Media Weeks Power 50list, and was recently appointed abusiness ambassador by the gov-ernment.

LORNATILBIAN,NUMIS

A hugely respected figure in theCity, and a man who has left manyan awards dinner with a gong inhis hand. Although he is based inNew York, he is well-known as one

ANDREWWOOD,SANFORDBERNSTEIN

of the leading European equitiesanalysts. He has been at SanfordBernstein since 2001, having pre-viously worked for a decade in thefood and drink sector, first atPepsiCo and then at Nabisco.

Unsurprisingly, then, he is anexpert on that sector, and his bigcall this year was Cadbury-Kraft,arguing all the way along thatKraft would succeed in itstakeover.

R

ECESSIONS are when reputa-tions are made, they say, andthat has been true in the worldof fund managers. While some

have battened down the hatches, the

ones on our list have seen opportuni-ty in crisis, and pushed ahead withflotations and expansions, or havejust taken the chance to expand. Allare stars in their own way.

Dont miss the City event of the year get online now and book your table forthe City A.M. Awards on Thursday 28October 2010 at Grange St Pauls Hotel,London EC4. www.CityAMAwards.com

The fund management giantmakes our list for two reasons.Firstly, it reacted to the crisis inwestern banks by launching aChina fund run by its star manag-er, Anthony Bolton, showing thatit is quick on its feet and takesAsia seriously. And secondly, it

spoke out about the coalition gov-ernments plans to raise CGT. In aworld where many City bigwigsare quite happy to keep theirheads down and do their moan-ing in private, that gets kudos.

FIDELITY

There were raised eyebrows inthe City when Jupiter pushedahead with its flotation earlierthis year, despite fellow fundmanager Gartmores problemspost its own IPO, but it hasproved a shrewd move. In thefirst half revenues climbed 39 per

cent, to 131.1m, and it has alsoseen an inflow of 814m moremoney, now managing 19.8bn.Shares are up 23 per cent fromtheir initial price. Sometimes for-tune favours the brave.

JUPITER

If longevity is a mark of quality,then there is no doubtingSchroders pedigree it has beenin the City since 1804. In thesehard times many people have

SCHRODERS decided to trust the name, andover the past year it has seen aninflux of money it now manages164bn, up 16bn year-on-year.Its popularity is not all aboutthose oak-panelled rooms and thelure of tradition, either; in the firsthalf of this year it beat almost allpredictions and made profits of188m. In a world of fresh,young fund managers, the wiseold heads can still perform.

The story for Neptune over thepast 18 months has been one ofincredible growth. At the start of2008 its boss Robin Geffendecided that it should double itsfunds under management in 18months. Astonishingly, helped bya re-branding, a publicity drive

and the launch of new productstargeting emerging markets, itsucceeded. At the time of writingit has increased its money man-aged from 2.5bn to 5.9bn. Andall in a downturn. Not bad going.

NEPTUNE

Employing 1,800 people in 24countries, FTSE 250-listedAberdeen is one of the biggestplayers in the fund managementindustry. Its assets were close to

ABERDEENASSETMANAGEMENT

an incredible 165bn at the endof June, 36.3bn of which wasadded in the past three quarters,and 11.2bn in the last quarter.Although it retains Scottish con-nections CEO Martin Gilbert isstill based in Aberdeen it is avery modern firm, and hasrecently received plaudits for itsAsia Pacific funds. It is renownedfor its single-minded, independ-ent approach.

Sponsored byOF THE YEAR | The Shortlist day 4ANALYST

Sponsored byOF THE YEAR |FUND MANAGER

MONDAYRETAIL BANK

&PROFESSIONAL SERVICES

Headline sponsor In association with

Category sponsors

Official venue partnerAwards reception sponsor

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BLANK GETSREADY FOR

TRIP BACKTO LLOYDSSIR Victor Blank, who quit Lloyds BankingGroup last year in the aftermath of itscontroversial merger with HBOS, isreturning in a few days time for a happyoccasion.

Blank is there as the guest of currentchairman Sir Wyn Bischoff who is hostingan unveiling ceremony of a portrait of hispredecessor in line with a Lloyds traditionthat dates back to 1868.

The first Lloyds chairman to have hisportrait adorning the offices in GreshamStreet is Timothy Kenrick, who chairedLloyds from 1865 to 1868.

The timing of the unveiling of theBlank portrait is noteworthy: for it is near-

ly two years to the day that Blank andchief executive Eric Daniels sealed the ill-fated merger with HBOS.

Some shareholders are still trying tostring Blank up for the deed, but there areothers who think the merger may comegood in the end.

Blanks portrait was painted by UKartist John Keane, whose portraits haveincluded the late Northern IrelandMinister Mo Mowlam and Channel 4 pre-senter Jon Snow. Keane was also the offi-cial British artist during the Gulf War.

out whether the public is yet engaged.It will be presented by Dermot

Murnaghan, which the blurb informs meis the man who got on his bike to checkout the economic cycle in 2009.

This time he will be presenting in loca-tions from Scotland to the South West ofEngland. Hopefully he wont be forced totravel all that way on his bicycle or theeconomy wont be the only thing in trou-ble.

SADDLE-SORE BORIS Which brings us nicely to what is

becoming our daily slot on Borisadventures on two wheels. Yesterdayhe took to the streets again, this time

with transport secretary PhiliHammond. The two posed with new

bikes before riding off into the sunset. With all this cycling its a wonder themayor has a chance to get anything done.Hopefully, hell take some time out ofthe saddle to attend City A.M.s inauguralawards ceremony, where he is nominat-ed for Personality of the Year.

STRICT DRESS CODEON the subject of unveilings, the venera-

ble Terry Smith will cut the ribbon on ana long-awaited statue of WWII hero Sir

Keith Park (see right).Smith, a face so recognisable in the City

he is surely in line for a portrait of his ownone day, has campaigned hard for the RAFcommander.

The unveiling of the memorial, in Waterloo Place, is very much a dressyaffair. The Capitalistwas slightly relieved todiscover serving vice-air marshalls werenot required to bring their swords. Fullceremonial dress, however, is mandatory.Even civilians are asked to wear a loungesuit, as a mark of respect.

Park is credited as being the master-mind behind the defeat of theLuftwaffe. As part of the campaign a

version of the statue has adorned theFourth Plinth in Trafalgar Square.

SKYS HARD CUTSSKY News came up with a novel wayto market its new special series onthe effects of the Budget cuts. TheCapitalist was surprised to receive asolid plastic invitation with a pair ofmetal scissors attached to it, bearing theSky News logo. See what theyve donethere? Scissors... Cuts... You already got it?Oh. The day of programmes will ask

where the cuts are already biting and find

Victor Blank will return to Lloyds for a portrait unveiling Pictures: Micha Theiner/City A.M.

LETS TALK

gftuk.com/cityam

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The Capitalist EDITED BYSTEVE DINNEENGOT A STORY? EMAILthecapitalist@cityam.com

Boris andtransportsecretary

PhilipHammondtake to thesaddle to pro-mote the newbike scheme.

9

The Mayor is back on his wheels

8/8/2019 Cityam 2010-09-03

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LONDONCITY TOCOPENHAGENFROM 65ONE WAY

8/8/2019 Cityam 2010-09-03

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POTASHCORPS best hope of escap-ing BHP Billitons $39bn (25bn) hos-tile takeover bid has received a blowfrom a local government minister.

Leo de Bever, chief executive of Alberta Investment Management(AIMCo) said yesterday that a varietyof parties have approached the fundmanager about entering into a rivaltakeover bid for PotashCorp, but thatparticipating in a deal at this point isunattractive to AIMCo.

Albertas public sector fund man-ager had been approached byChinese sovereign wealth funds andother parties about participating in atakeover offer to rival the hostilemove by BHP.

We cant right now make the eco-nomics work, said de Bever. If itwere to work it would take a consor-tium of pension funds, if you were todo it. But is that really appropriatefor those pension funds?, he said.

PotashCorp, based in the westernCanadian province of Saskatchewan,which neighbours Alberta, is current-ly facing a $130-a-share hostiletakeover bid from BHP, the worlds

largest miner led by boss MariusKloppers. Potash has rejected theoffer as grossly inadequate.

De Bever noted that the cost of cap-ital for Chinese sovereign wealthfunds was a lot lower than it was fora Canadian pension fund, or a fundmanager like AIMCo.

I dont want to speak for anyother pension fund, but I think weare all uncomfortable being put in aposition that isnt particularly eco-nomical, he said. De Bever saidChinese sovereign wealth funds areamong those that can afford to makesuch major deals because their costof capital is low. When asked whichparties had approached AIMCo, deBever said: Its been a variety of par-ties, including some of the sovereignfunds. He added: We work withpeople in other countries all thesame and we would be pleased towork with the Chinese entity if thatmade sense. Its not that we liked ordisliked the nationality of the capi-tal. However, de Bever did not com-pletely write off AIMCosinvolvement in the potash sectorsaga. Nothing is ever dead, but letsput it this way, its not the highest onmy hit parade right now, he said.

Canada fund

approachedon Potash bid

SAMSUNGSf irst tablet computer willgo on sale in two weeks, it said yester-day, joining the hunt to challengeApples iPad.

Global handset vendors and PCmakers including Nokia, LG andHewlett-Packard are moving into thenew category of devices, between tra-ditional PCs and smartphones, taking

a cue from Apple.Dell said last month it was launch-ing its new tablet device called theDell Streak to US customers.

Samsung declined to give the priceof Galaxy Tab, saying it will dependon operator packages in differentcountries.

The device is understood to besmaller than Apples 9.7 inch iPad.Analysts say price will be the key issueif Samsung is to compete.

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M&A

Leo de Bever, chiefexecutive ofAlberta InvestmentManagement, hasturned down arequest to partici-pate in a Chinese-backed consortiuminterested inlaunching a coun-terbid for PotashCorp

Picture:GETTYBY STEVE DINNEEN

TECHNOLOGY

News 11CITYA.M. 3 SEPTEMBER 2010

PRIVATE equity firm Clayton,Dubilier & Rice said yesterday it hadacquired a large minority interest inUnivar, a large chemical distributionbusiness, from the buyout firm CVCCapital Partners.

Clayton Dubilier and CVC eachnow own 42.5 per cent of Univar, which is valued at about $4.2bn(2.7bn) including debt.

Clayton Dubilier paid $760m for its

stake, according to people briefed onthe transaction.

CVC Capital Partners took theRotterdam-based chemicals groupprivate in a 1.5bn deal three yearsago and is retaining a 42.5 per centstake in the company.

The companys management, ledby its president and chief executive John Zillmer, will keep a stake ofabout five per cent. Goldman Sachsand Parcom Capital will own the rest.

Univar will postpone an initial pub-lic offering for which CVC hadannounced plans in June. Univar, which had $7.2bn of revenues in

2009, is the market leader in the USand Canada.

Clayton Dubilier snaps upstake in Univar from CVC

BYHARRY BANKS

PRIVATE EQUITY

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Recruiter Hays has seen a spike inUK finance workers emigrating to top

jobs in Japan, City A.M. has learned.The trend is part of a larger boom

in its Asian markets, which helpedoffset declining revenues in its UKoperations. The region, which nowrepresents 65 per cent of group oper-ating profit, reported a drop in netfees of 18 per cent and a 30 per centdecline in profit to 52m a farstronger performance than the groupas a whole.

A Hays spokesman told City A.M.the spike is partly down to Japanesefirms looking to native English-speak-ing workers who can help to quicklyinternationalise their workforce,

with British financiers high up thelist.

Hays, which places people in white-

collar jobs, said it made a pretax prof-it of 71.1m, compared with 151m

the previous year, but ahead of the67.5m consensus.

Turnover for the year was ten percent higher year-on-year at 2.7bn.Operating profit before exceptionalitems fell 53 per cent to 80.5m.

Chief executive Alistair Cox said:The results really are a story of twohalves. Our first half saw a very toughmarket, one of the toughest ever wit-nessed. We believe we turned the cor-ner in December.

Mike Allen, an analyst at PanmureGordon, said: Parts of the businesshave seen good recovery now, it lookslike weve seen the worst. The UK isstill a bit of a laggard, but the compa-ny is well positioned in Asia.

Hays benefitsafter a rise inAsian sectorBY STEVE DINNEEN

RECRUITMENT

PENSION liabilities for UK private sec-tor final salary schemes have hit astaggering 1.2 trillion, as marketconditions continue to deteriorate.

This represents a 20 per centincrease since the landmark 1 tril-lion figure was hit in August 2009.

According to Aon, which tracksroughly half of the UKs private sectorpension scheme liabilities, market

conditions are continuing a down-ward spiral.A spokesman said: The main cause

of the increased value placed on theschemes liability is the fall in the

yield available on government securi-ties.

He added: The lower yields are aproduct of the weak and slowing

world economy, very loose monetarypolicy as credit conditions remaintight, and the flight to safety effectfrom abroad due to problems in the

Eurozone.The government bond yield isused as a benchmark for assessingpension scheme liabilities. The 20

year government gilt yield hasdropped to 3.76 per cent, a level at

which it has only been once beforeduring the last ten years.

The top 200 pension schemes accu-mulated liabilities of 608bn in

August and a deficit of 97bn, upfrom 74bn at the end of July and78bn at the end of August 2009.

Pension liabilities rise to morethan 1.2 trillion, says AonBY STEVE DINNEENPENSIONS

News12 CITYA.M. 3 SEPTEMBER 2010

Recruitment in the UK remains sluggish Picture: Micha Theiner/City A.M.

Make Hays while the sun shines in AsiaFEW industries fare worse in a reces-sion than recruitment so Hays wasalways going to have a tough time,so it is not surprising that a drop inprofits of 53 per cent comes in wellahead of most gloomy predictions.Positive notes include a pick-up in

job churn, allowing the firm to gen-erate fees without relying on job cre-ation.

More interesting though is thefirms re-alignment as an interna-tional entity. Around 58 per cent ofits business, and 83 per cent of itsoperating profit, comes from out-

side of the UK and this looks set to

increase with new markets openingup in Mexico and the US. In fact, 20of the firms 28 international mar-kets grew net fees by at least 10 percent in the fourth quarter, indicat-ing its lack of reliance on the slug-gish UK market is already payingoff. With net fees continuing togrow, driven by 28 per cent growthin Asia Pacific, this seems a goodtime to climb tentatively back onthe recruitment wagon.

BOTTOMLINEAnalysis by Steve Dinneen

Chief executive AlistairCox says the firmfinally turned a cornerin December and is

now back on track

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News 13CITYA.M. 3 SEPTEMBER 2010

LEHMAN Brothers Holdings, thebankrupt US investment bank, needsat least $550m (357.4m) to keep itstwo bank units going as it prepares tosell them or shut them down in 18months, court documents show.

Lehman asked a Federal bankrupt-cy court judge in Manhattan yester-day to approve the capitalcommitments and sale plans, whichare part of Lehmans blueprint forunwinding its operations after filingfor bankruptcy protection nearly twoyears ago.

The sale of the bank units couldbring in $1bn to $2bn, Lehman hassaid, and are among the largest singleassets Lehman has left to sell.

In the filing with a US bankruptcycourt, Lehman said it was faced witha choice of either allowing the unitsto fail or injecting capital into theirbalance sheets to recover significantvalue for its creditors.

It asked the court to approve settle-ments with the banks and wants tobe allowed to sell Aurora Bank FSB,formerly known as Lehman BrothersBank, within 18 months or shut itdown if unable to find a buyer.

Aurora has struggled to meet capi-tal requirements as regulators havelimited its ability to offer new certifi-cates of deposit.

It also asked the court to approve asettlement agreement that wouldallow it to sell or dissolve its other banking unit, WoodlCommercial Bank.

It faces similar restrictions fromregulators due to capital require-ments.

Failure to resolve the capital issuesat the banks would result in estimat-ed losses of between $1.2bn and$3.6bn, Lehman said.

Lehman said that based on 30 June2010, regulatory reports, the values ofits equity interest in Aurora and Woodlands were at $677.6m and$741.6m, respectively, for a combinedvalue of $1.42bn.

Lehman said it would transfer$477m in cash to Aurora and wouldneed to put $75m into Woodlands.

It noted that since February 2009,Lehman has taken steps to supportthe banks capital levels, includingmaking a $200m cash contribution toWoodlands.

It said there was an additional$72m capital commitment that hasnot yet been drawn upon.

UTILITIES services company Spice isexpected to recommend a 247moffer from buyout house Cinven bythe end of the month after announc-ing advanced talks yesterday.

Cinven has locked Spice into exclu-sive discussions with a hefty breakfee, meaning the prospect of anexpensive bidding war with a mystery

third party has receded.Spice has agreed not to seek out

any rival offers.Cinvens dealmakers and its advis-

ers are in the final stage of conduct-ing due diligence on the Yorkshire-based installer of watermeters, which counts British Airwaysand Starbucks among its customers.

Although Cinven is keen to spendmore time scrutinising Spices con-tracts, sources said it expects to makea concrete offer before the exclusivityperiod runs out on 27 September.

Chief executive Martin Towers andfinance director Oliver Lightowlers

are tipped to stay at the helm if adeal goes through.

Towers replaced major shareholderSimon Rigby as boss following a prof-it warning in December, and proceed-ed to offload Spices loss-making gasand telecoms businesses.

Shares in Spice closed up 5.9 percent at 67p as investors placed their bets on a recommendation of the70p-per-share offer, which is Cinvensthird punt after two earlier attempts

were knocked back by the Spiceboard.

Spice set to give thumbs-up to 247moffer from Cinven by end of September

EUROPES biggest maker of own-brand household and personal caregoods McBride said it faced rising rawmaterial costs and weak retail mar-kets as it met forecasts with a 38 percent rise in annual profit.

The group said yesterday it was bet-ter placed to cope with challengingconditions than in the past, and thatrecent trading was in line with expec-tations. The firm has agreed to buy aninitial 70 per cent interest in

Dermacol, a privately owned, Czech-based manufacturer of skincare prod-

ucts for an expected 8m. It will buythe rest in 2017 in an incentive dealwith the current management team.

The full-year dividend was lifted 13per cent to 6.8p a share, while netdebt was cut 22.4m to 60m.

Although weak retail markets andraw material inflation will remainchallenging in the short term, our balance sheet remains strong,McBride chief executive Chris Bullsaid.

McBride warns of costsafter 38pc rise in profitCONSUMER

FIRESTONE Diamonds said it reachedproduction plant capacity targetsahead of schedule and recovered ahigh quality diamond at its BK11mine in Botswana, raising its expecta-tions for the average value of outputat the mine.

It said early diamond recoveriesincluded a 13.74 carat stone, with

value estimated at $5,000 (3,428) percarat. This recovery is very significantand confirms our expectation thatlarger diamonds will be recovered atBK11, chief executive Philip Kennysaid.Firestone said it would comfort-ably exceed the target production of1.5m tonnes a year at the productionplant once the phase two commis-sioning was completed in the fourthquarter of 2010.Firestone, which had

agreed to buy rival Kopane DiamondDevelopments for $71m to get itshands on Kopanes Liqhobong kim- berlite project in July, said plansdeveloped in relation to the minewere at an advanced stage.

But the company said a plant it wasbuilding for Debswana Diamond at aBotswana mine would be delayed toallow Debswana to focus on certainhigher priority projects.

Firestone meets mining targets at itskey BK11 diamond mine in BotswanaMINING

ENGINEERING company Weir Groupexpanded its presence in the Indian

market with the purchase of BDKEngineering Industries yesterday.BDK specialises in valve manufac-

turing for energy sectors, and is based in the southern state ofKarnataka and generated 20.9m inthe year to March, with gross assetsof 16.7m.

The firm did not disclose the valueof the deal. Weir, which may join theFTSE 100 in next weeks reshuffle,already owns two other Indian min-

ing and power station facilities.The firm announced a 58 per cent

rise in pre-tax profit in the first halfof the year to 144m.

The purchase of BDK brings 600

new employees into the Glasgow-based firm. The two other operationsin India employ 350 people.

Keith Cochrane, chief executive of Weir Group, said: This acquisitionfurther strengthens our emergingmarket footprint.

Cochrane added: BDKs range of valves will enhance our global cus-tomer offering and its Indian salesnetwork will provide an additionalroute to market for many of our

existing products.Commenting on the transaction,

BDKs founder Bharat Khimji said:My family has developed BDK overthe last 30 years into an internation-

ally recognised valves manufacturer.We are pleased to entrust thegrowth of the business to an engi-neering group of Weirs global stand-ing. My sons and I look forward tocontinuing to play our roles in ensur-ing a smooth transition.

Weir employs more than 9,000people around the world, workingacross the mineral, oil and gas andpower sectors.

Shares closed flat at 12.71.

Weir expands Indian businessBYMARION DAKERS

ENGINEERING

Lehman bank

units set forsale or closureBYHARRY BANKS

BANKING

BYOLIVER SHAH

UTILITIES

BEST OF THE BROKERS

ANALYSIS l Pernod Ricard

58

60

62

64

66

68

24 Aug4 Aug15 Jul25 Jun7 Jun

61.252 Sep

PERNOD RICARDStandard & Poors rates the drinks firm abuy with a target price of72, addingthe companys recent results proved itstheory of an improving trend in underlyingsales. The broker has raised its earningsper share forecast for 2010 to reflect cur-rency benefits, and said sales in emergingmarkets are performing well.

ANALYSIS l Intertek Group

1,400

1,500

1,450

1,550

1,600

1,650

1,750

1,700

24 Aug4 Aug15 Jul25 Jun7 Jun

p 1,687.002 Sep

INTERTEKMorgan Stanley downgrades Intertek tounderweight citing its full valuation.Believes earnings growth is unlikely toreturn to its previous highs given themuted economic recovery and believes itscurrent price to earnings ratio is unattrac-tive. Suggests Aggreko, which it ratesbuy as a better bet.

ANALYSIS l Vivendi

16

17

16.5

17.5

18

18.5

19.5

19

24 Aug4 Aug15 Jul25 Jun7 Jun

19.472 Sep

VIVENDIExecution Noble rates the media giant ahold with a fair value price of20. Thebroker says the main obstacle to upgradingthe shares is the lacklustre growth of cash-flow, which is set to decline to1.8bn thisyear. However, it has raised its target pricefrom19.50 to factor in lower prospectiveliability in the firms US class action lawsuit.

To appear in Best of the Brokers email your research to notes@cityam.com

BOUTIQUE investment banking outfitHawkpoint Partners has been atSpices side as it has played hard-to-get with Cinven.

Vice chairman Christopher Kemballand managing director Chris Robinsonare Hawkpoints lead advisers on thedeal, helped by Serge Rissi. KemballsCV includes stints at ING Barings,where he was global head of emergingmarkets corporate finance, DillonRead, where he was managing direc-

tor, and Kleinwort Benson. Robinson

joined Hawkpoint from LloydsMerchant Bank and previously workedat Deloitte Ross Tomatsu.

On the opposing side for Cinven areCharlie Batten of Investec andStephen Georgiadis of Altium Capital.Batten joined Investec from DresdnerKleinwort after the German bankdecided to pull out of the UK corpo-rate arena. Georgiadis has a wealth ofexperience in cross-border merger &acquisition projects and debt financ-ings, having begun his career at HillSamuel & Co in 1983 before movingto Apax Partners in 1985. He startedat Altium in 1990.

The wrangle between the two com-panies is reaching a conclusion aftermonths of manoeuvring. Spice dis-missed indicative offers of 56p pershare and between 62p and 65p per

share before relenting at 70p.

CHRISTOPHER

KEMBALL

HAWKPOINT

PARTNERS

8/8/2019 Cityam 2010-09-03

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FRENCH spirits giant Pernod Ricardsaid it expected a good year as emerg-ing markets fuelled sales rises butthe upbeat statement failed toimpress investors yesterday.

Pernod posted net profit of951m(791.6m) for the year to the end of

June, up one per cent on a year earli-er. But shares in the worlds second-largest spirits group after Diageoclosed down 2.4 per cent at 61.25 onthe Paris exchange after the resultsmissed analyst forecasts due to weak-er-than-expected trading in Europe.

The company, whose brandsinclude Glenlivet whisky and anisedrink Ricard does not give a detailedforecast for the year ahead until ashareholders meeting in November.

However, chief executive PierrePringuet predicted a surge in sales inemerging markets, particularly in

Asia. He added: We are having agood start to the year the world isdoing better.

Pringuet also said there wereencouraging signs in Europe butausterity measures to rein in govern-ment spending were taking their tollin Greece while Spain was still on a

negative trend, he said.He added the UK is also part of that

downward trend as the hangoverfrom recession takes its toll.

But the companys Martell cognacand Chivas Regal scotch have provedpopular in China and Latin America.

Pernod also owns the Mummchampagne brand, which was the

worst performer out of its top 14labels. The Paris-based company hascompleted its 1bn asset disposalplan and was well on track toachieve its goal to generate free cashflow from operations of 3bn overthe three years to 2010-11.

Last week rival Diageo forecastslightly higher profits growth this yeardriven by developing markets but saidthe economic recovery was variable.

Conning Asset Management, Paul Stapley and Roy Jenkinson . The City Views vox pop on the $33bn Facebook valuation (26 August) included a contribution said to be by Paul Stapley together with a photo-

graph said to be of him. In fact the photograph was of Mr Stapleys colleague Roy Jenkinson. Further neither Mr Stapley nor Mr Roy Jenkinson in fact contributed to the vox pop and neither has any connectionwith Conning Asset Management as stated in the piece. We apologise to all for the confusion.

DSG International said yesterday itstotal group sales were up three per

cent after a boost from World Cup TVpurchases and the success of the iPad.In an update on trading for the 12

weeks to 24 July the company, whichowns Currys and PC World, said itsonline sales had surged by 12 per centcompared with the same period last

year.DSG said its store refit programme

was on track with 200 stores nowreformatted in Britain.

The retailer, which also owns

UniEuro in Italy, Elkjop in Nordiccountries, and Kotsovolos in Greece,is two years into a turnaround planfocused on selling underperforming

businesses, cutting costs, revamping

stores, opening larger stores, andimproving product ranges and cus-tomer service.

Meanwhile, the company is pin-ning hopes on Christmas sales,including 3D TVs, LED backlit TVs,

Apples iTouch and motion-sensorgaming devices. Group chief execu-tive John Browett said: In terms ofthe economic environment, were notin the double-dip school, we dont seeany evidence of that in the way that

consumers are spending.Our UK businesses performed par-

ticularly well, most notably with cus-tomers responding to our strong

World Cup promotion and the excel-

lent product ranges on offer.DSG is facing a challenge from USelectricals market leader Best Buy

which is now operating in the UK.Best Buy, through its joint venture

with Carphone Warehouse openedthree electrical goods megastores this

year and said it could build a chain ofup to 100 shops to challenge DSG.Meanwhile, DSG will next week askshareholders to approve a namechange to Dixons Retail.

DSG nets a World Cup boostBY JOHN DUNNERETAIL

Pernod hit by

weak tradingin EurozoneBY JOHN DUNNELEISURE

Consumer News16 CITYA.M. 3 SEPTEMBER 2010

CARLUCCIOS SOLD IN 90m DUBAI DEAL

ITALIAN restaurant chain Carluccios yesterday agreed to a 90.3m takeover by MiddleEastern retail giant Landmark Group. Dubai-headquartered Landmark has offered142p a share in cash for Carluccio's, which has 47 restaurants and food shops in the UK.Landmark plans to keep on Carluccios existing management team, including chief exec-utive Simon Kossoff and chairman Stephen Gee. Picture: REX

NEWS | IN BRIEF

Restaurant Group profit surgesThe Restaurant Group which ownsGarfunkels, Chiquito, Frankie &Benny's yesterday reported an upturnin profit despite the ash cloud crisis

which hit its airport concessions.It saw its pre-tax profit rise 13 per centto 24.6m in the six months to July.The company raised its interim dividendten per cent to 1.54p per share on thestrength of the results. Chief executiveAndrew Page said: The ash cloud hit ushard, costing us around 500,000. TheWorld Cup also hit our numbers asfewer people were going to cinemas andthats where we have restaurants aswell. However, we were helped by agreat performance at our Londonrestaurants with tourists and day-trip-pers from across the UK using us.He said the company would be opening25 more restaurants, including several inLondon over the coming year.

Zara launches online storesZara yesterday launched its first onlinestores. The clothes chain will sell gar-ments at identical prices to stores,charging 3.95 for home delivery.Ordered items can be picked up free ofcharge at shops. The label's ownerInditex, the worlds biggest clothingretailer by sales, has launched Zaraonline in Britain, Spain, Portugal, France,Italy and Germany. The retailer, whoalso owns Massimo Dutti Bershka, hasplans to go online in America, Japan andSouth Korea next year. Despite a deepglobal recession, online retail sales haveboomed, particulary among young con-sumers. Online retail sales are projectedto grow in Western Europe to 93bn in2014 from 68bn in 2009, according toconsultants Forrester. Zara chief execu-tive Pablo Isla said: "Internet and theworld of social networking are indispen-sable tools and extraordinary channelsfor communication, and fit perfectlywith our groups philosophy.

CITY VIEWS: HAS APPLE SPREAD ITSELF TOO THIN BY MOVING INTO TV PRODUCTS? Interviews by Marion Dakers

Im perfectly happy with Apple expand-ing, and think they get it right a lot of thetime. I would love to have an iPhone, butmy mobile phone network wont offerthem for another three months,so Im stuck with my oldphone.

BARTOSZ WOJTOWICZ | NOMURA

I would never queue outside a shopfor an Apple product. I dont under-stand this need to be the first to getyour hands on a product, and Apple isone of the worst for this. I considerusing a computer as work, and Idont like the idea of using it forfun such as watching TV.

JIMMY SMALES | COMMONWEALTH BANK OF AUSTRALIA

Im quite open to buying Apple prod-ucts, if they have a use. I only need aphone to make and receive calls, andI only need a TV for one purpose. Mytwo teenagers would probably bemuch more keen than I am, though,as theyre a bit more tuned in tonew technology.

UZMA EVENING | TENET GROUP

ANALYSIS l Pernod Ricard

60

62

64

66

68

4 Aug 24 Aug15 Jul25 Jun7 Jun

61.252 Sep

TOTAL GROUP SALESUP 3 PER CENT*

ONLINE SALESUP 12 PER CENT*

200 - THE NUMBEROF STORE RE-FITS

PLANNED FOR THE UK

100 - THE NUMBER OFBEST BUY SHOPS

PLANNED TO CHALLENGEDSG IN THE UK

*12 WEEKS TO 24 JULY

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CAR RENTAL company Avis BudgetGroup raised its bid for Dollar Thrifty

Automotive Group three per cent to$1.35bn (877m), as it looks to wrestthe company from rival Hertz GlobalHoldings.

Avis raised the cash portion of itsbid by $1.50 to $40.75 a share on yes-terday. The stock portion of the dealremains unchanged at 0.6543 Avisshare for each Dollar share, bringingthe total offer up to $47.44 as of yes-terday morning.

The Avis bid is now 22 per centhigher than the deal Dollar Thriftyagreed to with Hertz in April. Dollar

Thrifty rebuffed Avis previous bidlast month, even though it was thehigher offer, on worries that Avis

would not be able to close the deal forantitrust reasons.

The company also said then thatAvis unwillingness to offer a reverse breakup fee was problematic.Nevertheless, Avis refused to includea reverse termination fee in yester-days bid for the budget brand, argu-ing that the possible payment hasnothing to do with certainty of clos-ing.

Avis also said that it will furtherincrease its offer if Hertz and Dollar

Thrifty reduce the breakup fees theyagreed to under their deal.

Low-cost brands like Dollar Thrifty one of the few major carrental brands to post a profit in2009 have become increasinglyimportant in the car rental industryas consumers try to save money intight economic times.

Hertzs offer is currently worth$38.83 a share, or about $1.11bn.

Both offers are below Dollar Thriftyshares, which were trading around$47.97 on the New York StockExchange yesterday.

Hertz this week raised doubtsabout Avis ability to get a deal passed

by antitrust regulators.

NORWEGIAN oil company Statoil isreadying a fourth-quarter flotation ofits international chain of gas stations,

joining the industry trend to focus onmore lucrative upstream operations.

The retail divisions listing on theOslo stock exchange will test theappetite for new share offerings inNorway along with the expected IPOof insurance group Gjensidige due inlate 2010.

Analyst Trond Omdal at Arctic

Securities said he had estimated apotential market capitalisation for

the unit of 10-12bn Norwegiancrowns, but added that it could fetchmore based on recent strong earn-ings. We will move forward withpreparing for the listing and then

well see whether we get the right value, Statoil chief executive HelgeLund said. Lund declined to commenton the potential value the IPO. Hesaid Statoil expected to keep morethan 50 per cent of the division dur-ing the bourse listing.

Statoil plans spin-off ofits fuel station business

OIL

AMERICAN International Group (AIG)filed an application yesterday withthe Hong Kong Stock Exchange to listits Asian life insurance unit, AIAGroup.

The application brings bailed-outAIG a step closer to AIAs initial publicoffering (IPO), which is expected toraise about $15bn (9.7bn).

The move is also a key part of AIGsrestructuring.

The Hong Kong Exchange willreview the application, also known asthe A1 filing, in the coming weeks.

AIG, which is nearly 80 per centowned by the US government, is dis-posing of assets to repay taxpayers

who committed $182.3bn to prop upthe insurer during the financial crisis.

The AIA IPO, whose debut is expect-

ed by November, comes after AIGtried to unsuccessfully sell the busi-ness earlier this year to Prudential for$35.5bn.

Citigroup, Goldman Sachs Group,Morgan Stanley, Deutsche Bank arethe global coordinators for the AIAIPO. The filing also contained a valua-tion range for AIA, which sources said

was very wide and only so that thebourse can assess potential listing fees.

AIGs float of Asian unit looms as filesapplication with Hong Kong Exchange

INSURANCE

RUSSIAS Gazprom, the worlds biggest gas producer, beat forecasts

for first-quarter sales and profit, as asurge in domestic revenues offset asharp drop in prices to European cus-tomers.

Gazprom supplies a quarter of theEuropean Unions gas needs, but eco-nomic weakness has slashed demand,and some customers there havesecured lower prices on long-termcontracts, citing cheaper fuel on spotmarkets.

Gazproms total revenue increased

14 per cent to 956.8bn roubles(20.2bn), compared with a Reuterspoll estimate of 946.6bn, as domesticsales jumped 47 per cent.

Export sales, mostly to Europe,

Gazproms biggest gas export market,declined by 22 per cent to 286.22bnroubles, as a 36 per cent drop inprices outweighed a rise in sales vol-umes of 37 per cent.

Gazprom said it did not expect anyfurther contract revisions, but aban-doned its previous projections for anincrease in European sales to 145bncubic metres this year from 142 bcmin 2009.

We expect gas sales [volumes] to

Europe in 2010 to be flat compared to2009, chief financial officer AndreiKruglov said.

Gazproms free cash flow for thequarter hit a record 233bn roubles,

nearly triple the amount for all of2009, which put it in a more comfort-able position to manage its 977bnroubles net debt, which it said it

would continue to cut after havingcut it by nearly 30 per cent in thethree months.

Earnings before interests, taxes,depreciation and amortisation roseto 407bn roubles from 337bn roublesa year ago and 334bn roubles in thelast quarter of 2009.

Cold winter boosts GazpromBY HARRY BANKSENERGY

Avis raises its

bid in DollarThrifty battleBY HARRY BANKS

AUTOMOTIVE

News18 CITYA.M. 3 SEPTEMBER 2010

TT ElectronicsThe electronics firm has appointed

Michael Baunton CBE as an independ-ent non-executive director. He has

worked within manufacturing for 40years, and held senior executive rolesat Caterpillar, Perkins Engines andTennecco. He is currently chairman ofthe Society of Motor Manufacturers,and was awarded a CBE in 2004 forservices to engineering.

CapcoThe business and technology consul-tancy has hired Ian Holden to its bank-ing practice. He joins Mark Jenkinsonand Peter Lewis in the leadership team.Holden was previously a partner atBearingPoint, where he led the finan-cial services practice in the UK. He has

also held senior roles at DeloitteConsulting and Price WaterhouseManagement Consulting. He has over15 years experience in delivering man-agement consultancy projects.

JP MorganThe banking groups European SmallerCompanies Trust has appointedCarolan Dobson as an independentnon-executive director with effectfrom 1 September. She is chairman ofQinetiQ Pension Fund, a trustee ofAvon Pension Fund, a non-executivedirector of Shires Smaller Companiesand member of the Competition

Commission and chairman of theFinance and Regulation Group. Dobsonhas previously been head of UK equi-ties at Abbey and a main board direc-tor of Murray Johnstone.

Chariot Oil and GasThe oil and gas explorer has appointedAdonis Pouroulis to non-executivechairman with immediate effect.Pouroulis, who co-founded the compa-ny, was a non-executive director. Hereplaces Peter Kidney, who hasstepped down from his role as chair-man and from the board to pursueother interests.

CITY MOVES | WHOS SWITCHING JOBS Edited by Marion Dakers

Signia WealthThe wealth manager has hired Mark Elliott asmanaging director. Elliott is joining the family-run firm from Barclays Wealth, where he estab-lished the financial institutions group andprofessional practices business in 2007. Beforethis he worked for private bank Coutts asgroup head for the executive team and asgroup head for the in-pats team, which focusedon UK residents with an overseas domicile. Thisis the firms 19th hire since launching in March.

+44 (0)20 7557 7245morganmckinley.comTo appear in CITYMOVESplease email your careerupdates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT

in association with

AIG chief executive Robert Benmosche(left) is divesting units to help repay theUS Treasury for its bailout. Mark Wilson(right), who has been AIAs chief execu-tive since 2009, will stay with the firmuntil the end of the year to see the floatthrough. Picture: REUTERS

ANALYSIS l Dollar Thrifty Automotive

40

44

48

52

52

4 Aug 24 Aug15 Jul25 Jun7 Jun

$ 48.052 Sep

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Retiring overseas has pensionimplications and hidden costs.Avoid the pitfalls with carefulforethought, writes Jessica Mead

No matter where in the world you are retiringto, offshore banking could be for you. Far frombeing the exclusive preserve of f inancial whizkids and the mega-rich basic offshore pack-ages and financial advice are available to any-one retiring with as little as 5,000 in cash.Well-known international banks such asBarclays Wealth, HSBC and AbbeyInternational can set up offshore accounts insecure, stable, tax efficient countries. For amonthly fee of 25 and a minimum deposit of5,000, HSBC International can offer you a

basic offshore package, including 24 hour

internet and phone banking in English, inter-national money transfers, a choice of curren-cies and the possibility, depending on yourcountry of residence, of interest paid gross oftax. Packages get more luxurious and tailoredfor more complex needs the larger yourdeposit.For those more liquid, 50,000 can buy youthe comfort of a Relationship ManagerService with Barclays Wealth. These man-agers offer specialist advice on sophisticatedinternational investment, savings and mort-

gage circumstances. Donata Huggins

FOCUS ON | OFFSHORE BANKING

Western Europe is the destination of choicefor retirees heading overseas thanks to itsproximity to the UK, its warmer climate, andits perceived slower pace of life.Many choose not to retire to a designatedexpat community, according to NatWestresearch, and 87 per cent own their home out-right.For many pensioners, healthcare will be anincreasingly important cost. Luckily, the statehealthcare systems of most European coun-tries are open to British expats.If you are registered with the local authority in

Spain this can expose you to tax then youhave the same healthcare rights as a native.The Centre for Future Studies Frank Shawsays that the language barrier can be a bigissue for retirees in the state healthcare sys-tem you may wish to go private but this willbe expensive. In France, you are entitled toFrench healthcare, which is world-renowned,but you must be in receipt of a UK state pen-sion and an E121 form to avoid paying contri-butions. This will cover you up to a certainamount; top-up insurance is recommended topay for the rest. Jessica Mead

FOCUS ON | LIFE ABROAD IN WESTERN EUROPE

Pack a tax plan if you wanta retirement on the beach

*Available to HSBC Premier customers. HSBC Premier is available in 45 countries worldwide. Financial eligibility criteria applies.HSBC Bank International is regulated by the Jersey Financial Services Commission for Banking, General Insurance Mediation,Investment and Fund Services Businesses and licensed by the Guernsey Financial Services Commission for Banking, CollectiveInvestment Schemes and Investment Business. Licensed by the Isle of Man Financial Supervision Commission. Deposits andScheme as set out in the Banking (Depositors Compensation) (Jersey) Regulations 2009. HSBC Bank International Limited is a further information on these Schemes, please visit the Important Information section on our website www.offshore.hsbc.com/1/2/help us to continually improve our service, and in the interest of security, we may monitor and/or record your communications with us. HSBC Bank International Limited 2010. All Rights Reserved. MC8316/SJ/2206397/AC19238

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Call +44 (0) 1534 616079

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their decision the NatWestInternational Personal Banking Qualityof Life Report, published last week,reveals that 71 per cent believe theymade the right decision in retiring over-seas and 58 per cent say their experi-ences have been better than expected.

Still, while careful planning lacks theromance of a spontaneous decision, it will ensure that your idyll wont betroubled by the complex web of taxdirectives, residency guidelines and cur-rency fluctuations. Relocating yourentire life inevitably causes its fair shareof paperwork but minimising the redtape and avoiding the pitfalls will make your retirement overseas a calmer,more pleasant experience.

Leaving the UK tax system is nowmuch harder than it used to be, saysRonnie Ludwig, partner in the private

wealth team at accountants SafferyChampness.

Prior to last April, it was simply a caseof making sure you were not in the UKfor a certain number of days 90 daysper year over four years or no more than186 days in any one tax year. This hassince been tightened up you may haveto cut your ties with the UK: noproperty, no UK credit cards, no UKmobile phone as well as removing your-self from the electoral register.

If you dont tick enough of theseboxes, then HMRC can deem you resi-dent in the UK and you can end up being taxed twice. This is an absolutenightmare for older people who mayhave little experience of the tax systemand then panic, Ludwig adds.

Chris Mills, tax director at GrantThornton, agrees that you should makesure you are clear about your tax statusand know what you are getting yourself.He points out that countries can varysubstantially in their tax treatment.

For example, if you sell your principal

property in the UK before you move,then you wont pay tax on it. If you sellit after you have moved, the proceedsmay count towards your taxableincome. Equally, depending on your Isaprovider, you may be restricted in yourchoice of investments if you areresident abroad, warns BestInvestsAdrian Lowcock.

REORGANISE YOUR FINANCESExpat pensioners would do well to reor-ganise their financial affairs to takeadvantage of and adapt to the newregime under which they will be living.

IF YOU are tempted to spend yourgolden years in the sun and escape over-crowded, polluted London, you are notalone. Emigration from the UK reached

a record high in 2008 and that was beforethe introduction of a 50 per cent higher taxrate and the impending austerity measures.But planning is essential if you want to livethis particular retirement dream.

Few expat pensioners appear to regret

Investment | Personal Finance20 CITYA.M. 3 SEPTEMBER 2010

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This may leave you paying less tax buteven if you end up paying more youshould still consider whether it is worthit for the better quality of life andperhaps for more efficient healthcareservices.

For retirees who have spent their work-ing lives in the UK, their main source ofincome is likely to be their pensions. Inmost cases, you should make sure youarrange for your pension to be paid grossand you will then be taxed accordingly inyour country of residence.

This regular international wiring offunds incurs two costs: the transfer costand the currency fluctuation. Throughfirms such as Moneycorp pensioners canarrange a regular payment, often costingonly 4 per transfer, and are able to fixthe exchange rate for a minimum of sixmonths if they think it could moveagainst them.

Retirement overseas is well worth con-sidering, but it pays to take off those rose-tinted spectacles and seek specialistadvice. 0

50,000

100,000

150,000

200,000

250,000

300,000

ANALYSIS l Number of UK expat pensioners by country

Australia France New Zealand Spain USAPortugalCanada

Source:CentreforFutureStudies

CORKING INVESTMENT ADVICE

R

N

E

E

ASIAS MOON

TO BRIGHTEN

WINE ORDERS

GARY BOOMMD & FOUNDER OF FINE WINE

MERCHANT BORDEAUX INDEX

AS THE wine market reluctantly dragsitself back to work after the longsummer break we approach whathas become one of the defining peri-

ods of the trading year, the run-up to Asiasmid-autumn festival of the moon, which fallson 22 September this year.

This celebration not only provides a wel-come boost to trade but also gives a realinsight into both the shape and level ofdemand over coming months. In other

words, it is a key indicator of confidence.This year carries more than its fair share

of uncertainties, but the early order-booksuggests strong reasons to be positive. Yes,there are clear risks: first, the continuingworries about weak data coming out of theUS. This, coupled with the nascent efforts ofthe Chinese authorities to curtail creditavailability, provides a serious challenge tomacro confidence in this early phase ofglobal economic recovery. Furthermore, theongoing concerns about the health of theEurozone economy do little to boost senti-ment in the markets. And for a discre-tionary good such as fine wine, confidenceis a crucial intangible.

Further reason for caution can be foundin the hangover from a riotously successful2009 en primeur campaign. As mentioned

in last months column, this vintage generat-ed an enthusiasm that, at times, borderedon the febrile, and, as is so often the case,

judgement was the victim as buyerssplurged more of their annual wine budgetsthan was entirely wise.

All things being equal, such excess will

mean cutbacks through the back end of theyear. This excessive exuberance applies lessto the Asian market, as their en primeurparticipation was largely restricted to ahandful of first growths and leading right-bankers.

However, here too there is reason forsobriety as prices for the first growths havesettled at some 15-20 per cent off thepeaks achieved in the heady days of July.Speculators with recently scorched fingerswill presumably act with a little more cau-tion whilst the pain remains fresh.

ROUSING CRESCENDODespite the risks, over in the bull cornerthere is disbelief that confidence is even inquestion. Indeed, the dominant sentiment isone of optimism as a combination of low

inventories and new market players as wellas strong momentum in the first half of theyear The Bordeaux Index (BI) standssome 21 per cent up on the year to date andshows growth in 16 of the last 17 months suggest that this year will close with a rous-ing crescendo.

So what does the early order-book show?Firstly, and most importantly it tells us thatAsia, and China in particular, is consolidat-ing its position as the dominant player onthe block. BI is not unusual in seeing thepercentage of sales to Asia doubling to over50 per cent during the last couple of years.This is a trend set to continue.

Secondly, the consumption and gift-givinghabits of Chinese buyers remain in forcewith a handful of brands dominating.Despite the heady prices they now com-mand, Lafite remains the headline storywith demand roughly equal to the sum ofthe other four first growths.

Looking a little further along, there is astrong seam of support for the cheaper endof the first-growth spectrum and someinterest in leading Burgundy. In short, a

very familiar path in a slowly maturing mar-ket.While caution is appropriate, the wine

market suggests that to view the worldsolely through the gloom of the US and theEurozone would be wrong. The bright Asianmoon presages good times ahead.

PERSONALFINANCE NEWSBY DONATA HUGGINS

LANDLORDS LACKING IN CONFIDENCEConfidence among landlords has dipped forthe first time in almost two years. The lat-est National Landlord AssociationOptimism Index shows a drop from 51 to

47 points between the first and secondquarter. The drop is believed to have beencaused by falling house prices and cuts tohousing benefits, announced in the emer-gency budget. Despite this, landlords arebullish about the future, 54 per cent ratingtheir prospects for the next three monthsas good or very good. They predict thatpeople will hold off buying due to theuncertainty in the housing market at themoment and continue to rent.

BUNGALOWS RESISTANT TO DOWNTURNHouse prices might be falling nationally, butbungalow owners will be cheered by thefact that the average price of a bungalowhas risen by more than any other propertytype over the past year. According to theBank of Scotland, owners of bungalowshave seen the value of their property riseby 8 per cent this year, rising from166,018 last year to 178,701, exceedingthe UK average. Detached properties come

a close second, adding 7 per cent to theirvalue. Flats are still the most popular pur-chase choice this year, but their value hasstayed flat. Terraced and semi-detachedhouses have fared badly, suffering a 5 percent and 1 per cent drop respectively.

TD WATERHOUSE AND AJ BELL OFFER SIPPBritains largest execution-only broker TDWaterhouse has teamed up with UK Sippadministrator AJ Bell to launch animproved online Sipp product to meet clientdemand. The Sipp has no initial set-up feesand provides a function to trade across 15international exchanges and the ability totrade and hold cash in multiple currencies.But investors should remember that trad-ing on foreign exchanges leaves them opento currency fluctuations. The administrationfee is charged twice a year at 0.25 per centof the Sipp plus VAT. Customers will alsoget access to the TD Waterhouse FundsSupermarket, which offers over 1,300 dis-counted funds.

Life can be a beachfor expat pensioners ifthey plan ahead.

Picture: GETTY

Investment | Personal Finance 21CITYA.M. 3 SEPTEMBER 2010

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I

N London, homes with good riverviews are much sought-after and hardto come by once you have one, youre not likely to relinquish it.

Homes with 80 metres of uninterruptedThames frontage, however not to men-tion 10 bedrooms and a ballroom presenta very, very rare opportunity for anyonewith the readies to stump up. The askingprice for Gordon House, which overlooksRichmond Lock, is 15m hardly a snip,but for that you get a truly splendid statelyhome just a short walk over the river fromRichmond (technically the house is in Twickenham). Its the kind of place forwhich the words well appointed werepretty much invented.

As its sturdy red-brick construction sug-gests, Gordon House dates from the mid-

dle of the Victorian era. Its now Grade IIlisted, and has been substantially restoredby commercial developers Octagon. Theinteriors reflect an atmosphere of grandVictorian ambition witness the marblepillars and gleaming chandeliers of thereception hall. Theres a rather fabulous wooden staircase there too, curlingupwards to a landing with a balustrade all classically elegant. Other original fea-tures include an impressive marble fire-place, some ornate plaster work andcornices that come from the hand ofRobert Adam.

There are 10 bedrooms, the same num- ber of bathrooms, and five receptionrooms, including that magnificent ball-room. Both that and the chapel but ofcourse, every distinguished mansion must

Those after something redolent of aristocratic gloryshould look at this riverside palace, says Timothy Barber

The period mansion with its own chapel

Living | Property of the Month22 CITYA.M. 3 SEPTEMBER 2010

l Richmond is located 15 milessouth west of central London, and isthe end stop on one branch of theDistrict Line. Its 15 minutes by fasttrain to Waterloo.

lOnce the stomping ground of roy-alty, Richmond is consideredLondons most attractive borough,and is famous for its royal parks

(particularly the Deer Park, with2,500 acres of hills), historic housesand riverside prettiness. The Thameslinks Kew Gardens, Richmond andHampton Court Palace.

l Rugby fans are near Twickenhamstadium, the home of English rugby,while gardeners have Kew Gardensnearby.

lThere are some excellent foodand drink options in the area. ThePetersham Nurseries is an award-winning venue serving garden-fresh food (Skye Gyngell, the chef,has become a TV celebrity).The Glasshouse and La Buvetteare also at the very top ofLondons gastronomic ladder, serv-ing first-rate modern European.

NEED TO KNOW | RICHMOND-ON-THAMES AND ITS ENVIRONS

SAVILLS RESIDENTIAL AUCTIONPut your hat in the ring for a bargain at Savills nextresidential auction, which will be held on Monday 13September at the Royal Garden Hotel. One property ofinterest is Lot 138, 27 Derby Street in Colne, Lancashire(pictured) a tw