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FTSE 100 5,790.72 +109.11 DOW 12,716.46 +83.55 NASDAQ 2,848.27 +34.43 /$ 1.58 unc / 1.20 unc /$ 1.32 +0.01

FACEBOOK has taken the first officialstep to becoming a publicly tradedcompany, filing papers yesterday thatoutline plans to raise $5bn in whatcould be the biggest float this year.

Silicon Valleys most anticipatedflotation will see Facebook represent-ed by ticker symbol FB, although thecompany did not specify whether itwould list on Nasdaq or NYSE.

Morgan Stanley will underwrite theoffering alongside JP Morgan andGoldman Sachs, with assistance fromBofA Merrill Lynch, Barclays Capitaland Allen & Co.

The filing with the Securities andExchange Commission has given the world its first authorised peek atFacebooks finances. It revealed thatthe social networking site generatedrevenues of $3.71bn (2.34bn) in 2011 88 per cent higher than 2010s $1.97bnrevenue and a staggering growth onthe $777m reaped in 2009.

Mark Zuckerbergs empire,launched from his Harvard bedroomin 2004, pocketed $1bn in net incomelast year 65 per cent more than the$606m earned in 2010.

The college dropout owns 28.4 percent of the global networking phe-nomenon which, if Facebooks valuereaches the $100bn put forward by

www.cityam.comIssue 1,562 Thursday 2 February 2012 FREE

SIR FREDBACKLASHEX-CHANCELLOR

DARLING LEADS

PROTESTS P3

BUSINESS WITH PERSONALITY

analysts, would place Zuckerberg com-fortably among the top ten richest bil-lionaires in the world.

Secondary trading site SharesPost yesterday priced the company at$89.4bn, valuing its creator at $23.5bnon paper. He earned a basic salary of

$483,333 last year and was awarded$220,500 as bonus. The firm spent afurther $783,529 on Zuckerberg,

which included a security programmeand the use of a private jet.However, starting from January

2013, the 27-year old will reduce his

salary to just $1 a year.Chief operating officer Sheryl

Sandberg, formerly of Google, pocket-

ed 381,966 last year, of which salaryaccounted for $295,833. The blue-branded website boasts

845m monthly active users, of which

Certified Distribution

28/11/11 till 01/01/12 is 92,879

almost half 483m people around theworld log in every day.

This accounts for the heavy extent towhich Facebook relies on advertising,which brought in 98 per cent of rev-enues last year, up from 95 per centthe year before and 85 per cent in 2010.

Facebook admitted 12 per cent of itsrevenues came through its deal withgames group Zynga, stating this as asignificant risk to investors should thesocial gaming company migrate tocompetitors, fail to maintain goodrelations or no longer entice users.

Other risks outlined by Facebookinclude a loss of advertisers, a declin-ing rate of growth, susceptibility tolegal action and the prospect of losingMark Zuckerberg.

Facebook will run a dual class stock,with early investors having ten-to-onevoting power over the shares to be soldpublicly, ensuring Zuckerberg remainsin control.

The company, which has just movedto new Menlo Park address 1 Hacker Way, will follow in Apples footstepsand not pay dividends.

Zuckerberg said in the filing:Facebook was not originally createdto be a company. It was built to accom-plish a social mission to make the

world more open and connected.We dont build services to makemoney; we make money to build bet-ter services. MORE: P6-7

THE RISE OF THE THINKINGMANS COMPUTER GAMEWE PICK FIVE OF THE BEST P24

FACEBOOK BY NUMBERS

845mmonthly active usersworldwide

$5bnto be raised in the float

BY LAUREN DAVIDSONTECHNOLOGY

$3.7bnrevenues in 2011

3,200employees

$1Mark Zuckerbergssalary next year

$1bnnet income in 2011

$23.5bnMark Zuckerbergspotential wealth

$100bnEstimated maximummarket cap

FACEBOOK UNVEILSFLOAT OF THE YEAR

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News2 CITYA.M. 2 FEBRUARY 2012

Hoare Govett

sold at a cost

BRITISH taxpayers will still have tofork out for the salaries of some HoareGovett staff after Royal Bank ofScotland sold the legendary stockbro-ker for just 1.

RBS last night agreed to offloadHoare Govett to US investment bankJefferies andCity A.M. understands thestate-owned lender will pay some staffcosts after the deal has been complet-ed, which is likely to be in March.

The takeover will see around 50 staffjoin Jefferies London office includingcurrent Hoare Govett managing direc-tors. The business will be re-branded asJefferies Hoare Govett.

The origins of the broker go backmore than 100 years. It lost some of its brand value, however, after beingabsorbed into ABN Amro. RBS

acquired Hoare Govett in its otherwisedisastrous 2007 takeover of the bank.

The latest deal comes three monthsafter Jefferies expanded its Europeanfixed income team and it will pick up50 retained clients of Hoare Govett.The British broker does not reveal cur-rent clients but in recent years it has worked with BAE Systems,GlaxoSmithKline and G4S.

Jefferies International presidentDavid Weaver said Hoare Govett is oneof the most distinguished franchisesin corporate broking. RBS did notcomment on the terms of the deal.

BY PETER EDWARDS

M&A

CALLS MOUNT TO CUT TRINITYMIRROR CHIEFS PAYTrinity Mirror is facing renewed pres-sure to rein in the pay of its chiefexecutive Sly Bailey from some of the biggest shareholders in the mediagroup. The shareholders will set outtheir mounting unhappiness over thepay when Trinity Mirrors incomingchairman David Grigson holds aseries of meetings with key investors.

BALLS SEES GAPING HOLE IN CITY BILL The bill to revamp City regulationincludes a gaping hole that couldprevent important warnings fromreaching the chancellor of theexchequer, Ed Balls, Labours shadowchancellor, has warned. In an inter- view with the Financial Times, MrBalls criticised the extensive powersthe bill would grant to the governor

of the Bank of England, Sir MervynKing, saying the new structure could

stifle dissenting voices in the run-upto another crisis.

PAY DEALS IN PRIVATE SECTOR RISEPrivate sector pay settlements inrecent weeks have been runningabove last years levels, bringing work-ers some relief from the squeeze onincomes, according to Incomes DataServices, the pay analyst. IDS saidalmost two-thirds of 30 awardsrecorded this year were worth at leastthree per cent compared with a medi-an rise of 2.5 per cent in 2011.

RELIANCE LAUNCHES $2BN BUYBACKTO REASSURE INVESTORSReliance Industries launched thelargest share buy-back in Indian cor-porate history yesterday, in a movedesigned to stem investor concernsabout sagging performance and way- ward management focus. Relianceshares rose by about two per cent asthe $2bn buy-back began, although

the group declined to comment onthe level of uptake.

FITNESS CHAIN SENDS BOARD PACKING Almost the entire board of FitnessFirst has been axed by its owner in anattempt to stem potential losses ofhundreds of millions of pounds on itsinvestment in the worlds biggest fit-ness club operator. BC Partnershassacked the fitness chains chief execu-tive, finance director and UK manag-ing director and is replacing thechairman and one of the non-execu-tive directors.

MILITARY WEAPONRY WONT HAVE TOBE MADE IN BRITAINFighter jets, warships and otherweaponry may no longer have to bebuilt from scratch by British industryto protect national security. TheMinistry of Defence published aWhite Paper yesterday that eliminat-ed nearly all sovereign capabilities

from its future industrial require-ments.

JOHN CLARE WINS COMET SUPPLIERS'SUPPORT AHEAD OF OPCAPITA'S BUY Veteran retailer John Clare hassecured the support of Comets majorsuppliers just hours before the busi-ness is due to be sold to private equity.The former Dixons chief executive hasmet with the retailers key suppliersin recent days, after trade credit insur-ers placed their coverage of Cometunder review.

DAVID MILIBAND: MY BROTHER AND ARETURN TO OLD LABOURDavid Miliband has broken his silenceto warn that Labour risks moving toofar to the Left under his brothersleadership and is in danger of alienat-ing business. In an article in the NewStatesman magazine, Mr Milibandurges the party to avoid returning toOld Labour thinking and not to be

overly critical of Tony Blairs achieve-ments in government.

PFIZER RECALLS BIRTH-CONTROL PILLSDrug maker Pfizer recalled about amillion packs of birth-control pillsthat werent packaged correctly, which raised the risk of unplannedpregnancies among women whorelied on the pills. Pulled from shelves were Lo/Ovral-28 pills and theirNorgestrel generic versions, whichdoctors have been prescribing for yearsto tens of thousands of women.

GLOBAL SHIPPING PRICES FACE MORECHOPPY WATERSFreight rates hit a record low yester-day on weak demand for iron ore,poor weather conditions in miningregions and a glut of shipping capaci-ty. The Baltic Dry Index, a compositeof commodity shipping costs aroundthe world, fell for a 32nd consecutivesession to 662. The previous low, of

663, came in December 2008, duringthe depths of the credit crunch.

WHAT THE OTHER PAPERS SAY THIS MORNING

Britain is now an anti-business nation

YES, this government is anti-business.This is the first time since 1994, whenTony Blair took over the Labour party,that both government and oppositionare united in their relentless attackson corporate Britain, money-makingand the City. The difference in thosedays and starting in 1979 was thatthe Tories were in power, and that theywere staunch supporters of free enter-prise, rewards for success and lowtaxes. Partly because of the Lib Demsand partly because of their own intel-lectual incoherence, lack of belief inindividual liberty and limited interest

in economics, the Tories are now moreconcerned at pandering to populismor outflanking the Labour party fromthe left, rather than imposing an alter-native, pro-freedom and capitalist nar-

rative. This is the first time since SirEdward Heaths useless Tory govern-ment of the 1970s that no major polit-ical party in Britain is advocating atruly freer market.

No wonder, therefore, that one sen-ior wealth manager told us earlier thisweek that the political climate is nowthe worst it has been for the City andprivate business more generally sinceHarold Wilsons socialist governmentof 1974-76. This is an exaggeration:thanks to globalisation, and the factthat so much of the 1980s-1990sreformist agenda remains entrenchedin policy and culture, there is a big dif-ference in what the political classes aredoing and the actual business climate.But the direction of travel isnt good.

No society has ever done well or cre-ated jobs and incomes, including forits most vulnerable members, by bash-

ing business, crippling the most suc-cessful sectors of its economy or wag-ing war on wealth. It is unfortunate,however, that it is only now that main-stream commentators are starting to

realise that Britain has become anti-business and they have noticed forthe wrong reason. Some in the busi-ness community have lashed out overthe decision to strip Fred Goodwin ofhis knighthood. As to the commentari-at, suddenly even usually anti-businessadvocates sound scandalised about theex-RBS bosss treatment (it was strangeto see so many banker-bashers and ped-dlers of hysterical anti-City sentiment,who have done so much to turn thepublic against all CEOs and all bankers, including the vast majority who have done nothing wrong, sud-denly start defending Goodwin, onewho actually deserves opprobrium).

But this was the wrong issue to getupset about. Supporters of capitalismand rewards for success shouldntdefend someone who is beingpenalised for failure. Goodwin was

knighted for services to banking thatwas untenable. It isnt fair that he wassingled out, and its vital the lynchmob be contained but sometimes,partial justice is better than nothing.

Goodwins deknighting is not whatis destroying the UKs reputation.What is doing that is the war on theCity (rather than sensible reform); con-stant attacks on success; an absurdbelief that fixed pay is a better systemthan variable pay and that politicianscan determine what a fair wage is;the governments failure to deregulatelabour markets; high income andother taxes; an energy policy which iskilling manufacturing; the tax raid onthe North Sea; an inefficient and bloat-ed public sector; inadequate airports; agargantuan budget deficit and exces-sive private and public debt; an inade-quate education system I could goon. Forget Goodwins deserveddeknighting these are the real fail-ings that are debilitating the UK.

allister.heath@cityam.comFollow me on Twitter: @allisterheath

EU REGULATORS have blocked the$7.4bn (4.7bn) deal to mergeexchange operators Deutsche Boerseand NYSE Euronext, saying the com-bined firm would have killed compe-tition in the European futuresmarket.

The two companies are now set toabandon the plan, which would havecreated the worlds biggest stockexchange.

Neither firm was willing to placatethe EU regulator by disposing of itsEuropean futures business, causingthe deal to be blocked. The combinedfirm would have handled over 95 percent of such trades.

Deutsche Boerse said it was ablack day for Europe and that inthe future the continent would strug-gle to compete in global financialmarkets.

The deal was first unveiled inFebruary 2011 and had beenapproved in the US.

BY JAMESWATERSON

CAPITAL MARKETS

EU blocks bourse merger

MORE than 70 people died as footballsupporters wielding makeshift weapons invaded the pitch andcaused a stampede following a matchin Port Said, Egypt, last night.

Hundreds more suffered injury when fans of Masry rioted, chasingplayers and fans from bitter rivals Al-Ahly, after their unexpected win overthe countrys top team.

It is feared the death toll will risefor what the Egyptian governmentcalled its worst football-related disas-ter. Television footage showed sup-porters throwing stones andbrandishing sticks, while parts of thestadium were set on fire.

Riot police who tried to protect theplayers were also attacked and over- whelmed. Some of the dead werethought to be security officers.

Dozens die asriots erupt atEgyptian match

CEO Duncan L Niederauer failed to merge NYSE Euronext with Deutsche Boerse

EDITORS LETTER

ALLISTER HEATH

Editorial StatementThis newspaper adheres to the system of

self-regulation overseen by the Press ComplaintsCommission. The PCC takes complaints about theeditorial content of publications under the EditorsCode of Practice, a copy of which can be found atwww.pcc.org.uk

Printed by Newsfax International,Beam Reach 5 Business Park,Marsh Way, Rainham, Essex, RM13 8RS

Distribution helplineIf you have any comments about the distributionof City A.M. Please ring 0207 015 1230, or emaildistribution@cityam.com

David Weaver talkedup legendary brokerHoare Govett, after hisfirm Jefferies snappedit up for just 1.

4th Floor, 33 Queen Street, London, EC4R 1BRTel: 020 3201 8900 Fax: 020 7248 2711Email: news@cityam.com www.cityam.com

EditorialEditor Allister HeathDeputy Editor David HellierNews Editor David CrowActing Night Editor Marion DakersBusiness Features Editor Marc SidwellLifestyle Editor Zoe StrimpelSports Editor Frank DalleresArt Director Gavin BillennessPictures Alice Hepple

CommercialSales Director Jeremy SlatteryCommercial Director Harry Owen

Head of Distribution Nick Owen

BY FRANK DALLERES

WORLD NEWS

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SENIOR politicians and City heavy-weights including Alistair Darling andTerry Smith yesterday led the backlashagainst the decision to strip of FredGoodwin of his knighthood.

Darling, the former Labour chan-cellor, said it was tawdry for thegovernment to target Goodwin, andasked: If its right to annul hisknighthood what about the hon-ours of others who wereinvolved in RBS and HBOS?

Meanwhile Smith, a vet-eran investor who now runsTullett Prebon, told the BBCthe move was deplorable.Smith also said the honoraryknighthood awarded in 2002to Alan Greenspan, thenthe chairman of theUS Federal Reserve,should be calledinto question.

Lord Jones, aformer CBI

head who briefly served in GordonBrowns government, said there is awhiff of the lynch mob on the villagegreen about this.

Goodwin (pictured) joined theranks of Robert Mugabe and jailedjockey Lester Piggot when he lost hishonour on Tuesday, and MPs havesuggested other the ForfeitureCommittee should look at other for-mer bank bosses, such as Sir TomMcKillop, Lord Stevenson, and Sir

Victor Blank, the former chair-men of RBS, HBOS and Lloyds

respectively.

Conservative Party deputychairman Michael Fallonsaid who knows what willfollow from an FSA reportinto the ill-fated Lloyds-

H B O S m e r g e r .Cabinet Office

sources said,however, that

Goodwinscase was

e x c e p -tional.

Protests overdowngrade ofFred Goodwin SHARES in hedge fund administratorGlobeOp leapt by more than a fifthyesterday after it agreed its 508m saleto US private equity house TPG Capital.

The stock closed up 21.27 per cent at430.5p after TPG set out to build a pres-ence in the market serving the $2 tril-lion (1.26 trillion) hedge fund sector.

The Texas firm could make moredeals in the sector, sources said, whileit wants to grow GlobeOp organically.

TPG beat Advent International tothe deal. It is offering 435p per share incash for London and New York-basedGlobeOp, which administers $173bn inclient assets.

The deal marks a premium of nearly50 per cent to GlobeOps 5 Januaryshare price, just before it announced itwas in talks with TPG.

GlobeOp chief executive Hans

Hufschmid and his team will continueto run the firm and will reinvest 70 percent of their proceeds from the sale.

A series of London advisers workedon the deal, with Barry Weir and James Thomlinson from JP MorganCazenove advising TPG, and EdwardBanks from Evercore Partners advisingGlobeOp, whose corporate brokers areBank of America Merrill Lynch andEspirito Santo Investment Bank.

TPGs lawyers were Linklaters, led byprivate equity partner Carlton Evans.

TPG triumphsin 500m fightfor GlobeOp

BY PETER EDWARDS

BANKING

M&A

News 3CITYA.M. 2 FEBRUARY 2012

CHARGES against former GoldmanSachs director Rajat Gupta have

been expanded by US prosecutors,who have doubled to four the num- ber of illicit tips Gupta allegedlypassed to hedge-fund manager RajRajaratnam.

They also increased the length ofGuptas illegal dealings, claimingthey began in March 2007 ratherthan the previously stated 2008.

This could lengthen Guptas sen-tence if he is found guilty.

Originally charged in October forconspiracy and fraud regarding

insider information he gained as adirector of Goldman Sachs andProcter & Gamble, prosecutors arenow also accusing Gupta of tipping

off Rajaratnam ahead of Goldmans2007 first quarter earnings.

Rajaratnam, who co-foundedGalleon Group, was sentenced lastMay to 11 years in jail on evidencefrom wiretap recordings.

Guptas lawyer Gary Naftaliscalled the charges totally baseless,adding: The newly added charges like the ones brought last year arenot based on any direct evidence,but rely on supposed circumstantialevidence.

CRIME

Further counts of Rajat Guptas illicit trading have been put forward Picture: GETTY

Prosecutors up chargesagainst Goldmans Gupta

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News4 CITYA.M. 2 FEBRUARY 2012

THE PRIVATE equity house behindJapanese restaurant chain Wagamamaand payments network Payzone haspulled a 850m (706.5m) fundraisingas global market turmoil shows littlesign of easing.

Duke Street now wants to raise cashfor every one or two deals it carriesout, although it is set to receive pay-ments to cover operational costs aswell as a performance incentive.

It shelved its seventh fund in whatmanagement regard as a practicalmove given the amount of time need-ed to travel to negotiate with globalinvestors. Duke Street has invested 90

per cent of its sixth fund, which wasworth963m.

The move underlines the problemsfacing mid-market firms as investorssit on their cash despite a slightimprovement in market stability.

Private equity firms raised $263bnin 2011, slightly less than they gath-ered in 2010, according to data firmPreqin, and a far cry from the heightof the buyouts boom, when theypulled in around $600bn a year.

Duke Street, which is focussed onBritain and France, may return to themarket with a traditional fundraisingbut has not set a date.

The firm has previously held stakesin Gala Bingo and DIY chain Focus. Itbought Wagamama from Lion Capitalin a 215m deal last year.

Nobody from Duke Street was avail-able for interview yesterday.

Duke Street shelves plan

for 850m fundraisingPRIVATE EQUITY

TRUETT Tate, the widely respectedhead of wholesale at Lloyds, willleave his job by the end of themonth, the bank confirmed yester-day as part of a management over-haul.

The shake-up will see the numberof executives who report to chiefexecutive Antnio Horta-Osrio cutfrom 13 to five in an attempt toreduce his workload. The CEO had totake two months sick leave last yeardue to insomnia.

Julian Horn-Smith, a non-executivedirector, is also quitting the bank,and will be replaced by Sara Weller,former managing director of Argos.

Tates departure clears out all of

the most senior executives in charge before Horta-Osrios arrival at thebank.

One Lloyds insider expressed dis-

may at the move. You hear Antniosay we need to be the best bank forcustomers and yet here were losingthe director in charge of customerrelations. And you hear him say thebank needs to be a force for good andyet were losing the lead proponentfor many of the social and culturalaspects for the bank.

Tate has forged strong linksbetween the bank and micro-financecharity Opportunity International.

However, a spokesman for Lloydsstrongly refuted the claim that hisleaving would affect either area,pointing out that both customer rela-tions and corporate social responsi-bility have formal chiefs in charge.

Tate is also well-known in bankingcircles outside Lloyds and is a boardmember of AFME (Association for

Financial Markets in Europe). AFMEchief executive Simon Lewis calledTate a positive and supportive mem-ber of the board.

Lloyds shakesup exec boardBY JULIET SAMUEL & DAVID HELLIER

BANKING

TOBY Clark, one of the key advisers onthe aborted 5.2bn takeover of theservices group ISS by G4S, has leftDeutsche Bank, the bank that led theadvice on the deal.

City bankers say they became awareof his departure from Deutsche earlierthis week when his email account wasclosed down.

Friends say that Clark, who was atDeutsche for 18 years, was considering what he might do next. Deutsche, which worked alongside RBS HoareGovett and Greenhill on the deal,

declined to comment yesterday.However, it is understood that his exit

is part of a programme, announcedlast October, to take 500 people out ofits investment bank globally as a con-sequence of the downturn in the mar-kets.

There is no doubt that the failure ofthe G4S bid would have been a disap-pointment for Clark. The advisers were criticised for being initially toopositive about investor feedback afterthey first put the deal to institutions.

The failure of the deal has led to G4Sputting the corporate broking man-date up to tender, with up to 10 banksfighting for the business. Deutsche,which has won more FTSE 100 broker-

ships than any other firm in the lasttwo years, has decided not to re-pitch.

Deutsche loses itskey G4S adviser

CAPITAL MARKETS

SEVERAL former Credit Suissetraders manipulated the books onmortgage-backed securities when theUS real estate market slumped in2007 and 2008, a former London-based trader at the investment bankadmitted in court yesterday.

The former trader, David Higgs,pleaded guilty in US District Court inNew York to a criminal charge of con-spiracy to commit falsification ofbooks and to commit wire fraud. Heis cooperating in a US governmentinvestigation on the writedowns ofsubprime mortgage derivatives at theheight of the financial crisis.

The investigation stems from$2.85bn (1.79bn) in writedowns thatCredit Suisse took on collateraliseddebt obligations in 2008. CreditSuisse blamed the losses on a groupof rogue traders and on a failure of

internal controls. Credit Suisse wasnot charged in the case. A spokesmanfor the firm declined to commentyesterday.

US says CreditSuisse tradersfalsified books

BANKING

Truett Tate is setto leave his job ashead of wholesaleat Lloyds.

Picture: CITY A.M.

MPs overturnwelfare reformmade by Lords

MEMBERS of Parliament last nightreinstated parts of the new welfare bill that had been defeated in theHouse of Lords.

The House of Commons voted infavour of the 26,000 a year benefitcap, including child benefit, despiteprotests last week from the upperhouse of parliament.

The government secured a majori-ty to overrule several amendmentsset out by the Lords, although ahandful of Liberal Democratsrebelled over plans to means-test cer-tain benefits including the employ-ment and support allowance.

The bill will now return to theHouse of Lords.

POLITICS

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News 5CITYA.M. 2 FEBRUARY 2012

HOUSE prices declined in Januaryand barely registered any growthover the last year, according to fig-ures out yesterday fromNationwide.

Prices fell 0.2 per cent last month,repeating Decembers fall and tak-ing the 12-month growth rate downfrom one per cent to 0.6 per cent.

Average prices now stand a162,228, from 161,211 in January2011 and 163,481 two years ago.

The report also showed low inter-est rates are boosting home afford-ability initial mortgage paymentshave fallen from 46 per cent of take

home pay in 2007 to 31 per centnow, their lowest level since 2003.

House prices fellagain in January,

Nationwide says

FACTORY output expanded strongly inthe US in January, according to figurespublished yesterday by the Institutefor Supply Management (ISM).

However, manufacturing outputdeclined in China and the Eurozone,according to data from Markit, thoughGerman production increased.

The ISM purchasing managersindex (PMI) for the US came in at 54.1 up from 53.1 in December and the30th consecutive month of expansion.

Economists believe the figure is con-sistent with GDP growth of close tothree per cent.

The new orders index hit 57.1, up

from 54.8, while the employmentmeasure slowed slightly from 54.8 to

54.3. Any figure above 50 representsgrowth.

Chinas manufacturing PMI rosefrom 48.7 to 48.8 according to Markit,although the official governmentmeasure registered slight growth at50.5.

Meanwhile the Eurozones PMI wasyesterday confirmed at 48.8, up from46.9 in December. Germany and Austria both registered growth inmanufacturing, with PMIs of 51 and51.8, while Italy and Spain continuedto contract sharply at 46.8 and 45.1.

With the Eurozone on the cusp of asevere recession, it might not be toolong before the global recovery fades,said Capital Economics Paul Dales.

As such, US growth probably wontbe as good as the ISM PMI suggests.

America boosts output

as China and Eurozone lagWORLD ECONOMY

CENTRAL governmentdepartments are suc-cessfully finding effi-ciency savings butthey have not paidenough attention to thereorganisation neededto sustainably cut costson a larger scale in com-ing years, the National Audit Office (NAO)warned in a report pub-lished today.

Spending fell by 2.3

per cent, or 7.9bn, inreal terms in 2010-11,

the NAO said, with effi-ciency savings and back-office cuts accountingfor much of the success.

However, theplanned real-terms cutsamount to a further 19per cent by 2014-15 forthe average depart-ment, and most have yet to develop a clearpicture of their futurestate, or a detailedplan.

A more strategic viewis needed from now on,

the NAO said depart-ments need to properly

consider how they canstill deliver services on amuch lower budget, forexample.

They must also takeinto account the budg-ets which are out-sourced and managedat arms length, some-times accounting forover 50 per cent of totalspending.

In particular, this isproblematic whendepartments do nottrack the link between

costs and outputs inexternal bodies, it said.

Efficiency drive isnot enough NAO

POLITICS

HOUSING

PUBLIC borrowing is likely to come inaround 2.9bn below the latest officialforecasts in 2011-12 and 9bn lower by2016-17, analysis published by theInstitute for Fiscal Studies (IFS) estimat-ed yesterday.

However, chancellor GeorgeOsborne should be wary of indulgingin a spending splurge in next monthsbudget spending would have to be inthe region of 20bn or more to addeven 0.1 or 0.2 per cent to GDP, andcould also risk destroying vital confi-dence in public finances, the respectedthink-tank warned.

The IFS also explained a long-termfiscal loosening is impossible becauseof the risk of a deeper Eurozone reces-sion or even break-up, and the impactof an aging population.

The IFS also worried that the govern-ment may lack the will or ability to

implement its proposed spending cuts.More than 9 of every 10 in

planned cuts are still to be made, saidIFS boss Paul Johnson.

IFS: A budgetgiveaway willrisk disaster

UK ECONOMY

MANUFACTURING output jumpedin January, taking the UK out of thestagnation experienced inDecember, purchasing managersindex (PMI) figures from Markitshowed yesterday.

Output rose, registering a PMI of52.1, up from 49.7 in December andhitting its highest level since May2011, with new orders at their high-est since March.

Any figure above 50 representsexpansion.

Manufacturers reported thatsome UK clients were increasinglywilling to spend in the month, andnew export orders also increased.

January saw the second consecu-

tive monthly rise in orders, withincreased demand from non-Eurozone countries, chiefly Brazil,China, the Middle East and the US.

The growth spurt saw small andmedium sized firms increase hir-ing, though larger manufacturersremain concerned over the ongoingEurozone crisis and the impact itmay have on sales.

The rise in this index, if con-firmed in other readings in thecoming weeks and months, hintsthat the UK may escape a renewedrecession, said Citi analyst MichaelSaunders.

UKs factoriesbounce backBY TIMWALLACE

UK ECONOMY

Belgian PM Elio Di Rupo faces an uphill struggle to fix economic woes

BELGIUM yesterday confirmed itsunenviable title as the first non-bailed-out Eurozone member to fallback into an official recession.

GDP in Belgium, the blocs sixthlargest economy, shrank by 0.2 percent in the fourth quarter of 2011,

following a quarterly contraction of0.1 per cent in the July to Septemberperiod.

Belgium is often cited as a harbin-

ger of things to come in Europe andmany countries in the region arealready sliding towards recession.

Meanwhile in bailed-out Greece,itself a victim of a contracting econo-my, Prime Minister Lucas Papademoswill seek backing from political col-leagues for more austerity -- a condi-tion expected by the IMF.

The PSI [private sector participa-tion] deal has been done, said a sen-ior Greek banker close to thenegotiations yesterday.

Belgian double dip sparksworries over euro growth

EUROZONE

ANALYSIS l UK Manufacturing PMI

%

Markit/CIPS Output Index (LHS)

ONS Manufacturing Production (RHS)

2000 2002 2004 2006 2008 2010 2012

65.0

60.0

55.0

50.0

45.0

40.0

35.0

30.0

4.0

2.0

0

-2.0

-4.0

-6.0

-8.0

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FACEBOOK yesterday submittedpapers to become a publicly tradedcompany later this year, putting anend in the week of its eighth anniver-sary to months of heated speculation.

In a rare insight into the mind ofthe usually tight-lipped social networkcreator, celebrity geek MarkZuckerberg included a letter in the fil-ing.

We often talk about inventions likethe printing press and the television

by simply making communicationmore efficient, they led to a completetransformation of many importantparts of society, he said.

Today, our society has reachedanother tipping point.

This point, in which Facebook willdebut as a public company and aim toraise at least $5bn, could value thecompany at $100bn and make billion-aires out of its early enablers.

Mark Zuckerberg, who abandonedhis Harvard degree after the success of

the website he founded in his collegedorm, owns 533.8m shares or 28.4 percent of Facebook valuing him com-fortably above the $20bn mark whenthe company floats.

He also holds the voting rights formore than 50 per cent of the company,meaning he will keep control.

The second biggest winner will beequity firm Accel Partners, led by ven-ture capitalist Jim Breyer, which piled$12.7m into the start-up in 2005 andowns an 11.4 per cent stake.

Other early investors including co-founders Eduardo Saverin and Dustin

Moskovitz, adviser Sean Parker, Paypalfounder Peter Thiel and Yuri MilnersDigital Sky Technologies stand torake in the billions.

Even rockstar Bono could see his potincrease substantially due to the$120m injected into Facebook in 2010through venture capital firmElevation Partners, in which he is alead investor.

Facebook chief operating officerSheryl Sandberg owns 1.9m shares,comprising 0.1 per cent of the stock.

Facebook IPOto give birthto billionairesBY LAUREN DAVIDSON

TECHNOLOGY

News6 CITYA.M. 2 FEBRUARY 2012

%

5.5

28.4

11.4

7.6

54

2.51.5

1

Mark Zuckerberg

Accel Partners

Digital Sky Technologies

Dustin Moskovitz

Eduardo Saverin

Sean Parker

Peter Thiel

Microsoft

Elevation Partners

Greylock Partners

Meritech Capital

Goldman Sachs Group

Jim Breyer

Chris Hughes

Private investors &Facebook employees

FACEBOOKS FRIENDS: CURRENT INVESTORS

From left:First companypresident SeanParker andco-foundersEduardo Saverinand DustinMoskovitzhold stakes inFacebook

Mark Zuckerberg the19-year old psychologycomputer science studat Harvard launches

Facemash, a site where fellowstudents can rate their classmates

2003

SEPTEMBER

Zuckerberg starts writingcode for Facebook andregisters the domain name

thefacebook.com. Six daysafter the site is launched,Harvard seniors Cameron WinklevoTyler Winklevoss (pictured), and DivNarendra accuse Zuckerberg of

stealingtheir ideafor asimilarwebsite

JA

Zuckerberg, DustinMoskovitz, and EduaSaverin form an officpartnership -Thefacebook.com LLC

APRIL

Napster co-founder SeanParker becomes president

of Facebook as it isincorporated into anew company. PayPalco-founder Peter Thiel (left)

invests $500m in return for seper cent of the company.

J

2004

20

20

Facebook expands in21 UK universities, pMexico and Puerto R2004

OCTOBER

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News 7CITYA.M. 2 FEBRUARY 2012

Morgan Stanley has landed the coveted

lead left spot in Facebooks long-awaitedinitial public offering and the deal is likelyto be managed by its co-head of globaltechnology investment banking, MichaelGrimes.

The lucky banker has been on goodterms with Sheryl Sandberg, Facebookschief operating officer and former Googleexecutive, since Morgan Stanley advisedthe search engine through its IPO in2004. He is said to have been courting

Zuckerberg and his team in anticipationof this expected float.

45-year old Grimes joined the peckingorder in the late 1980s, starting out atSalomon Brothers before moving to theFrank Quattrone-led technology invest-ment team at Morgan Stanley in 1995.

Grimes has worked on a vast range oftransactions worth over $100bn in value,

acting for clients such as HP, Intel,Microsoft, Netflix, Oracle and SanDisk.His portfolio includes Googles $1.9bn

IPO in 2004, completed by auction.Forbes added Grimes to its Midas List

of the top dealmakers in the technologysector in 2002, where he has repeatedlybeen ranked top investment banker.

Morgan Stanleys technology teamtopped the US IPO league tables in 2011,taking $2.2bn in fees from managing 11

per cent of tech IPOs, according toThomson Reuters.

It led LinkedIn, Groupon and Zyngathrough their keenly-watched publicofferings last year.

JP Morgan Chase, Goldman Sachs,Merrill Lynch, Allen & Co and Barclayswill act as assistant underwriters on theIPO. While rumour tipped Goldman

Sachs to be second in command, thebank which invited unwelcome contro-versy when it sold $1.5bn private sharesfor Facebook last year was relegated tothird place by JP Morgan.

An IPO of more than $1bn would usu-ally pay its underwriters four to five percent, but it is thought as little as one percent of Facebooks winnings could end upin the banks pockets.

Lauren Davidson

ADVISERS: MORGAN STANLEY, JP MORGAN, GOLDMAN SACHS ET AL

MICHAEL GRIMES

MORGAN STANLEY

ebook buysebook.com domain

me for $200,000 2005

AUGUST

.63m

oss

JANUARY

2006

06

EMBER

EBOOK: A TIMELINE OF THE SOCIAL NETWORK

2009

SEPTEMBERFacebook saysit has becomecash-flowpositive. Hits360m users

A leaked cash-flowstatement shows Facebookmade a net loss in 2005

2008

OCTOBERInternational headquartersset up in Dublin. Facebooknow has 145m active users

cebook settles two lawsuitsated to the Winklevoss twins,sulting in it acquiring theircial networking site ConnectU

1,253,326 shares ofcebook stock and $20m in cash

2011

JANUARY

2008

JUNEFacebook attracts$500m in investmentfor one per cent ofthe firm, valuing it at$50bn. Approaches845m users

2011

SEPTEMBER

eMarketer estimatesFacebooks 2011revenue at $4.27bn

Facebook is opened toeveryone over the age of 13that has an email address

Facebook files to raise$5bn in an initial publicoffering, valuing thefirm at up to $100bn 2012

FEBRUARY

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8/3/2019 Cityam 2012-02-02

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NOMURA revealed a surprise boostback into profit in its quarterly resultsyesterday, although analysts said thatmuch of the improvement was downto one-off gains.

The bank swung back into the blackto book earnings of 36.9bn (306m)for the quarter, versus a 42.3bn lossthe previous quarter.

That was on the back of whatappeared to be a dramatic improve-ment in its wholesale bank, a divisionthat is being partially dismantled as

Nomura retreats from its internation-al business.

Wholesale, which recently lost itschief Jesse Bhattal, formerly ofLehman Brothers, recorded a pre-taxprofit of 37.8bn for the quarter to 31December. That compares to a 73.1bn

loss during the previous three monthsand a 10.8bn profit in the equivalentperiod of 2010.

But the headline figure waspropped up by the one-off sale of theNomuras stake in Skylark, the

Japanese restaurant chain, which ana-lysts say brought in the lions share ofthe profits, and a paper accountinggain of 16bn due to the lower value ofthe banks debt. The lender did seesome bounceback in trading volumes,however, boosting revenues in fixedincome and equities trading.

Its retail and asset managementdivisions, the other main parts of the

business, both suffered a plunge inrevenues and profits. The retail bank

brought in quarterly pre-tax profits of10.1bn in the quarter, a fall of morethan half, while asset management

booked 4.2bn in profits, a fall of athird on the previous year.

One-off gainspush Nomuraback to profit

BANKS and other financial servicesfirms had to deal with 60 regulatorychanges each working day during2011, according to a report from

Thomson Reuters Governance, Risk &Compliance.

Regulators around the worldannounced 14,215 changes in 2011, a16 per cent increase from the 12,179announcements in 2010.

The report shows that the majorityof regulatory activity, 57 per cent,came from the US, while the UK andrest of Europe made up 22 per cent

and Asia accounted for 15 per cent. The volume of announcements,

which can include anything from aspeech which may signal the direc-tion of a new regulation to a final

binding rule, has grown continuouslysince 2008 when regulators issued8,704 changes.

The firm warn that the level ofannouncements will increase evenmore during 2012 as governmentstighten regulation and new direc-tives, including those related to theUS Dodd-Frank act, are implemented.

Scott McCleskey, head of financial

services regulation at the GRC unit,said: This growth in activity also hasan effect on the level of compliancespending leaving less to lend, invest,and do the other core activities which

will be necessary to revive the globaleconomy.

Michael Wainwright, partner atEversheds law firm, said: Businessesare keen to see the future course of

banking regulation resolved as soonas possible, so that the banks can get

back to business with a clear view ofthe ground rules under which they

will operate.

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Banks hit with 60 regulatorychanges a day during 2012

BY JULIET SAMUELBANKING

CORPORATE GOVERNANCE

News8 CITYA.M. 2 FEBRUARY 2012

John Towers was chairman of Phoenix, which bought Rover for 10 Picture: REUTERS

Probe censures Deloitteover Phoenix Four advice

THE UKs corporate governance reg-ulator has criticised accountancyfirm Deloittes advice during thecontroversial 2005 takeover of MGRover, saying the firms conduct

fell short of the standards expect-ed.

Deloitte and then-corporatefinance partner MaghsoudEinollahi acted as adviser to com-panies involved with MG Rover andthe so-called Phoenix Four directors.

The investigation will now bereferred to a tribunal.

We are disappointed that theAADB has taken the view that limit-ed aspects of our advisory workrelating to two transactions in 2001-02 falls short of acceptable stan-

dards, said Deloitte in a statement.We do not agree with the AADB

and are confident that when all theevidence is considered, the tribunal

will conclude that there is no justifi-cation for criticism of either Deloitteor our former partner Mr Einollahi.

REGULATION

ABSA Group, the South Africanlender majority owned by Barclays,said yesterday its full-year earningslikely rose by as much as 22 per cent.

Absa, which is due to report resultson 10 February, said in a statement itexpected to report an increase of

between 18 and 22 per cent in dilutedheadline earnings per share for the

year to end-December.That compares to an average fore-

cast of a 19 per cent increase in a pollof 13 analysts by Thomson Reuters.

Headline earnings per share,which excludes certain items, is themain measure of profit in South

Africa.The bank did not give a reason for

the expected rise in profit. It reporteda 19 per cent increase in first-halfearnings in August, as a drop in bad

debts helped lift its mainstay retailunit.

The bank has focused on reining incosts and boosting revenue fromtransactions as demand for creditremains slack in Africas largest econ-omy.

Barclays Absasees earningsrise up to 22pc

BANKING

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DAVID HUGHES | LAING OROURKE

I think its the right thing to do. He caused the UK economy such a lotof damage that its worth it to make a point. He wasnt solelyresponsible for the collapse of RBS but he was very instrumental.

ALEX IGEL | EMPOWERED SYSTEMS

Absolutely. Im a passionate believer in ethical and socially awarecapitalism. If he had managed things better then there would havebeen checks and balance against the collapse happening.

DANIEL PETTICAN | B OF A MERRILL LYNCH

Yes. He took an enormous amount of credit for what he claimed tohave done and he deceived the public and the shareholders. Onnumerous occasions he claimed there was no trouble in the US.

* These views are those of the individuals below and not necessarily those of their company

CITY VIEWS: SHOULD FRED GOODWIN HAVELOST HIS KNIGHTHOOD? Interviews by James Waterson

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SHARES in broker ICAP jumped7.9 per cent to 362p yesterday despite the firm announcing joblosses and reduced annual profitexpectations.

The unusual situation occurredafter the worlds largest interdeal-er agent beat gloomy analyst pre-dictions that the situation wouldbe even worse.

Yesterday ICAP announced thatprofit for the year ending inMarch should be toward theupper end of the 336m-358mrange. The figures are still sub-stantially down on November2011 predictions of 358m-390mprofit.

Reduced trading volumes dueto the Eurozone crisis and areduction in market liquidityhave hit the firm, resulting in aseven per cent drop in trading vol-ume during the final threemonths of 2011 to $740bn(466bn).

Meanwhile electronic trading volumes during January 2012dropped 19 per cent on the samemonth last year.

Michael Spencer, group chiefexecutive of ICAP, said: Likeeveryone else we saw a significantreduction in risk appetite inNovember and December. InJanuary we saw encouraging signsof activity starting to return,albeit cautiously in some mar-kets.

The firm used the interim man-agement statement to announcethat it had reduced expenditure by 20m during the currentfinancial year, mainly by cutting jobs in areas where profits arefalling but that it would continueto invest in areas such as financialfutures and commodities.

ICAP profits sinkbut shares surgeBY JAMESWATERSON

BROKERS

News10 CITYA.M. 2 FEBRUARY 2012

CAN ICAP BOOST ITS PROFITABILITY IN 2012? By JAMES WATERSON

NESE GUNER | CITI

As we expected, ICAPannounced that it has taken action toreduce its cost base and been realigningthe biz by reducing headcount in areas oflowered profitability. The cost base hasalready been reduced by a net 20m (~1.5per cent of underlying cost base) and wethink there is room for more costcuts.

PHILIP MIDDLETON |BOA MERRILL LYNCH

The company is displaying ashareholder-friendly attitude to cost man-age alongside its traditional growth orienta-tion. At current levels, ICAP is simply toocheap, unless you instead believe that thecapital markets have suffered major struc-tural damage recently. This is definitely notour view, and so we reaffirm our Buyon ICAP.

JAMES HAMILTON | NUMIS

Further cost saving could help and are likely next year. The immediate net 20m benefit is a mixtureof reduced staff numbers (the Brazilian redundancies was announced last year) and lower bonus payments

opposed to just redundancies.

ANALYSIS l ICAP PLC

p

26 Jan 27 Jan 30 Jan 31 Jan 1 Feb

365

360

355

350

345

335

340

362.001 Feb

London office take-up fallsbut tech firm demand soars

TAKE-UP of central Londonoffices fell by 27 per cent in 2011compared to the previous year,as the global economic slow-down continued to take its toll,according to research by KnightFrank.

The property consultancy saidtake-up fell to 10.7m square feetlast year.

However, this coincided with afall in supply and doubling ofdemand from the technologysector, providing some reasonfor confidence in the long-termoutlook.

Companies including Apple,Expedia, Facebook and Grouponsigned deals for 1.3m sq ft, up

from 640,000 sq ft the previous year, despite a slowdown indemand from other industries,

particularly finance.Knight Frank said that rising

technology firm demand was aLondon-wide phenomenonand not restricted to theShoreditch area coined as theSilicon roundabout.

However, the supply of centralLondon offices continued to fallby 1.5m sq ft in 2011 to 16.9m sqft with supply having peaked in2009 at 23m sq ft.

Tim Robinson, leasing part-ner, said the leasing market hadfundamentally changed andthat the reduction in pace in thesector is like comparing a 20:20cricket to a test match cricket: Itis a slower game with the oddburst of excitement.

He added: If demand is no better than last year, I expect

supply to continue to fall in 2012and 2013.

Knight Franks quarterly

report also revealed that a thirdof all of the 9.1bn of centralLondon office investments last year were carried out by first-time buyers as a new worldorder of international operatorscontinued to flock the market.

Stephen Clifton, City invest-ment partner, said 60 per cent oflast years acquisitions hadinvolved overseas equity, withthe hottest money currentlycoming from Malaysia, Korea,Hong Kong and Russia.

Up until now the overseasmoney has targeted trophyassets, but I expect them todiversify their portfolios thisyear taking on more risk, eitherbuying sites or joint venturingwith UK developers, he said.

Office investment transac-

tions fell to 9.1bn compared to10.4bn in 2010, in part due to arelative lack of supply.

BYKASMIRA JEFFORD

RETAIL

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News 11CITYA.M. 2 FEBRUARY 2012

Radicals admit plan to blowup LSE and Mayors offices

FOUR terrorists who claimed they were inspired by Al-Qaeda yester-day pleaded guilty to planning

bomb attacks targeting the LondonStock Exchange, as well as otherCity landmarks.

Mohammed Chowdhury, ShahRahman, Gurukanth Desai and

Abdul Miah, who were arrested inDecember 2010, all admitted yester-day to engaging in conduct inpreparation for acts of terrorism.

The men, all British citizensfrom London and Cardiff, hadplanned to send nail bombsto several prominent London

buildings listing the LondonStock Exchange, the USembassy and Mayor ofLondon Boris Johnsons

work address as possi-ble targets.

But an undercoverpolice operationcaught the men

before the attackscould go ahead.

The four men admittedtheir guilt under a specialarrangement that allowsdefendants to be told theirpotential sentence if theyplead on the night before

the trial is due tobegin.

Five othermen pleadedguilty to othercharges relatedto terrorism. Allnine will be sen-

tenced next week.

BY ELIZABETH FOURNIER

CRIME

THE GLOOM in investment manage-ment deepened yesterday whenBrewin Dolphin reported a slump incommissions, as clients stayed onthe sidelines amid volatile markets.

Brewin said first quarter commis-sion income fell 24.4 per cent year-on-year to 17.5m.

The firm said the figure had con-tinued to fall into January but otherincome has held up.

The update comes days afterCharles Stanley blamed the poortrading environment, euro uncer-

tainty and depressed UK economy

for a drop in revenue of nearly asixth to 27.3m.

Yesterday Brewin said total fundsunder management were up 3.8 percent to 24.9bn, with recoveringstock markets helping offset a100m net outflow of funds.

Analyst David McCann at Numissaid: This is the same trend thatCharles Stanley reported last week:it appears private client activity lev-els are well down.

Brewin said discretionary fundssaw a 100m net inflow thoughadvisory funds shed 200m duringthe quarter.

First quarter financial planning

and trail income was up 26.6 per

cent and investment managementfees increased 15.8 per cent.

It caps a major week for Brewin, whose advisory and broking busi-ness started a new life yesterdayunder the ownership of Spains N+1.

BY PETER EDWARDS

ASSET MANAGEMENT

Investment

9.1bn of central London office

investments last year, a 12 per

cent fall on 2010 (10.4bn)

First-time buyers accounted for a

third of deals

Overseas investors accounted for

60% of turnover

Hottest money:

Malaysia, Korea,

Hong Kong and

Russia.

ANALYSIS l Brewin Dolphin Holdings PLC

p

26 Jan 27 Jan 30 Jan 31 Jan 1 Feb

154

152

150

148

146

152.301 Feb

Take-up fell by 27 per

cent to 10.7m sq ft

last year

Take-up of centralLondon offices from

IT and telecoms firms

more than doubled to

1.3m sq ft. Accounted

for 20 per cent of all

transactions.

Availability of central

London offices fell by

by 1.5m sq ft to 16.9m

sq ft. Vacancy rate of

7.3 per cent compared

to 8.1 per cent in2010.

Central LondonLettings market

Brewin fees drop as

clients sit on hands

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HOME Retail Group has named for-mer Best Buy executive John Waldenas the new boss of its strugglingArgos business.

He takes over as managing directorof the chain next month and willreport to group chief executive TerryDuddy, who had taken on the roletemporarily after the departure ofSara Weller last April.

We look forward to John bringinga valuable, fresh perspective to thefuture development of Argos, saidDuddy yesterday.

Argos, which reported a 8.8 percent slump in sales over theChristmas trading period, is facingfierce competition from supermar-kets and internet players and hasbeen particularly hit as low-incomecustomers struggle with severe budg-et squeezes.

Duddy warned that the group, which also owns Homebase, wouldhave to cut its final dividend and saidthat it expects profits to be 60 percent lower this year at around100m.

He also said HRG would close itsfour-store UK homewares trial

HomeStore&More at a cost of 10mand pledged to scale back Argos 750-strong estate as leases come up forrenewal over the next five years.

The group has come under pres-sure from analysts to close more ofits stores, but Duddy has rejected thisplan, arguing that the wider econo-my was to blame rather than hisstrategy for the company.

With 40 per cent of Argos salesnow made over the internet and 10per cent of internet sales made viasmartphones, Duddys strategy is toinvest in a variety of purchasingoptions for customers.

Shares in Home Retail Group,which have lost over half their valuein the last year, closed down 1.3 percent last night at 106p.

PEACOCKS administrator KPMG hasreceived six bids to rescue the groupout of administration.

The first round of bidding closedon Monday, and it is understood suit-ors for the Cardiff-based business willnow be asked to provide furtherdetails ahead of a round of finaloffers next Monday.

Private equity firms KKR andOpCapita were last week still in the

running to buy the company, whiletrade buyer Edinburgh Woollen Millwas also thought to be interested inbuying parts or all of the chain. SunEuropean Partners, which boughtPeacocks sister chain Bonmarch ear-lier this month, has also been linkedto the company.

As many as 50 bidders were said tohave originally expressed an interestin the beleaguered retailer, whichowns 611 stores and employs 9,000

people either as a going concern orfor parts of its estate and its stock.

The chain collapsed earlier thismonth after rescue plans, includinginjecting fresh equity and a debt-for-equity swap, ultimately failed. Thecompany has borrowings of morethan 750m while it made sales of720m in the year to April 2010.

A total of 249 staff, almost half ofPeacocks head office workforce inCardiff, have been made redundant.However, strong interest in the firmhas raised hopes that KPMG may yet

find a buyer to rescue the remainingjobs.

Peacocks administrator receives sixbids to rescue the collapsed retailer

BMI has signed a term sheet to sell itsregional offshoot BMI Baby to a mys-tery UK company.

BMI said the firms had mutuallyagreed to keep the potential buyerand value of the sale under wraps.

The deal has come as a surprise torival airlines, including German out-fit INTRO Aviation, which said it wasclose to a deal for BMI Baby last

month but did not return requestsfor comment yesterday.

BMI said in a statement that thenew potential owner would continueto use the brand name for an interimperiod and run flights during thesummer as planned.

BMI, which is owned by Lufthansabut is being sold to British Airlinesparent IAG, is looking to sell its BMIBaby and BMI Regional units as partof its takeover.

A deal would effectively save theBMI Baby brand, as IAG had indicated

that it would close the unit ifLufthansa could not find a buyer.

Mystery firm signs termsheet to buy BMI BabyTRANSPORT

IMPERIAL TOBACCO said yesterday itscigarette volumes fell seven per cent inthe final quarter of 2011 after saleswere hit by a tough Spanish market,Syrian sanctions and destocking inUkraine and the US.

The worlds fourth-biggest cigarettemaker, whose brands include Davidoffand Gauloises, said sales were down byone per cent in the period but rosethree per cent when stripping out theimpact of those four markets.

The Bristol-based group, which sellsover 340bn cigarettes annually, has

suffered in Spain from a bruising pricewar, a ban on smoking in public placesand rising unemployment.

A ceasefire was called late last year but Imperials third most-profitablemarket after Britain and Germany isstill struggling from a decline ofaround 15 per cent per year as theSpanish economy looks to be headingfor recession.

Sales have also been hurt by UnitedNations sanctions on Syria.

Imperial Tobacco takingsfall as Spain woes persistRETAIL

SUPERMARKET giant Tesco hasmoved Bob Robbins from his role asUK chief operating officer three weeks after it was revealed he soldstock ahead of a profit warning,according to an internal announce-ment yesterday.

The announcement said Robbins,who has held the UK COO role sinceMarch 2011, will work directly forgroup chief executive Philip Clarkeon a number of initiatives.

Bob will work directly for me in anew role that will allow the executiveteam to increase its focus on thestrategic priorities we have estab-lished whilst strengthening furtherthe support we provide to the UKbusiness, said Clarke.

Robbins sold 50,000 shares at404.51p apiece on 4 January, nettingaround 202,000, according to a fil-ing published on 5 January.

That was eight days before Tescoreported its biggest drop in underly-ing British sales for decades andissued a profit warning that sent itsshares plunging.

Tesco said it and Robbins had oper-ated within the rules, though the sale was criticised by corporate gover-nance watchdogs.

A Tesco spokesman said Robbinsmove was about using his skills to thebest advantage of the whole businessand was entirely unrelated to hisshare sale.

Tesco movesUK exec who

sold sharesRETAIL

Home Retail

hires Waldenas Argos bossBYKASMIRA JEFFORD

RETAIL

BYKASMIRA JEFFORD

RETAIL

News12 CITYA.M. 2 FEBRUARY 2012

Black market sales are the main culpritPAIN in Spain. That is the cause oflower sales at Imperial Tobacco. The Spaniards, hurt by austerityand high unemployment, havedecided to kick the cancer sticks. The quintessential cafe culture

moment a strong black coffeeand cigarette is a thing of thepast. Or is it? We doubt it some-how.

While it is true that sales inSpain have fallen by double digits,that is partly explained by a bitterprice war. First Philip Morris cutthe price of its leading SpanishL&M brand to 3.30 to compete with British American Tobaccos

Pall Malls. Imperial Tobaccosbiggest label Fortuna looked expen-sive by comparison at 3.40, so itcut its own prices too.

Imperial was right to cut pricesto protect its market share. It cur-

rently has 34 per cent of the mar-ket but Philip Morris, on 32 percent, is snapping at its heels.

Volumes have also declined,which can be explained, in part, bythe smoking ban and changingattitudes towards smoking. But the black market for cigarettes inSpain is probably more responsi- ble. Spaniards arent necessarilykicking the habit just feeding

their addictions more cheaply.Spain is currently losing as

much as 6bn a year in VAT andduty due to contraband cigarettes,and analysts expect new PrimeMinister Mariano Rajoy to launch a

crackdown in the near future. That would allow the tobaccofirms to call off the price war;Imperials profits and sales wouldsomewhat recover. With that inmind, we still think the shares areworth a puff.

BOTTOMLINEAnalysis by David Crow

ANALYSIS l Home Retail Group PLC

p

26 Jan 27 Jan 30 Jan 31 Jan 1 Feb

108

106

104

102

100

98

106.001 Feb

ARGOS incoming chief executiveJohn Walden is a little known figureon this side of the Atlantic, but hisextensive multi-channel experiencein the US has caught the attention ofexecutives at Home Retail Group.

Walden, 52, kicked-off his retailcareer in the 1990s as chief operat-ing officer of online supermarketpioneer Peabody before joining BestBuy, the worlds largest electricalsretailer in 1999, where he ran thecompanys online division.

After eight years with the firm,Walden jumped ship to US retailerSears, where he was appointedchief customer officer, in charge ofthe internet, catalogue and homeservices divisions.

He spent less than a year withthe company and is said to havereceived a $2m pay-off.

Walden a law graduate fromIllinois Institute of Technology whoalso holds a masters in managementfrom the Kellogg School ofManagement was most recentlythe chief executive of renewabletechnologies firm Activeion CleanTechnologies.

Despite his wealth ofonline experience, some inthe City have ques-tioned whether Walden is theright man to tack-le Argos under-

performing high street stores and itscostly catalogue business.

I would still have some questionmarks over his experience and themandate that comes with the job,Liberum Capital analyst SimonIrwin said, pointing to Waldens lackof knowledge in the UK retail orproperty market.

The biggest concern is whetherthe mandate he has been given isone of continuity or whether he willshake things up, he added.

Home Retails chief executive Terry Duddy recently defended

Argos strategyand large

store portfo-lio, butmany Citye x p e r t s believe it will needto gothroughr a d i c a lchanges

to survive.

Shop group pins hopeson US internet expert

BYKASMIRA JEFFORD

RETAIL

JOHN WALDEN

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REFORM ISTHE STORY

OF BANKINGBESTSELLEREVER WONDERED how former BP andLehman Brothers spinner AndrewGowers ended up as a strategic consult-ant to the Association for FinancialMarkets in Europe?

The appointment of the one-time FTeditor last November was a seamlesstransition, says AFMEs CEO Simon Lewis,from Gowers editing the bodys collectionof essays on reforming Europes financialmarkets, as published yesterday.

The book contains some salient sug-gestions from AFMEs independent con-tributors, who were set the examquestion: How much has the capitalmarkets industry changed and how

much further does it need to go?Given the current headlines, The

Capitalistskipped straight to the section onthe impact of regulation on remunera-tion, where PwC reward expert TomGosling argues its not all about the pay.Changes to compensation are important,he writes. But for the outcome to be suc-cessful, compensation changes must be

viewed in the context of a firms widerenterprise risk-management approach.

Food for thought for the investmentbankers invited to last nights launch at

Kempinska retained the intellectualproperty, however, and has rebuilt thechain into a 1.8m turnover business, asof the year to October 2011, with ambi-tions to expand beyond its 11 venues intomedia, management and more clubs.

We are always looking for investment,says Kempinska, as she beds in onGoldmans doorstep.

GOING FOR A SONG TOM CROSS BROWN is very excited.Why? Because Stowe Opera, as supported by the former Lazard and ABN Amro

banker, is moving for its annual festivalthis July to Buckinghamshires WinslowHall, the Grade 1-listed mansion designed

by Sir Christopher Wren (above). The performance is by invitation of

restaurateur Chris Gilmour, who saw offreported competition from Tony andCherie Blair to buy the estate in 2007.

This years opera will be The Marriageof Figaro, and bankers on Cross Brownscircular have been offered a 5 discount ifthey book before the end of February.Every little helps.

the Royal College of Surgeons MichaelCole-Fontayn of Bank of New YorkMellon, Jose-Luis Guerrero of HSBC andCostas Michaelides of Credit Suisse allleft clutching a free copy.

BIRLEY BLACKOUTTHE CLOCK is ticking for Robin Birley ifhis 20m townhouse on Hertford Streetis to open by Easter (The Capitalist 18

January). And matters wont have beenhelped by the dramatic power outage inMayfair yesterday afternoon, whichforced Birleys contractors LaingORourke to down tools early.

The Shepherd Market blackout alsointerrupted the work of one lividfinance boss on Trebeck Street, and the

lunch of the hedge funders dining inthe packed restaurant Sofra.

It should be noted, at this point, thatthe lights went out at 4.05pm.

LAUGHING MATTEREVERYONE in the City could do with somehumour, says Maria Kempinska, theowner of the Jongleurs comedy chain,

who has strategically located her firstSquare Mile venue around the cornerfrom Goldman Sachs on Bride Lane.

She should know this is the business-woman who started her company in 1983with a 300 overdraft and a bicycle as col-lateral, only to see its owner Regent Inns,

which bought Jongleurs in 2000, collapseinto pre-pack administration in 2009.

Left to right: AFMEcontributors PaulTucker, deputy gover-nor of the Bank of England; WPP CEOSir Martin Sorrell;

and the books editorAndrew Gowers

Pictures: GETTY / REX

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Discover and Build Your Personal Brand4th Annual Nordic Career ForumLondon 15 March 2012 Radisson BLU Portman Hotel

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HARRIET DENNYSGot A Story? Emailthecapitalist@cityam.comFollow The Capitaliston Twitter: @dennysharriet

The CapitalistCITYA.M. 2 FEBRUARY 2012

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WELSH-born Sir Howard Stringer is tostep down as president and chiefexecutive of Sony after a fifteen yearrun at the Japanese electronics com-pany, to be replaced by Kazuo Hirai.

Hirai, aged 51 and currently execu-tive deputy president, will takeStringers seat on 1 April.

Stringer a rare foreign chief exec-utive for a leading Japanese compa-ny will remain as chairman of SonyCorp, and will become chairman ofthe board of directors in June whenYotaro Kobayashi retires.

This comes as Sony todayannounces its third quarter earnings,which are expected to leave the com-pany in line for a fourth consecutiveannual net loss a first for Sony in its54 years as a publicly listed compa-ny due to its struggling TV division.

Sony has suffered due to the partic-ularly strong yen, the earthquake inJapan and the floods in Thailand.

It has also failed to match rivalsApple and Samsung as they hurtle tomarket domination.

Hirai recognised the challengeahead of him, saying: The path wemust take is clear: to drive the growth

of our core electronics businesses primarily digital imaging, smartmobile and game; to turn around thetelevision business; and to acceleratethe innovation that enables us to cre-ate new business domains.

Sir Howard called Hirai, whonotably brought the PlayStation divi-sion back into profit after four yearsin the red, one of a new generationof leaders.

A former journalist then presidentof broadcaster CBS, Emmy Awardwinner Stringer joined Sony in 1997as president of its US operationalunit.

Sony shares, which have lost twothirds of their value since Stringertook the helm in mid-2005, closeddown two per cent at 1,364 yen.

FIAT-OWNED Chrysler Group posted a44 per cent rise in US car sales inJanuary, led by gains for its Jeep brand,while its larger domestic rival GeneralMotors lost ground in a monthmarked by modest growth.

Chryslers sales blew past some ana-lysts expectations of a 35 per centincrease, demonstrating the unlikely

comeback of the smallest US carmakernearly three years after its taxpayer-

funded bankruptcy restructuring.GM, the largest US carmaker, report-

ed a six per cent drop in US auto salesin January, while Ford Motor postedsales that were seven per cent higher,spurred by a 60 per cent jump in salesof the Focus small car.

So far, the annualised sales rate forJanuary is tracking at 13.7m vehicles, JP Morgan analyst Himanshu Patel wrote in a research note. Patel andother analysts had predicted a 13.5m

sales rate for the month.GM was expected to show a decline

from last January, when the automak-er offered consumer incentives to jump-start sales. GM sales totalled167,962 vehicles in January. Some ana-lysts had expected GM to report a nineper cent drop.

Ford, the second biggest US carmak-er, sold 136,710 vehicles in January.

VW and Nissan Motor reportedgains as well. VW sales rose 48 per centto 27,209 vehicles, buoyed by the intro-duction of its Passat sedan. Nissan

sales in the US rose 10.4 per cent to79,313.

Mixed January for US car retailersas Chrysler and Ford beat forecasts

BRITAIN should consider all optionsfor increasing capacity at LondonHeathrow airport, including a thirdrunway and allowing planes to landand take-off simultaneously on its tworunways, according to business groupLondon First.

A report published yesterday by thecapitals connectivity commission --formed by London First -- said all viableoptions for meeting the UKs long-term need for further capacity, includ-

ing a new airport, should be consid-ered.

However, it criticised the govern-ment for ruling out a third runway atHeathrow for political reasons.

The commission led by PeteRobinson, chairman of law firmBerwin Leighton Paisner, said a newhub airport was the type of long-terminfrastructure planning London need-ed to stay competitive. But it warnedthat a new airport could take up to 30years to deliver and would be unableto meet the need for new hub capacity.

Business group calls formore Heathrow capacity

TRANSPORT

AIRPORT operator BAA must sellLondon Stansted airport, after losing

an appeal against an earlier order bythe Competition Commission.But BAA has not ruled out appeal-

ing further, in the latest twist in athree-year fight between the firm andthe Competition Commission over itsdominance of the UK airport market.

We are disappointed by the deci-sion of the Competition AppealTribunal which we will now carefullyconsider before making any furtherstatements, BAA said.

Last year the commission orderedBAA to sell one of its Scottish airportsbefore it disposes of Stansted.

BAA, owned by Spanish infrastruc-ture group Ferrovial, put Edinburgh

airport up for sale in October, butasked for a judicial review of the latestruling on Stansted.

Whilst BAA is of course entitled toexplore the available avenues for chal-lenge, it is now surely time for BAA toaccept our findings and proceed withthe necessary divestments, said LauraCarstensen, a member of the originalinquiry.

Ryanair, which operates most of itsLondon flights out of Stansted and

has long lobbied for a break-up ofBAAs airports, welcomed the decisionand called for the urgent sale of thesite.

BAA loses Stansted appealBYMARION DAKERS

TRANSPORT

Stringer set

to step downas Sony chiefBY LAUREN DAVIDSON

TECHNOLOGY

BYHARRY BANKS

AUTOMOTIVE

News16 CITYA.M. 2 FEBRUARY 2012

NEWS | IN BRIEF

De La Rue names new chairmanBanknote printer De La Rue has namedPhilip Rogerson as its next chairman,adding to the chairmanships he alreadyholds at Aggreko, Carillion and Bunzl.Rogerson will join the De La Rue board asa non-executive next month, and move tothe chairman role when incumbentNicholas Brookes retires at the AGM inJuly. Rogerson will step down from hisrole at Aggreko in April.

American Airlines takes axe to jobsAMR Corp, the bankrupt parent ofAmerican Airlines, may slash between12,000 and 14,000 jobs as part of abankruptcy cost-cutting strategy thecarrier says is necessary to compete

with rivals. Sources familiar withAmerican's plan said the job cuts

detailed by executives in a meeting withlabour groups yesterday would be partof an overall effort to reduce operatingexpenses by more than $2bn (1.27bn)annually.

Buyout houses circle IcelandTwo buyout houses have placed bids forfrozen food retailer Iceland Foods, peo-ple familiar with the matter said yester-day, in an auction that the vendors hopewill value the business at around 1.5bn.The bids from BC Partners and BainCapital are "aggressive" the people said,although they did not indicate whethersupermarket chain Wm Morrison wasstill in the process. Iceland chief execu-tive Malcolm Walker has 42 days to

match the highest bid under the share-holder agreement.

ANALYSIS l Ferrovial SA

26 Jan 27 Jan 30 Jan 31 Jan 1 Feb

9.30

9.20

9.10

9.00

8.90

9.321 Feb

ANALYSIS l Sony Corp

26 Jan 27 Jan 30 Jan 31 Jan 1 Feb

1,450

1,425

1,400

1,375

1,3641 Feb

NASDAQ OMX Groups core profittopped analysts expectations for thefourth quarter yesterday, boosted bya rise in revenue from market dataand technology, which helped offseta soft trading environment.

Stock market volumes declinedfrom the elevated levels of the priorquarter as volatility eased andinvestors moved to the sidelines.

But the parent of the Nasdaq stockmarket has diversified its revenuesthrough a number of small bolt-onacquisitions over the years, and hasreaped the benefits.

Higher demand for its proprietarydata services helped drive the com-panys market data revenue up 10per cent, while market technologyrevenue rose four per cent from ayear earlier due to recently deliveredprojects.

Transaction fees, meanwhilslipped one per cent from a year ear-lier and were down 13 per cent fromthe prior quarter.

Nasdaq, which runs US and Nordicmarkets, earned $82m (51.8m), or45 cents per diluted share, in thefourth quarter, down from $137m,or 69 cents per share, a year ago.

Excluding one-time items associat-ed with debt refinancing and mergerand strategic initiatives, it earned 63cents a share, compared to 55 centsin the year-prior quarter.

Revenue rose six per cent to$422m, versus expectations of$417.16m.

Nasdaq OMXcore profit topsexpectations

CAPITAL MARKETS

Stringer, pictured here with Rupert Murdoch, joined Sony in 1997 Picture: GETTY

Sir Howard, pictured with Will Smith, will step down as Sony chief Picture: GETTY

Sir Howard Stringer with David Frost (left) and Kunitake Ando (right) Picture: GETTY

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KAZAKH mining group ENRC yester-day revealed that output from its keyferroalloys and iron ore divisions wasbadly dented in the fourth quarter of2011 by the need for emergencyrepairs.

The London listed miner said pro-duction of ferroalloys dropped in thequarter, with the division suffering asa furnace malfunctioned.

Saleable output dived by 10 percent to 360,000 tonnes in the fourth

quarter, and 2011 production overallwas down 2.9 per cent.

ENRC said the 82,500-tonne fur-nace would be operating marginallybelow full capacity in 2012 but wouldnot significantly affect full year out-put numbers.

The miner was also hit by crusherand railway issues in its iron ore divi-sion. Primary concentrate productionwas down 3.8 per cent but flat overthe full year, while saleable produc-tion fell 6.6 per cent in the quarter

and five per cent over the year to 16mtonnes.

Chief executive Felix Vulis said:Although numbers for the year [are]slightly less than we anticipated, weare back to full capacity and demandis there.

Vulis added he did not expect thedip in output to affect the groupsfinancial results, due to be releasednext month.

ENRCs production outside its corecommodities fared better, with ENRCreporting higher copper, cobalt andaluminium production levels.

ENRC outputhit by repairsto equipment JOHNSON Matthey, the worldlargest supplier of catalytic convertersfor vehicles, expects second-half prof-its to be slightly ahead of the first,

after a third quarter boosted byChinese sales and North Americantruck sales.

The British speciality chemicalscompany said yesterday underlyingprofit before tax rose 34 per cent to104m in the quarter, in line withanalysts expectations despite marketvolatility.

That was on the back of a 22 per-cent rise in sales, as the group benefit-ed from increased market share inChina after winning business from alocal producer for its pollution-curb-ing converters, and a jump in NorthAmerican truck production.

The news sent its shares up 5.2 per

cent yesterday, making JohnsonMatthey a top gainer in a FTSE 100, asinvestors welcomed a beat against theimplied consensus for full-year earn-ings.

The group said the economic envi-ronment in Europe, which accountsfor more than a third of its sales,remained challenging, but demandfor its products, particularly in North America, was holding up well. Thecompanys environmental technolo-gies division also saw a sales lift.

COPPER miner Antofagasta aims toincrease production by more thannine per cent this year, anticipatingslower output growth after an almost23 per cent jump in 2011 when theminer topped its targeted range,thanks to the ramp up of itsEsperanza mine.

The FTSE 100-listed miner said cop-per production in the fourth quarter

rose more than 13 per cent to 187,000tonnes, making it the strongest threemonths of the year, and helping 2011output rise to 640,500 tonnes, justabove its target.

It is aiming for 2012 copper produc-tion of 700,000 tonnes, below someanalysts expectations.

Copper production has dropped atmany of the industrys largest pro-ducers over 2011, when mines werehit by freak weather, strikes andlower grades as projects mature.

China and UShelp JohnsonMatthey sales

Antofagasta sees copperproduction jump by 13pc

Chief executive Marcelo Awad is fighting to keep production levels up Picture: REUTERS

BY JOHN DUNNE

MINING

AUTOMOTIVE

News18 CITYA.M. 2 FEBRUARY 2012

BYHARRY BANKSMINING

ANALYSIS l Eurasian Natural Resources Corp PLC

p

26 Jan 27 Jan 30 Jan 31 Jan 1 Feb

750

740

730

720

710

700

690

717.501 Feb

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Book a table to receive free cocktails & giveaways.GLOBAL miner BHP Billiton yester-day announced that it had offloadedits stake in a South African titaniumoperation to rival Rio Tinto.

The move marks the end of BHPsparticipation in the titanium miner-als industry.

BHP said it had exercised anoption to sell its 37 per cent stake inRichard Bay Minerals to Rio Tinto,with the final cost to be agreed by apreviously agreed valuation process.

Rios stake in Richard Bay will riseto 74 per cent, Rio said in a separatestatement.

Chief executive Harry Kenyon-Slane said: Doubling our stake inthe business solidifies our positionat a time when the long-term out-

look is strong and demand for high-er grade titanium dioxide isgrowing, driven by urbanisation and

rising environmental standards.Separately BHP Billiton said it will

cut staff at its Nickel West unit inAustralia in response to weak metalsprices and the negative impact of astrong Australian dollar.

BHP plans to reduce mine produc-tion by 30 per cent at its Mt Keithnickel mine in Western Australiastate for about a year and axe around150 jobs, a company spokeswomansaid.

BHP Billitonsells titaniumstake to RioBY JOHN DUNNE

MINING

UNITED Utilities, Britains largestlisted water utility, said yesterday it was on track to deliver a goodunderlying performance for the fullyear.

In the first half of 2011-12, rev-enue increased by around four percent, compared with the first half oflast year, and this trend is continu-

ing, the company said.United Utilities added that infra-structure expenditure for the sec-ond-half would be higher than thefirst-half, in line with its previousexpectations.

In November, the company report-ed a dip in first-half profit due toincreased capital spending.

On Tuesday, industry regulatorOfwat said the average householdwater and sewerage bill in England

and Wales will rise by 5.7 per cent in2012 as water companies gear up toinvest as much as 22bn over thenext five years.

In London, bills are set to surge by6.7 per cent.

United Utilities said it was oncourse to meet its 2011-12 regulatoryleakage target, and added waterresource levels were robust, withreservoir stocks in excess of 90 percent.

United Utilities is on track forfull year with rising revenuesBYHARRY BANKSRESOURCES

News 19CITYA.M. 2 FEBRUARY 2012

NEWS | IN BRIEF

Range gets boost in TrinidadRange Resources yesterday raisedproven estimates for its oil fields inTrinidad by 490 per cent to 12.8m bar-rels, following engineering studies onthe assets. Range, which is dual listed inAustralia and the UK, said work hasbegun on spudding a third well at itsTexas North Chapman project, and thatits Beach Marcelle field has significantvolumes of crude remaining. It expectsto produce 1m to 1.5m barrels per yearusing a water flood programme at thesite. The firms interests in oil fields pro-

duced 51,486 barrels in the threemonths to December.

Borders starts Falklands drillingBorders and Southern yesterday said ithad started drilling at its Darwin explo-ration well in the Falklands. It is thefirst in a series of exploration wells thatwill test potentially large reservoir tar-gets in the deeper water off theFalkland Islands. The drill programme isbeing carried out further south of thearea that Rockhopper Exploration andDesire Petroleum have been exploring.Borders said it had reached the pointwhen drilling could begin on the 61/17-1Islands well. Operations are expected to

take around 45 days. The firms sharesclosed up 4.8 per cent at 71p.

BHP is exitingthe titaniumbusiness

Picture: REUTERS

ANALYSIS l Bhp Billiton PLC

p

26 Jan 27 Jan 30 Jan 31 Jan 1 Feb

2,200

2,180

2,160

2,14