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IN VOLATILE 2010
WHERE WILL IT CLOSE ON 31ST DECEMBER 2010?
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 The FTSE £5,000 challenge
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Issue 1,284 Tuesday 14 December 2010
CITY WARNS
OVER RIGHTS
ISSUE RIP OFF
FINANCIAL MARKETS
▲
BY ALISON LOCK
INVESTMENT banks have been
slammed by the City’s top institution-
al investors for charging unfairly
high fees to companies raising capital
through rights issues.
An inquiry commissioned by the
Institutional Investor Council, backed
by the Association of British Insurers
and the National Association of
Pension Funds, lashes out at invest-
ment banks today for charging under-
writing fees far in excess of the level
of risk they face, and taking advan-
tage of companies’ inexperience in
capital markets.
The Rights Issue Fees Inquiry fol-
lows criticism of credit crunch rights
issues launched by companies such as
housebuilder Taylor Wimpey. The fees
charged were a poor use of sharehold-
er capital and should come under a
EU chief Barnier: London’s
bankers are blackmailing us
▲
BANKING
BY MARION DAKERS
THE EU’S markets chief accused
London banks of blackmailing the
union with threats to move abroad in
the face of bonus curbs yesterday.
Michel Barnier, who made his first
appearance in front of the Treasury
select committee yesterday, said the
EU’s new guidelines calling for
aFTSE 100 ▲ 5,860.75 +47.80 DOW ▲ 11,428.56 +18.24 NASDAQ ▼ 2,624.91 -12.63
BUSINESS WITH PERSONALITY
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similar level of scrutiny as outgoings
such as executive pay, it said.
Inquiry chairman Douglas Ferrans
said companies were “paying too
much to ensure the deal is a success.”
“These costs have increased dispro-
portionately to the risks,” he said.
“What we have seen over the period is
the risks of underwriting contract
quite substantially and we would
have expected costs to come down.”
Rights issue fees almost doubled
from two per cent in 1999 to 3-4 per
cent in 2009 as distressed companies
were forced to raise fresh capital in
risky market conditions.
Shortly after the credit crisis prop-
erty firm Barratt paid £27m in fees to
banks advising its £720m rights issue,
while builders merchant Travis
Perkins paid HSBC and Citigroup
£12m to underwrite its £300m issue.
Business Secretary Vince Cable wel-
comed the inquiry’s work.“Their
bankers to get just 20 per cent of
bonus payments in cash would not
spark an exodus from the City.
Michel Barnier’s visit to
the House of Commons
came after an initial
reluctance to be quizzed
by UK politicians
www.cityam.com
report calls for more transparency
and competition in the capital-raising
process to ensure highly inflated fees
become a thing of the past,” he said.
But investment banking sources
told City A.M. last night underwriting
was still highly competitive. “The dan-
ger with these reports is that it might
be inferred that there is something
sinister going on – but these services
are being provided by a competitive
industry,” one source said.
RBC Capital Markets and Barclays
Capital structured a £2bn rights issue
for life funds group Resolution in
June in which they charged full fees
for only the risk they underwrote and
reduced fees for the risk that was sub-
underwritten.
Joshua Critchley of RBC Capital
Markets said: “It better aligned risk
and reward for the underwriting
banks. I believe that you'll see this
structure used again."
“I very much doubt there will be a
flight of talent towards Asia or else-
where,” said Barnier. “I would not be
overly impressed by the blackmail
exerted in which this kind of risk is
mentioned.”
Barnier spoke at the committee
after pressure from its chairman,
Andrew Tyrie, who wanted more
information on the powers of ESMA,
the EU’s new banking super-regulator.
£/$ 1.59 ▼-0.01 £/¤ 1.18 ▲+0.01 ¤/$ ▼1.34 -0.01
NEW MAN AT
DE LA RUE
BUT HE NEEDS HELP
TO FEND OFF
FRENCH BID P11
FREE
GENERAL ELECTRIC
buying WELLSTREAM for
RECKITT BENCKISER
buying PARA for
£800m £460m
WOOD GROUP YULE CATTO
buying PSN for buying POLYMERLATEX for
£600m £375m
A host of deals helped put life into the markets
Flurry of M&A provides
Xmas cheer for traders
finance with a £225 rights issue.
▲
M&A
Elsewhere, pharmaceutical giant
BY MARION DAKERS GlaxoSmithKline spent £162m on
BRITISH companies led a whirlwind of Maxinutrition, a privately owned pro-
buyout deals yesterday, in a sign of tein drinks firm.
emerging confidence in the M&A News of the deals helped lift the
market ahead of the Christmas break. markets, with the FTSE 100 gaining
London-listed household goods 0.8 per cent to close at 5860.75.
group Reckitt Benckiser bagged pri- “There are a lot more pre-emptive
vately-held personal care company approaches this year, for particular
Paras Pharmaceuticals for around assets or unlisted companies, that are
$726m (£460m) yesterday, while oil definitely a sign of confidence in the
services firm Wellstream finally market,” said Neil Sutton, head of cor-
agreed to be taken over by General porate finance at
Electric for £800m, pending share- PricewaterhouseCoopers.
holder approval. However, Allen & Overy head of cor-
Also in the oil services sector, Wood porate Andrew Ballheimer said:
Group shares rose 6.7 per cent after it “Nobody will be getting carried away
shelled out $955m to buy out unlisted on the back of a few deals being
Scottish rival PSN in a deal which will announced simultaneously.”
make Scottish entrepreneur Tom He added: “M&A activity is likely to
Hunter around £30m. remain patchy, as it has been through-
UK chemicals maker Yule Catto said out the fourth quarter, as long as
yesterday it plans to spend €443m doubts about the euro and sovereign
(£376m) on latex producer debt linger.”
PolymerLatex, which it hopes to MORE: P3, 4, 8, 14 & 15
Certified Distribution
30/08/10 – 03/10/10 is 110,015
 2 News
Coalition is failing to control red tape
EDITOR’S LETTER
ALLISTER HEATH
THANKS to John Redwood, the Tory
MP, we now know that the coalition’s
supposed commitment to deregula-
tion is a sham. Small business owners
– which are most affected by red tape
as they can’t afford vast HR depart-
ments – already knew this, of course,
and all firms in the country, not just
the finance sector, are being hit by
new regulations. These include the ill-
thought through ban on compulsory
retirement which – while well-inten-
tioned – actually means that many
workers will end up being sacked
instead, triggering huge litigation.
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Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alex Ridley
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
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WHAT THE OTHER PAPERS SAY THIS MORNING
US REGULATOR WIDENS STANFORD
PROBE TO BROKERS
US securities regulators have broad-
ened their investigation into the
alleged $8bn Ponzi scheme run by
Allen Stanford, the Texan billionaire,
to include brokerage executives who
invested their clients’ money in
Stanford International Bank prod-
ucts.
JPMORGAN CUTS BACK ON US SILVER
FUTURES
JPMorgan has quietly reduced a large
position in the US silver futures mar-
ket which had been at the centre of a
controversy about its impact on glob-
al prices for the precious metal. The
decision by JPMorgan was an attempt
to deflect public criticism of the
bank’s dealings in silver, a person
familiar with the matter said. The
person added that the bank’s position
in silver would from now on be
The coalition’s official policy is “one
in, one out” when it comes to regula-
tion, which would imply no net
increase. Redwood tested this with
Parliamentary questions to see how
government departments are getting
on. He compiled figures for statutory
instruments introduced and removed
over the past six months, and discov-
ered that only two departments have
actually reduced red tape. These fig-
ures obviously don’t give the whole
picture but provide the best indica-
tion so far of what is happening.
Communities and Local
Government has added 21 regula-
tions and abolished 40, cutting a net
19; Environment has added 31 and
abolished 45, cutting a net 14. These
figures don’t clarify whether regula-
tions abolished will make any differ-
ence, or whether only disused,
irrelevant bits of legislation are being
jettisoned. But the two departments
are nevertheless to be congratulated –
they account for 80 per cent of the 106
regulations abolished.
Boxing Day
travel chaos
TRANSPORT
▲
BY STEVE DINNEEN
LONDON could grind to a halt on one
of the busiest shopping days of the
year after Tube drivers agreed to yet
another strike if they are not paid an
extra £50 for working on Boxing Day.
Members of Tube drivers’ union
Aslef voted 1,025 to 127 in favour of
the 24 hour action.
London Underground claims to
have maintained 40 per cent of trains
during the last strikes but the sheer
volume of passengers on Boxing day
could buckle the transport network.
Drivers are paid up to £45,000 a
year and as part of the deal they are
expected to work for a flat rate,
including on national holidays. Aslef
says drivers are busier than they used
to be and says the deal should be
renegotiated.
“materially smaller” than in the past.
EDWARDS DROPS SALE FOR INITIAL
PUBLIC OFFERING
Edwards, the vacuum technology sup-
plier to the world’s biggest chipmak-
ers, has abandoned plans for a sale of
the company and will instead pursue
an initial public offering next year.
The company said it had pulled out of
early discussions with unnamed
potential bidders after private equity
owners CCMP and Unitas Capital
agreed to seek a flotation.
BGC BEINGS APPEAL AGAINST RULING
IN TULLETT PREBON POACHING CASE
BGC, the interdealer broker, has
begun its appeal to overturn part of a
High Court ruling that found it had
unlawfully conspired to hire staff
from its rival Tullett Prebon. The
High Court judge ruled in March that
BGC and two of its executives had
conspired to induce a breach of con-
tract among Tullett’s interdealer bro-
kers.
The Cabinet Office, International
Development and the Foreign Office
have neither added not cut rules. But
the remaining ten in the survey have
added more than they have taken
away, breaching the coalition’s own
policies. They have introduced a total
of 155 regulations and abolished just
21. Energy and Climate change has
added 14 and repealed none;
Transport added 15 and repealed
none; Health added 19 and abolished
two; Work and Pensions added 31 and
cut 11; Business has added 20 and
abolished none; and Justice, the worst
offender, has added a 22 and eliminat-
ed only one.
In many cases the UK government is
merely implementing EU regulation,
albeit often with its very own gold-
plating. The House of Commons
Library’s October report How much
legislation comes from Europe? is a
good place to start to work out who is
at fault, though it highlights how
hard it is to find a definitive answer.
It proposes several different esti-
The two sides have not come face to
face in a month, with London
Underground accusing the union of
holding London to ransom.
Union boss Bob Crow fanned the
flames, saying his only loyalty is to
his members and he “couldn’t care
less if we had a million strikes”.
To add to the travel misery, train
drivers on London Midland trains will
strike on 23 December in a row over
pay and conditions. They are angry
that drivers are earning different
wages for the same jobs after the firm
was formed in a merger.
Union leader Bob Crow
faces the wrath of
Londoners after saying
“he couldn’t care less” if
London has 1m strikes
MADOFF TO STAY AWAY FROM SON’S
FUNERAL
Bernard Madoff will not attend the
funeral of his son Mark, who commit-
ted suicide on Saturday, the convicted
fraudster’s lawyer said. Ira Sorkin said
that Madoff, who is serving a 150 year
jail sentence for running a $65bn
Ponzi scheme, had come to the deci-
sion “out of consideration for his
daughter in law and his grandchil-
dren’s privacy”.
ACCOUNTANTS PLAN TO RECRUIT
STRAIGHT FROM SCHOOL
Britain’s leading accountants plan to
capitalise on rising university fees by
increasing the number of students
they hire directly from school.
Deloitte said that it would create 100
places for secondary school leavers
under a direct-entry scheme
announced yesterday. PwC plans to
create more places for school leavers.
mates of the EU’s impact. One of its
metrics – which seems about right to
me – estimates what proportion EU
regulations and EU-related UK laws
form out of the total volume of UK
laws. It finds a figure of 53 per cent for
last year, with the answer ranging
from 37 per cent to 65 per cent
between 1997 and 2009. It is hard to
know for sure. But while the EU
accounts for a large chunk of all UK
laws and regulations, it remains the
case that most departments ought to
have been able to cut – or at least not
increase – the burden of red tape. The
fact that they are actually still adding
to it demonstrates that they don’t real-
ly understand the challenges facing
the private sector and how passionate-
ly small firms feel about the burden of
red tape. Until we get a pro-growth
policy that encourages small firms to
hire staff and invest, the UK economy
will continue to under-perform. It’s
hardly rocket science but some offi-
cials evidently never learn.
allister.heath@cityam.com
Barack Obama’s healthcare reforms face a new threat
Blow for US health laws
US ECONOMY
▲
BY HARRY BANKS
A KEY part of US President Barack
Obama’s landmark healthcare law
was declared unconstitutional yester-
day, in the first major setback on an
issue that will likely end up at the
Supreme Court.
District judge Henry Hudson
backed the state of Virginia’s argu-
ment that Congress exceeded its
authority by requiring Americans to
start buying health insurance in 2014
ROYAL BANK OF CANADA LOSES
TRIPLE-A RATING
One of Canada’s largest banks has lost
its triple-A rating after the rapid
growth of the lender’s investment
banking business was questioned.
Royal Bank of Canada was downgrad-
ed from Aaa to Aa1 yesterday by
Moody’s, which warned that investors
were becoming exposed to greater
risks from the bank’s continued
expansion in investment banking.
RGI USED AS PERSONAL BANK, CLAIMS
SHAREHOLDER
A major shareholder in a Russian
property company listed on Aim has
claimed it is being used as a personal
bank for the chairman and chief exec-
utive, and demanded an overhaul of
the board. A string of allegations were
made against RGI International in a
stock exchange posting, including
bribery, nepotism and excessive pay.
CITYA.M. 14 DECEMBER 2010
NEWS | IN BRIEF
House price drop for November
Housing prices continued to fall last
month, the Royal Institution of
Chartered Surveyors (RICS) said today.
Over half (53 per cent) of surveyors
reported that house prices had fallen
over the three months to November.
And 43 per cent said a stagnation in
prices. And the survey showed an accel-
eration in the decline of new buyer
enquiries, although in London a small
majority of surveyors in reported a rise
in new enquiries. Nationally, transaction
levels dropped to their lowest rate since
June 2009, the survey said.
Pfizer raises payout 11 per cent
Drugs giant Pfizer said it was raising its
quarterly dividend to 20 cents per share
from 18 cents yesterday as it named
board member George Lorch as nonex-
ecutive chairman, a week after the
abrupt departure of chairman and chief
executive Jeffrey Kindler. Kindler quit
suddenly a week last Sunday night with
no warning to shareholders. Pfizer's
shares had fallen about 27 per cent dur-
ing his tenure, which was marked by last
year's $67bn (£42.2bn) acquisition of
rival Wyeth.
Picture: PA
or face a fine, adding that the provi-
sions invite an “unbridled exercise of
federal police powers”.
But he declined to invalidate the
entire healthcare law, a small victory
for Obama, whose administration
will appeal the decision.
Health insurers’ stock prices initial-
ly rose on the ruling before later
tapering off as investors saw more
uncertainty as the case proceeds. The
ruling signalled that changes to the
bill rather than a full overhaul are
more realistic.
FRENCH CAR MAKERS SEE RECORD
SALES
Two of France’s largest car makers
are set to post record sales for 2010,
aided by strong growth in some
emerging markets and a lower-than-
expected drop in Europe. PSA
Peugeot Citroën said Monday the
company's unit sales are likely to
reach a record 3.6m vehicles this
year. Renault said it expects to sell
2.6m cars this year.
WAL-MART CLOSES RUSSIA OFFICE
Wal-Mart is closing the Moscow
office it opened just a few years ago,
saying it no longer wants to build an
operation in Russia from scratch,
though it remains open to acquisi-
tion possibilities. The decision by the
US retail giant comes after several
Russian grocery chains were linked
to Wal-Mart as a potential merger
partner, but nothing materialised.
CITYA.M. 14 DECEMBER 2010
Irish finance
minister bans
AIB bonuses
▲
EUROZONE CRISIS
BY MARION DAKERS
WORKERS at bailed-out Allied Irish
Banks were left reeling after Irish
finance minister Brian Lenihan dra-
matically intervened to block their
bonus payments yesterday.
AIB’s board decided last night to
revoke the €40bn (£33.8m) bonus pool
after Lenihan wrote to the bank
threatening to withdraw state support
or ban the payouts in law if AIB did
not voluntarily step down.
The bank is 19 per cent owned by
the taxpayer following a €3.5bn
bailout, and more public money is
expected to support AIB as part of
Ireland’s €110bn bailout from the EU
and the IMF.
AIB executive chairman David
Hodgkinson said last night: “The
board of AIB very much welcomes the
actions of the minister and is relieved
to be in a position not to pay these
bonuses. We are determined to posi-
tion the bank to play a full role in the
recovery and development of the Irish
economy.”
Around 2,400 staff were due to be
paid backdated bonuses on Friday, fol-
lowing a successful lawsuit brought
by a trader over the suspension of his
bonus for work done in 2008.
Hodgkinson said the bank had
received “strong legal advice that it
was obliged to pay these bonuses”.
The bonus pool provoked a wide-
spread political backlash last week
when the bank ploughed on with
plans to pay out.
AIB staff are usually able to make
complaints and suggestions directly
to the chairman, and it is thought
that the bank has not set up extra
channels to deal with objections to
yesterday’s ruling.
FAST FACTS | ALLIED IRISH BANKS
● AIB was formed when three Irish banks
merged in 1966, and was bailed out in 2008
● The Irish government could take upwards of
90 per cent of the bank into public ownership
as part of the country’s EU and IMF bailout
One of Guy Hands’ companies was withdrawn for the Walker guidelines Picture: REUTERS
Hands’ firm falls short of
Walker disclosure goals
PRIVATE EQUITY
▲
BY MARION DAKERS
SEVERAL private equity companies
including Guy Hands’ vehicle Terra
Firma fell short of the Walker guide-
lines this year, the group responsible
for policing the transparency rules
said yesterday.
Terra Firma withdrew Autobahn
Tank & Rast from the guidelines
because “it is not fully compliant
with the UK requirements”, the
Guidelines Monitoring Group said.
Meanwhile, TPG’s company Vita
Group could not be checked as its
accounts were not made public until
after the review had begun. A
spokesperson told City A.M. that Vita
no longer had enough employees in
the UK to fall under the rules.
Most of the 32 companies reviewed
had satisfactory disclosure policies.
The Walker guidelines were intro-
duced in 2007 to make private equity-
backed firms more transparent.
News 3
Wellstream up
as GE confirms
£800m offer
M&A
▲
SHARES in oil services group
Wellstream jumped 5.8 per cent to
790p yesterday after General Electric
confirmed its £800m takeover offer.
GE offered a total of 786p per share
for the Newcastle-based firm, six pence
above its original offer. The bid leaves
Wellstream’s directors in line for a
£22m windfall.
Wellstream’s directors own 2.8 per
cent of the company’s shares, which
GE will buy at a 29.1 per cent premium
to the closing price before the news of
bid interest. Chairman John Kennedy
stands to gain the most, making
£18.4m from his 2.3 per cent stake.
Wellstream declined to comment
on whether the board members will
remain with the company once it is
absorbed into GE’s Italy-based oil and
gas division.
GE will take over Wellstream’s man-
ufacturing plants in both Newcastle
and Niteroi in Brazil.
Wellstream said its advisers, Credit
Suisse and Rothschild, believe the deal
is fair, and has recommended that
shareholders accept the takeover.
“[T]he logic and desire of the GE bid
seems greater than the desire or finan-
cial resources of other potential bid-
ders, with the possible exception of
National Oilwell Varco,” said Keith
Morris of Evolution Securities.
 4 News CITYA.M. 14 DECEMBER 2010

Sanofi extends £12bn offer ROCHE BEEFS UP BOARD

for Genzyme by six weeks

be higher as the company rectifies a board” that the bid substantially
▲

PHARMACEUTICALS
BY HARRY BANKS
SANOFI-Aventis has extended its
snubbed $18.5bn (£12bn) cash bid for
US biotech company Genzyme by six
weeks, buying the French drugmaker
time to persuade its reluctant target
to talk.
Only 0.9 per cent of shares were
tendered by a Friday deadline, Sanofi
said yesterday. Genzyme has rejected
the $69 a share bid, arguing it should
manufacturing crisis and awaits
results on its experimental Campath
drug for multiple sclerosis.
Sanofi chief executive Chris
Viehbacher has said he would consid-
er a higher offer if Genzyme provided
a closer look at its business to justify
more money.
Genzyme chief executive Henri
Termeer said the meagre response to
Sanofi’s offer shows shareholders
“strongly support the view of the
undervalues Genzyme. Genzyme’s
top shareholders include activist
investors Carl Icahn and Ralph
Whitworth.
Investors and analysts say an offer
price of $75 per share to $80 per share
would be more likely to attract share-
holders, and the stock has traded
above the offer, which Sanofi took
hostile in October. Yesterday,
Genzyme shares closed up 0.5 per
cent to $70.30.

| PROMOTION

ROCHE, the Swiss pharma giant, has beefed up its board by appointing a trio of heavy-
weight non-executive directors. It said Nestle chief executive Paul Bulcke (top) would join
its board, alongside Shell chief executive Peter Voser (bottom left) and Christoph Franz
(bottom right), the chief executive-designate of Germany’s national airline Lufthansa.
Pictures: GETTY, REUTERS

Power
The
Hundred
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TELL US YOUR TOP 3 CHOICES
FOR THE POWER HUNDRED 2011
2011
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▲

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2011, whether they be bankers, lawyers, chief
executives or hedge fund managers.
FOR YOUR CHANCE TO WIN, SIMPLY TELL US YOUR TOP 3 CHOICES FOR THE POWER HUNDRED. A NEW WINNER WILL BE CHOSEN EACH DAY.
WHO WILL TOP OUR EXCLUSIVE CLUB THIS YEAR?
Go to www.CityJet.com/cityam
to submit your entries and for full
terms and conditions.
Two years ago, the Power Hundred was
dominated by those involved in rescuing the
banks. This year's list will have a different
complexion, with dealmakers and successful
business leaders in the ascendancy.
PROPERTY
BY MARION DAKERS
SIMON Property’s efforts to influence
Capital Shopping Centres’ £1.6bn pur-
chase of the Trafford Centre crum-
bled further yesterday after seller Peel
Holdings threw its weight behind
CSC.
Peel said yesterday it “has no inten-
tion of selling the Trafford Centre for
cash and this has never been an aim
of the group – in spite of the fact that
… a cash sale would achieve a higher
price”. Its support comes after a flur-
ry of strongly-worded statements
between the firms over the weekend.
Simon, the world’s biggest shop-
ping centre owner, offered to under-
write a 400p-per-share placing for CSC
to help fund the transaction, provid-
ing Peel gave up its claim to a 20 per
cent stake in the enlarged company
and took cash instead.
CSC rejected the offer on Sunday.
per cent stake in CSC and hopes to
delay the Trafford Centre sale in
order to make a takeover offer, will
face the firm at an emergency gener-
al meeting set for 20 December.
“The Simon Group takeover moves
from unlikely to seemingly impossi-
ble,” said Evolution Securities analyst
John Cahill in a note.
However, others believed Simon
could strike again before CSC share-
holders can approve the Trafford
Centre deal next week. “We do not
believe Simon has exhausted all its
options,” analysts at JPMorgan
Cazenove said in a note. “An indica-
tive offer for CSC still has a high
chance, but so has an offer including
Trafford Centre or the arrival of a
third party.”
Simon claims it already has the
support of some CSC shareholders.
Shares in CSC closed up 0.9 per
cent at 393.5p yesterday.

Don’t forget to pick up City A.M. on 22 December to check out who's up, who's down, which banker is
pulling the best deals, who has entered our exclusive club and who has dropped out of it.
*from London City Airport, excluding Milan Linate. Terms and conditions apply
GlaxoSmithKline flexes muscles
in £162m protein shake buyout
To celebrate this year’s list, CityJet, City A.M.’s partner for the Power
Hundred 2011, is giving away one pair of flights each day for 7 days in the run tribution network to market
▲

HEALTHCARE
up to the list. CityJet is a subsidiary of one of the largest airlines in the world BRITISH pharmaceuticals giant
GlaxoSmithKline yesterday agreed to
and offers a choice of over 480 flights a week to 14 major European and UK buy protein shake maker
Maxinutrition for £162m.
business centres from London City Airport. With just a 15 minute check-in Glaxo said it would buy all of
Maxinutrition’s shares from current
time - the shortest of any UK airport - CityJet are the smartest choice for owner Darwin Private Equity. The
time-conscious business and leisure passengers in London. deal price includes the repayment of
outstanding debts.
Glaxo is hoping to use its global dis-
Maxinutrition’s brands, which are
currently sold in gyms and speciality
stores.
“This deal will give Glaxo a strong
presence in the fast developing pro-
tein-based sports nutrition market,
appealing across a broad spectrum of
consumers from elite athletes to
sports participants, ” said John
Clarke, president of Glaxo’s con-
sumer healthcare business.
Men like steak,
beer, footie.
Women are much
less complicated.
Personalised Silver
Family Necklace
from £49
 8 News CITYA.M. 14 DECEMBER 2010

IS RECKITT’S LATEST DEAL A WINNER FOR INVESTORS? Interviews by John Dunne

KEITH BOWMAN| CLIVE BLACK |

“ “
HARGREAVES LANSDOWN SHORE CAPITAL
Reckitt is continuing its move into the While the price is demonstrably high,
healthcare arena. Along with the cost synergies Reckitt’s management has earned investor trust
which Reckitt will gain, the deal pushes and faith through the performance that it has
open wide the door to the emerging markets. generated from acquisitions to date.
Investors are happy to give the company the ben- We continue to believe that Reckitt’s is a high

” ”
efit of the doubt. In all, market consensus quality company. The price paid reveals
opinion continues to denote a buy. the strength of consumer brands.

GRAHAM JONES| PANMURE GORDON

“ The acquisition provides Reckitt with a strong strategic position in one of the fastest growing global healthcare
markets. We expect that there will be some cost savings to come out quickly but top line synergies tend to take time to
materialise. The acquisition is to be funded from existing facilities; borrowing costs for Reckitt are very low.
We reiterate our Buy recommendation.

” Reckitt Benckiser has been on the acquisition trail this year. Picture: REUTERS

Bag a bargain in Flybe’s

Reckitt looks
Christmas flight Sale! to India with
£460m deal
▲
CONSUMER
BY JOHN DUNNE
RECKITT Benckiser has gained a
foothold in the Indian healthcare
market with a £460m deal for Paras
Pharmaceuticals.
The company, which was majority
owned by private equity firm Actis, is
a major Indian manufacturer of oint-
ments and flu remedies.
The deal puts Reckitt, whose house-
hold products include Cillit Bang and
Finish dishwasher detergent, on the
Leedsrd acquisition trail again months after it
o
s Bradf paid £2.5bn for SSL International,
Nante best known for Durex condoms and
the Scholl footcare range.
een
Aberd Paras has seen sales soar over the
last four years, as the growing Indian
middle class increases its spend on
healthcare products.
uay Reckitt, whose rivals include
Newq Johnson & Johnson and Sanofi,
Jersey
believes that the deal will strengthen
its position in emerging markets.
t
Belfas However, some analysts pointed
City out that Reckitt is paying eight times
Paras’ £56m annual sales and more
than 30 times its £15m ebitda in the
astle year to March.
Newc Reckitt chief executive Bart Becht
said he was paying for the “extremely
good growth potential” of the busi-
ness.
He said: “It creates a material
health care business in India, one of
the most promising markets in the
world, with the addition of a number
of strong and leading brands.”
However Evolution Securities ana-
lyst Warren Ackerman said: “One
potential fly in the ointment to be
aware of is that Darshan Patel, one of
the brothers that used to run Paras,
has set up rival Vini Consumer
Products.”
Reckitt, whose shares closed up
1.82 per cent at 3,573p, was advised
by JP Morgan. Actis and Paras were
advised by Morgan Stanley.
ANALYSIS l Reckitt Benckiser
3,600 p 3,573.00
13 Dec
3,550
3,450
13 Sep 1 Oct 21 Oct 10 Nov 30 Nov

sey
Guern
ldorf
Düsse
Fly from
AssetCo sees Brown aide to
dip in profits join BHP board
£
30 99
one
way
▲

OUTSOURCING
ASSETCO, the outsourced fire and res-
cue services provider, said first half
pre-tax profit fell by £200,000 to
£3.4m, compared to six months earli-
er.
Up to 60% off Hotels! But it said it expected its contract
with the United Arab Emirates to con-
tribute to improve revenues in the
second half of the year.
Sales grew by four per cent to
Keeping London on the move £17.1m from £16.5m in the six
months to the end of September.
Net debt also rose from £75.7m to
Fares are one way including taxes and charges, only available online, subject to availability. 21 day advance purchase required. £77.1m in the period, AssetCo said,
Available for travel on or before 29.10.11. Headline fare does not apply to all routes. See website for details of HRS offer. Book by 02.01.11. adding it was asking banks to release
cash from its asset financing.
APPOINTMENTS
BHP Billiton has appointed a former
government minister and one of the
architects of the 2008 banking bailout
to its board.
Baroness Shriti Vadera will join the
miner as a non-executive director from
1 January.
Vadera held a variety of roles in gov-
ernment, as minister for Africa, eco-
nomic competitiveness, and
enterprise.
She left government in 2009 to
advise the G20. Prior to her career in
politics she spent 14 years working as
an investment banker at UBS Warburg,
specialising in emerging markets.
 The Capitalist
10
HEDGIES FORK OUT FOR CHARITY AS
LORD ARCHER HOSTS THE AUCTION
HEDGE fund philanthropists had one
of their biggest galas of the year this
past weekend, thanks to a fundraiser
by Hedge Fund Care, a fund chaired by
Robert Mirsky that makes grants to
charities fighting child abuse and neg-
lect. 400 or so of the industry’s finest
donned their finest blacktie and
arrived for a three-course banquet at
St Paul’s Grange Hotel.
Tables were hosted by the likes of
Goldman Sachs, Deutsche Bank,
Citigroup, Morgan Stanley, Credit
Suisse and HSBC, and at £750 a seat,
the guests had already thrown a few
thousand into the collection pot
before they even sat down.
With a charity auction led by Lord
Jeffrey Archer – who has reportedly
raised £39m at charity auctions in his
lifetime – the hedges bid for prizes
that included a signed Status Quo gui-
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
thecapitalist@cityam.com
tar and a luxury holiday in Barbados.
“Pity the man who decides to stand up
and tries to leave while he’s doing an
auction,” Mirsky told The Capitalist.
With speeches by Esther Rantzen,
Mirsky and a 12-year-old girl who had
been bullied, the hedgies were hardly
wanting for information about the
good causes on which they were
splashing their cash – which might
be why they raised a total of £250,000
Esther Rantzen (centre) poses with TT International CFO Fiona Carpenter in the red dress
and Hedge Fund Care chairman Rob Mirsky on the far right.
after the costs of the evening, which
will be available for grants in the
coming year.
Not a bad haul for an industry sup-
posedly populated by heartless oppor-
tunists, eh?
TIGER PRANKS
So where do ex-City boys end up sever-
al years down the line? Some of them,
at least, go on to found businesses,
Still the butt of the joke: Tiger Woods
with www.yourgolftravel.com, found-
ed by Ross Marshall and Andrew
Harding, celebrating its fifth birthday
over the weekend. The top of the
Gherkin is certainly a more impres-
sive venue than hosted my fifth birth-
day party, and the 300 or so traders in
attendance were treated to some addi-
tional entertainment courtesy of a
mischievous friend.
With the likes of Colin
Montgomerie and Nick Faldo gracing
the soiree, who else should show up
but a very “WAG-like” girl, who bust-
ed her way into the VIP area with
shouts and screams. She
demanded to speak to Tiger
Woods, claiming to be one of
Woods’ many maligned girl-
friends.
Just as the situation
moved towards the
inevitable call for securi-
ty, with the party’s hosts
turning various shades
of red, she suddenly
burst in to song, joined
by two other seeming
“guests” and proceeded
to serenade the atten-
dees with West End
musical numbers.
But what on earth had
happened? Pin the blame
on Geoff Sewell, who runs
Incognito Artists, a firm
that sends top actors and
actresses from West End
shows along to parties to
cause mayhem.
“I’ve never seen such red
faces,” says our source of
his hosts.
CITYA.M. 14 DECEMBER 2010
EURO PUNTING
Bad news for the euro, good news for
traders. WorldSpreads is just about to
open up the first spread betting oppor-
tunity on the future of the single cur-
rency itself. Traders have long been
able to bet on the euro as they would
on any other major currency, but
being able to punt on its existence
must surely mark a new low in the
euro’s difficult year.
The bet will be available from
January (so let’s hope it lasts the year!),
with a spread of 710-720 days for how
long the currency will continue.
Optimists bet over 720, with the poten-
tial win or loss being 420 times the
stake.
WorldSpreads CEO Conor Foley says:
“Trapped between ideology and reali-
ty, the euro will be 2011’s hottest finan-
cial debate.” (I think we know what
direction you’d bet on, Conor). “Every
day we trade futures and currencies,
but never before have I seen a trade on
the future of a currency.”
Better hope those overly keen
Eurozone regulators don’t get on the
case any time soon!
FOR ENGLAND
So the Royal Wedding is meant to cost
Britain billions in lost revenues next
year, but what about the ever-recur-
ring annual cost of “sick days” pulled
after office Christmas parties? A survey
of 6,000 people by Travelodge reveals
that such stunts will cost the UK econ-
omy £620m this year alone. And this is
despite the generosity of the business-
es throwing them: 38 per cent will pay
for the office party this year, thought
this is down from 45 per cent in 2009.
As for the extent of the boozing, bet-
ter not tell your health insurer:
employees are meant to drink an aver-
age of 7.3 units of alcohol at the party,
with men gulping down 9.6 and
women 5.6. That’s well over the
recommended daily limit of 3-4
for men and 2-3 for women.
So just bear in mind your
patriotic duty, readers, when
you wake up with that shat-
tering headache, suffering
the consequences of your
excesses. The economy
needs you!
ALL YE TUNEFUL
With the Canary Wharf meno-
rah fully lit last week for
Chanukah, it’s time for the
Christmas carol singers to mus-
cle in on some seasonal action
today. Two carol services, at
5.30pm and 7.30pm in East
Wintergarden, will host 900
people in total.
CITYA.M. 14 DECEMBER 2010 News 11

Printer needs Indians to fight French

DE LA Rue is used to being a target.
During the 1940s blitz, it was
bombed by the Luftwaffe; Harold
Wilson rode to its rescue in 1968 by
blocking a takeover from Rank; now
it is the French who have the firm in
their sights.
Of course, populist politicians will
side with the company’s manage-
ment, which has dismissed
Oberthur’s offer as derisory. Losing
Cadbury to Kraft was bad enough,
they mutter, but the French print-
ing British banknotes? Quelle hor-
reur!
However, a significant number of
investors – already irked by manage-
ment’s decision to keep the
approach under their hat for four
whole weeks – completely disagree.
Oberthur’s 905p-a-share offer proba-
bly doesn’t reflect the company’s
true value, nor its technical expert-
ise, but some analysts say it isn’t a
million miles away.
To be fair, it is awfully difficult to
put a price tag on De La Rue. How do
you value a firm has lost its biggest
customer, the Indian government,
at least for now? Last month it
announced a halving in six-monthly
profits to £23.8m and a 20 per cent
reduction in revenues to £209m.
Unless the Indian government
moves quickly to show it still trusts
De La Rue – and speed is not its
strong point – some investors might
prefer not to wait and see. Try as it
may, the firm’s management is not
in a position to play hard to get.
Analysts at UBS say De La Rue is
wrong to sniff at the 905p-a-share
offer. If management can bid ‘em
up, says the broker, then we could
have a deal. Until then, the ban-
knote printer needs to enlist the
Indians to help it fight the French.
BOTTOMLINE
Analysis by David Crow

India is yet to declare its trust in De La Rue Picture: GETTY

De La Rue hire
is bid veteran
mium over the stock price at the time.
▲

MANUFACTURING
BY JULIET SAMUEL
DE La Rue, the UK money printer and
takeover target, has appointed a new
chief executive known for the success-
ful sale of his last firm, Chloride.
Tim Cobbold will take over the helm
of the embattled manufacturer in
January at a time when many are sug-
gesting that it could soon become the
object of a bidding war.
The firm revealed last week that the
private French money printer
Oberthur Technologies had made a
De La Rue denied that Cobbold was
being brought in to bid up the firm’s
price for a possible sale.
“[Cobbold] is excited by De La Rue as
an independent company,” said a
spokesman.
De La Rue has been seen as vulnera-
ble for takeover since revealing that
production problems have cost it
£35m and put at risk a major contract
with the Royal Bank of India this year.
ANALYSIS l De La Rue

NEW
850 p
bid for it at 905p per share.
As chief executive of Chloride 838.50 YOUR TICKET INCLUDES:
13 Dec
Group, Cobbold presided over a bid- 750 • Entry to The Club from 8pm
ding war that saw eventual buyer

YEAR’S
Emerson Network Power up its bid to • A mini bottle of Moët
£944m from an initial offering of 650
Champagne
£723m, in order to triumph over Swiss • A selection of complimentary
engineering firm ABB.

The winning bid by Emerson came
in at 375p per share, a 79 per cent pre-
TIM COBBOLD,
APPOINTED CEO OF
DE LA RUE
TIM Cobbold is no stranger to bidding
wars after his successful sale of Chloride
Group to Emerson Network Power in
September. Chloride shareholders bene-
fited from a £221m increase in the sale
price after ABB stepped in to counter-
offer.
Since the sale he has occupied a sen-
ior role at Emerson, which he is leaving
to take up his position as chief executive
EVE 20 10
cocktails, drinks from the bar
13 Sep 1 Oct 21 Oct 10 Nov 30 Nov and welcome canapés until 9pm
• Live music in the Marquee
• Complimentary snack from
of De La Rue. the BBQ
He joined Chloride originally as chief
operations officer in 2007, before mov- Escape the crowds in central London and • Three of London’s top DJs in
ing up to the top job the year after. the Clubhouse
Before his job at Chloride, however, make New Year’s Eve 2010 one to remember
• Breakfast nibbles between
he had worked solely at Smiths Group
(formerly TI Group) since qualifying as a
with a private fireworks display at midnight. 3am and 4am!
mechanical engineer and a chartered
accountant.
After joining Smiths in 1989, he soon
worked his way into several senior TICKETS ARE £125 (£115 FOR MEMBERS) AND ARE AVAILABLE ONLINE.
financial management positions over his
18-year stint at the company. He also
holds a non-executive directorship of
Drax Group, the coal power generator.
The Roof Gardens 99 Kensington High Street, London W8 5SA
He will begin at De La Rue in January
at an important time: analysts see his www.roofgardens.virgin.com/cluboffers
task as either to resolve its production E: victoria.l@roofgardens.virgin.com • T: 0207 368 3960
problems – or to sell it on at a premium.
 12 News CITYA.M. 14 DECEMBER 2010

Loans boost
Inflation fear wanted for
as VAT looms China GDP

▲
ASIA
UK ECONOMY (CPI) edged up to 3.2 per cent in
▲

BY JULIAN HARRIS
INFLATION expectations could lead to
even higher prices and wages, the
deputy governor of the Bank of
England said yesterday.
“Given the unexpected strength of
inflation in recent months, this risk
has probably increased,” said Charles
Bean. The Bank will watch inflation
“like proverbial hawks,” he added.
Bean was speaking after official data
showed a nine per cent rise in the price
of materials and fuels used by Britain’s
manufacturing industry.
The figures, comparing November’s
prices with the same time the previous
year, were the highest since July,
according to the Office for National
Statistics (ONS).
Input prices for manufacturing rose
0.9 per cent between October and
November, nine times faster than the
previous year.
The overall consumer price index
October, considerably above the Bank’s
target rate of two per cent.
And the increase in VAT to 20 per
cent, scheduled for 4 January, will
stoke further inflation, the consultan-
cy KPMG said today.
Some 60 per cent of retailers and
consumer goods producers will
increase prices over and above the 2.5
per cent VAT rise, they reported.
“The economic downturn placed
pressure on UK businesses to blanket
discount, and the intention to raise
prices is an understandable reaction,”
said KPMG’s Martin Scott.
Yesterday the changes in VAT rise
were attacked by the accountants’
group ICAEW.
“At a time when companies are fac-
ing a tough 2011, having to change the
VAT rate is not a good way to start the
new year,” said ICAEW’s Ian Strange.
He added: “Many will be worried
about the effect it will have on sales in
the first quarter.”
BY JULIAN HARRIS
CHINA’S government wants at least
seven trillion yuan (£662bn) of new
bank loans made next year, in a bid to
keep its economic boom on track, it
was revealed yesterday.
The surprising news came after a
signal on the weekend towards more
“prudent” monetary policy, to tackle
the country’s price inflation.
Consumer prices rose by 5.1 per
cent in November compared to last
year, the sharpest rise since July 2008.
The government was expected to
increase the cost of lending by
increasing rates by the year end. And
last week increased the reserve
requirement ratio (RRR) for banks for
the sixth time this year, and the third
time in the last five weeks.
Yet the central bank is content to
raise the inflation target to four per
cent, and wants loans to maintain
economic growth of at least eight per
Charles Bean said the Bank of England will watch inflation “like hawks” Picture: GETTY cent, an insider told Bloomberg.

London bounces back despite IoD: regulation impeding

worries over economic future investment in UK training
▲

BUSINESS to offer training opportunities to their

staff, the IoD said.
UK ECONOMY planning to make redundancies over of all regions. London’s proportion of SKILLS shortages in the workforce are Some 63 per cent of directors say
▲

BY JULIAN HARRIS
LONDON’S businesses are recovering
strongly from the recession, a survey
revealed yesterday.
More than two in three (68 per cent)
businesses in the capital plan to
expand in the coming six months,
while hiring intentions are rocketing.
Last year only 11 per cent of employ-
er planned on hiring at normal rates.
Yet now 45 per cent will be recruiting,
according to the survey conducted by
the CBI with consultants KPMG.
And the proportion of companies
the next six months fell to 29 per cent,
from 53 per cent a year ago.
This is despite lingering concerns
over the state of the economy.
Twice as many managers were pes-
simistic about the economy as opti-
mistic.
There was positive news for the
coalition, though, with an extraordi-
nary 97 per cent of respondents sup-
porting the spending cuts.
Earlier this year the Centre for
Economics and Business Research
showed that London has the lowest
reliance on government spending out
GDP reliant on the state is 15 per cent
lower than the UK average, they said.
Yet businesses are unhappy at levels
of burdensome regulation, with 63
per cent saying this has become worse
over the last year.
“The government must find the
right balance between maintaining
essential legislation and cutting
unnecessary red tape,” said Sara
Parker of the CBI.
And 69 per cent of respondents said
the Conservatives’ proposed cap on
immigration would negatively affect
their recruitment from overseas.
holding back 58 per cent of UK busi-
nesses, a survey revealed today.
And high taxes, burdensome regu-
lations and misguided government
projects are deterring companies
from investing in skills, the Institute
of Directors (IoD) said.
“Businesses want to invest in train-
ing, and they would invest even more
if the government improved the busi-
ness environment by removing exces-
sive employment regulations,” said
the IoD’s Miles Templeman.
Programmes such as Time to Train
actually make it harder for companies
the programme has imposed more
red tape, while over one in ten will
remove training discussions from
appraisals due to problems created by
the scheme.
Yet almost a third (31 per cent) of
employers are struggling to fill vacan-
cies due to a lack of skills among
applicants, the survey reported.
And even worse is the “skills gap” –
a lack of skills among current employ-
ees. Almost half (47 per cent) of direc-
tors said some of their staff lacked the
necessary skills needed to do their
jobs properly.

DO YOU THINK THERE IS A SKILLS SHORTAGE IN THE

UK? Interviews by Chris Barker

ADAM MITCHELL | LLOYDS TSB SYNDICATE

“I don’t think that there are necessarily less skilled people in
the UK. But in my experience graduates need more skills
than the ones that they normally enter the company with.

EDWARD TREDGER | BEAZLEY

LOOKING TO BOOST YOUR CAREER IN 2011?
COME TO OUR OPEN EVENING “I think it depends on the skills you are looking for. There
WEDNESDAY 15 DECEMBER, 18.00-21.00 is no shortage of MAs and degrees here, but when it
comes to trade and practical skills we are less good.”

SIGN UP / / / GEORGINA PORTER | NICOLL CURTIN

“Yes there is. It is getting difficult for us to recruit the peo-
ple with the skills we need in IT. Maybe there should be
more emphasis on practical skills.”
CITYA.M. 14 DECEMBER 2010
Trust in the
BBC plummets
▲
MEDIA
TRUST in the BBC has fallen below 50
per cent for the first time in the cor-
▲
poration’s history, according to data
released yesterday.
The British Social Attitudes survey
found that in 2009 just 49 per cent of
respondents said they trusted the
state-funded broadcaster.
That is almost a quarter less than in
1983, when 72 per cent had faith in
the organisation.
Trust in the police has also deterio-
rated, the survey found, falling from
77 per cent in 1983 to 62 per cent in
2009.
Eric Pickles is reducing the amount of cash Whitehall gives to councils
Miliband tries to
woo Lib Dems into
anti-right alliance
▲
POLITICS
BY DAVID CROW
ED Miliband yesterday tried to woo dis-
affected Liberal Democrats by calling
on them to “work with Labour on
issues of common interest”.
Capitalising on last week’s bloody
vote on tuition fees – which sparked
the worst rebellion in the party’s histo-
ry – Miliband said some Lib Dem MPs
“fear their deal with the Tories is shift-
ing the gravity of British politics to the
right”.
He said he was issuing his plea to
those “that are reluctant to abandon
ship but are concerned at the direc-
tion of their party”.
“I invite them to work with us on
issues of common interest,” he added.
New City regulator will allow
banks to fail FSA, says Sants
REGULATION
BY MATTHEW WEST
THE chief executive of the Financial
Services Authority (FSA) said yester-
day one of the biggest jobs its succes-
sor would face would be to convince
the public that banks should be
allowed to fail.
Hector Sants said the Prudential
Regulatory Authority (PRA), which he
will take control of in 2012, would be
more willing to allow fims to fail
than its predecessor.
Picture: GETTY
But Miliband’s overtures received
short shrift from Tim Farron, the Lib
Dem president-elect who voted against
the coalition on tuition fees and who
is seen as a left-wing standard-bearer
for disgruntled colleagues.
He said: “Why would any sane pro-
gressive give Labour a second glance?
As part of the coalition, Lib Dems have
started fixing Labour’s economic
mess, taking millions out of income
tax and reforming British politics.
Things Labour had 13 years to do but
failed to deliver.”
In the words of one senior Lib Dem
strategist, the party has been left
“bruised not broken” by last week’s
vote on university fees, which saw over
half the party rebel against plans to
triple the upper fees limit to £9,000.
He said: “Where it will feel differ-
ent is the fact that it has a far narrow-
er focus and the recognition that we
are not seeking to operate a ‘zero fail-
ure’ regime is now directly built into
the statutory objective.”
The FSA boss said not all firms reg-
ulated by the PRA would pose a risk
to its statutory objective of maintain-
ing stable financial markets by their
failure.
He also suggested the PRA would
spend a far higher proportion of its
budget managing the decline of
Coalition swings the axe
▲
POLITICS
BY DAVID CROW
THE coalition started to embark on
the biggest spending cuts in a genera-
tion yesterday, as a line of government
ministers detailed where the axe will
fall.
Local councils will see the amount
of cash they get from central govern-
ment slashed by 17 per cent, or
around £6.5bn, next year.
Communities secretary Eric Pickles
said that no council would suffer a
reduction in its total spending power
of more than 8.9 per cent, once coun-
cil tax receipts and NHS funding for
social care is taken into account. The
average reduction will be 4.4 per cent.
Meanwhile, Pickles unveiled his
firms in an efficient manner.
But he admitted “persuading socie-
ty that this in an acceptable goal will
be a challenge.”
Sants added the UK was unlikely to
introduce additional capital require-
ments on big banks if international
agreement could not be reached.
“We do understand the importance
of large global institutions operating
in London having a level playing field
globally so we would not likely be
superequivalent or gold plate,” he
said.
localism bill, which gives councils
more control over local planning deci-
sions. It also paves the way for com-
munities to take over libraries and
other services that are threatened
with closure.
Local authorities have a statutory
duty to protect some services, such as
child protection and support for the
disabled, meaning more widely-used
services like libraries and swimming
pools will bear the brunt of cuts.
Meanwhile, policing minister Nick
Herbert said police forces in England
and Wales would face cuts in central
funding of four per cent next year,
and five per cent in the year after.
Herbert acknowledged that the sav-
ings would be “challenging”, but said
front-line services could be shielded
News 13
Property taxes
to rise in April
▲
BUSINESS
HUGE rises in business tax are due in
April thanks to the government’s
“random” way of setting rates, a lead-
ing retail group said yesterday.
Commercial property taxes are
based on the previous September’s
retail price index (RPI), the British
Retail Consortium (BRC) said.
The method is prone to volatile
jumps in RPI, unfairly affecting busi-
nesses, according to the BRC.
In September RPI inflation was
recorded at 4.6 per cent.
"An increase on this scale will
undermine job creation,” said
Stephen Robertson of the BRC.
by efficiencies and back-office savings.
Meanwhile, the Department for
Education admitted that schools in
England and Wales would not see
their budgets rise in real terms over
the next four years, due to rising
prices.
A Department for Education
spokesman said: “Spending totals
were based on its best forecast of infla-
tion at the time, produced by inde-
pendent Office for Budget
Responsibility.
“We always knew these were fore-
casts of inflation and subject to
change – undoubtedly these will
change again.
“We have not cut the schools budg-
et totals – cash limits remain as
announced in the Spending Review.”
 14 News
EURO IN CRISIS
▲
EUROZONE CRISIS
BY STEVE DINNEEN
THE European Central Bank (ECB)
bought far fewer government
bonds than expected last week,
casting doubt in markets over its
commitment to the programme.
The bank purchased €2.67bn
(£2.26bn) worth of bonds, up from
€1.97bn the week before, but far
short of the €5bn analysts had
been expecting.
However, the ECB warned the
true figure could be higher as
transactions take two to three
days to close.
The ECB does not break down
its purchases by region but it is
understood to be concentrating
exclusively on embattled
Eurozone countries Ireland,
Greece and Portugal.
While the purchases have
helped to bring down bond yields
in these countries, the ECB is
understood to be worried about
the amount it is investing.
The level of investment remains
far below the €16.5bn spent in the
first week of the bond-buying pro-
gramme in the spring, although it
is the biggest weekly amount
since late June, when the ECB
bought more than €7bn a week on
Italy’s PM to
face crisis vote
EUROZONE CRISIS
▲
ITALIAN Prime Minister Silvio
Berlusconi is set for a crucial show-
down in parliament today after
party rebels forced a vote of no-
confidence linked to his handling
of several crises including the
eurozone unrest and the country’s
budget deficit.
Berlusconi is expected to win
the vote, though rebels including
lower house speaker Gianfranco
Fini and his loyalists have thrown
their weight behind the no-confi-
dence motion tabled by the oppo-
sition party. If he loses, the
74-year-old will be forced to resign.
Wood Group buys rival PSN
▲
COMMODITIES
BY MATTHEW WEST
OIL and gas services company Wood
Group has agreed to buy its smaller
rival PSN in a deal worth $955m
(£602m) that will create one of the
worlds largest providers of services to
the oil and gas industry.
The deal will see Aberdeen-based
PSN become part of Wood Group’s
brownfield division, which devotes its
time to servicing ageing oil and gas
fields. The enlarged company is
expected to generate around $3bn in
annual revenues.
PSN chief executive Bob Keiller, will
average.
ING analyst Martin van Vliet
said: “We now have a more com-
plete picture of the scale of the
ECB’s intervention in peripheral
bond markets in recent weeks
and, frankly, it is less impressive
than we had expected.
He added: “Looking ahead, we
suspect that the amount of bond
buying will be scaled back sub-
stantially in the remainder of this
year, amid thinning trading vol-
umes. But early next year, when
the market returns to normal
trading conditions, the ECB will
likely again have to step up its role
as ‘peripheral bond investor of the
last resort’.”
Roger Bootle at Capital
Economics raised concerns the
ECB might withdraw its uncon-
ventional policy measures too
quickly. He said it “should try to
reassure markets by providing a
clear exit strategy from the exist-
ing emergency measures that are
currently in place”.
Meanwhile, Angela Merkel
appears to have forced the issue of
eurobonds off the agenda at a
crunch EU summit to discuss the
financial crisis on Thursday.
The German chancellor has
come under intense pressure
Spain risks firestorm over pensions
in an effort to impress the markets
▲
EUROZONE CRISIS
BY HARRY BANKS
THE Spanish government’s despera-
tion to calm financial markets
means it will risk a political
firestorm to impose new pension
rules that may not even help its
budget for at least a decade.
Urged by Brussels and econo-
mists, the cabinet is bringing for-
ward the reform, which raises the
retirement age -- aiming to show it
making the hard choices needed to
secure public finances and deal
with an ageing population in the
head up the newly merged business
Keiller will also join the Wood Group
board.
Wood Group said the acquisition
would enhance its strategy of main-
taining a balance between oil & gas
development and “later cycle produc-
tion support”
Wood Group will take on $328m of
PSN’s debt. Its owners, several of
whom took part in a management
buyout of the firm from Haliburton
in 2006, will receive about $80m in
Wood Group shares as well as cash.
The owners include the Scottish
entrepreneur Tom Hunter whose
stake will be worth around £30m.
Angela Merkel
has moved the
issue of rescue
eurobonds off the
agenda
Picture: REUTERS
from businesses in her home
country to resist the possibility of
joint Eurozone government
bonds, with many fearing
Germany will be left to shoulder
the cost of its weaker rivals.
EU leaders will instead use the
meeting in Brussels to try to set
out changes to the bloc’s treaty
and agree on a permanent mecha-
long-term. The cabinet has already
passed a record austere budget and
taken tough steps to rationalise its
small banks. Over the past week it
has also rushed out other measures
including state selloffs to ease its
cashflow issues.
The pensions reform, however, is
about convincing investors of its
commitment to structural change;
savings built up over the last
decade mean it will have no impact
before 2015 and bring only gradual
benefits in the years that follow.
That deals with none of the issues
Bob Keiller, the chief executive who
has a near 10 per cent stake, is set to
make around £60m from the deal.
ANALYSIS l Wood Group
p 521.00
520
13 Dec
480
440
400
13 Sep 1 Oct 21 Oct 10 Nov 30 Nov
nism for defending the euro
against financial upheavals.
There is pressure for the
European Financial Stability
Facility, used to bailout troubled
nations, to be extended from its
current €750m but this has also
been resisted by Germany and
allies including Holland, who say
it is sufficient.
of banking, local government
spending and growth which have
driven a bond market sell-off that
shows little sign of abating after
engulfing Ireland and Greece.
Yet Prime Minister Jose Luis
Rodriguez Zapatero last week
pulled forward his target for pass-
ing the legislation to January from
an initial end-March deadline.
Madrid’s cost of borrowing con-
tinued to rise yesterday – reaching
5.47 per cent on its 10-year bonds –
close to levels which drove Greece
and Ireland to the IMF.
JAMES LEIGH-
PEMBERTON
CREDIT SUISSE
James Leigh-Pemberton, 54, is man-
aging director and chief executive
of Credit Suisse UK, a role he took
over in July 2008.
He is responsible for developing
the bank’s client relationships in
private banking, investment bank-
ing and asset management in the
UK. He also serves as a member of
the firm’s Europe Middle East and
Africa operating committee.
Prior to assuming his current
role, Leigh-Pemberton held senior
CITYA.M. 14 DECEMBER 2010
Mass strikes
cause chaos
across Greece
▲
EUROZONE CRISIS
GREEK public transport and media
workers launched a week of anti-aus-
terity strikes yesterday expected to
ground flights, disrupt services and
pile rubbish on the streets in the run-
up to Christmas holidays.
Parliament began discussing a bill
to cap wages at state-run firms and
introduce company-level wage bar-
gaining in the private sector, both
key elements in a €110bn (£93bn)
bailout agreement with the EU and
the IMF.
Public buses across the country
and the Athens subway stopped oper-
ating for six hours yesterday, while
workers at the state broadcaster ERT
joined the walkout and staff at the
state-owned ATEbank went on
rolling 24-hour strikes.
Protests will peak tomorrow, when
the main labour unions from the
public and private sector have called
a 24-hour general strike. Flights will
be grounded and all state services
disrupted.
positions within the Credit Suisse
EMEA investment banking depart-
ment, including serving as head of
European investment banking,
head of European equity capital
markets and chairman of UK invest-
ment banking. He joined Credit
Suisse First Boston in 1994, follow-
ing a 15-year career at SG Warburg
Securities.
In the past year Credit Suisse has
advised on RBC’s acquisition of
BlueBay, Axa’s sale of its UK unit to
Resolution, Santander’s acquisition
of 318 Royal Bank of Scotland and
NatWest branches, Telefonica’s
acquisition of Brasilcel and the
Heineken’s acquisition of Femsa.
Alongside Leigh-Pemberton,
Wood Group was advised by
Tristran Lovegrove, director, UK
investment banking.
CITYA.M. 14 DECEMBER 2010
JPMorgan tops brokers poll
▲
FINANCIAL SERVICES
BY ALISON LOCK
JPMORGAN Cazenove has proved its
worth as a broker, banker and adviser
over the past five years, new analysis
showed yesterday.
The bank has stayed in pole posi-
tion from its 2005 ranking to lead the
November 2010 table of stockbrokers
and advisers, as well as stockbroking
rankings for FTSE100, FTSE250 and
small cap clients produced by data
provider Hemscott.
It also retained client numbers,
holding a total of 251 companies in
November 2010 – considerably above
Thermo Fisher
buys US rival
for $2.1bn
▲
INDUSTRY
BY HARRY BANKS
SCIENTIFIC instruments maker
Thermo Fisher Scientific is set to
acquire Dionex for $2.1bn (£1.3bn) to
broaden its lab-equipment offerings
and boost its presence in Asia.
Dionex shareholders will receive
$118.50 per share, representing a 21
per cent premium over Friday’s clos-
ing price, according to the deal
announced on Monday. Its shares
climbed to $118.20, just below the
deal value, in morning Nasdaq trad-
ing.
Thermo shares also rose, by 3.1 per-
cent, as the deal is expected to imme-
diately boost profits after closing.
Dionex is the world’s third-biggest
player in chromatography systems,
which are used in analysis for every-
thing from drug compounds to water
quality to food contaminants.
The systems allow components of a
mixture to be separated before they
are put into a mass spectrometer
device for analysis.
Thermo is a major player in mass
spectrometry, and called Dionex
“highly complementary” to its prod-
ucts.
“It takes that technology that
Yule Catto launches £225m rights Creston to snap up US
issue to buy Germany’s PolymerLatex PR firm Cooney/Waters
▲
CHEMICALS
BY HARRY BANKS
CHEMICALS maker Yule Catto yester-
day said it had agreed to buy
Germany-based latex maker
PolymerLatex for €157m (£131m) to
boost its market share, product offer-
ing and pipeline.
Yule Catto, which will also assume
€286m in PolymerLatex debt, plans to
fund the acquisition from a combina-
tion of a four-for-three rights issue
that would raise about €225m and
its nearest competitor, Numis
Securities, which now has 124.
The tables, in the five-year anniver-
sary edition of the Hemscott
Corporate Adviser Rankings Guide,
show several new houses in the top
five leading positions.
Numis, Cenkos and Investec
Securities all added more than 20
clients between November 2005 and
November 2010, to jump at least ten
places apiece in the rankings.
Cenkos registered the biggest leap,
growing from 11 clients in 2005 to
102 this year, to go from an unranked
position to number three.
Dionex has and now exposes it to the
full scale of Thermo Fisher’s reach,”
said Quintin Lai, an analyst with
Robert W. Baird.
The deal also continues the trend
of consolidation in the life-sciences
tools space, Lai said.
“Thermo, being the largest player
out there, continues to look for differ-
ent properties to add that would com-
plement its portfolio,” Lai said.
He added “This is one of the areas
where it does not have much expo-
sure. That’s why they went after it.”
Dionex, which is based in
Sunnyvale, California, and has more
than 1,600 employees, introduced the
first ion chromatography system for
water analysis shortly after its found-
ing in 1975, the companies said in
announcing the deal.
In addition to increasing its lab-
equipment offerings, the acquisition
will also allow Thermo to expand its
presence in the Asia-Pacific region.
Dionex generates more than 35 per-
cent of its revenue in Asia-Pacific and
other emerging markets. It reported
nearly $420m in sales for its most
recent fiscal year.
Thermo reported revenue of
$10.1bn last year.
new credit facilities.
The new credit facilities comprise a
euro denominated three-year term
loan facility of £150m and a multi-cur-
rency revolving credit facility of £60m.
The deal is expected to add to Yule
Catto’s earnings from the first year of
ownership.
PolymerLatex’s underlying sales
were €386.7m and underlying earn-
ings €54.6m for the year ending
December 2009.
Yule Catto’s shares closed 30p up
at 290p yesterday.
In contrast, Seymour Pierce and
UBS saw large client outflows and
tied at fifth place with RBS Hoare
Govett, with 82 clients each.
In the adviser rankings, four of the
top five firms saw client numbers rise
substantially. Cenkos moved most from
an unranked position to tied third
place by growing its client base from
seven to 71 in the period, while
Arbuthnot Securities also added 40
clients. Morgan Stanley showed sig-
nificant gains in advising FTSE100
clients, rising from 12th place in 2005
to tie in second place with Bank of
America Merrill Lynch this year.
METRO BANK SECURES £50M FOR EXPANSION
RBC Capital acquires Loudoun as it
continues expansion effort into Europe
▲
M&A
Royal Bank of Canada (RBC) said yes-
terday it had acquired boutique
financial advisers Loudoun Capital
Partners for an undisclosed sum as
part of its continuing expansion
efforts in Europe.
The bank which replaced Citigroup
as advisers to Resolution, the life
funds group run by Clive Cowdery
ANALYSIS l Yule Catto
290.00
p 13 Dec
280
260
240
13 Sep 1 Oct 21 Oct 10 Nov
News 15
BEST OF THE CITY STOCKBROKERS
Rank Nov 2010 Rank Nov 2005 Clients Clients
Nov 2010 Nov 2005
1 JP Morgan Cazenove 1 251 246
2 Numis Securities 12 124 83
3 Cenkos Securities - 102 11
4 Investec Securities 13 85 62
5 RBS Hoare Govett 4 82 114
5 Seymour Pierce 3 82 138
5 UBS Investment Bank 2 82 142
METRO BANK,
launched in July as
Britain's first new
high street retail
bank in more than
100 years, has
raised £50m of new
capital from
investors to further
develop its busi-
ness. The latest
round of capital
raising builds on
an initial £75m
secured earlier this
year, and the com-
pany said the new
cash will help it
increase the num-
ber of new branch
openings over the
first two years to at
least 18 from 12.
Picture: REUTERS
last month, said the acquisition of Patrick Meier, head of investment
Loudoun, which will become part of banking Europe at RBC Capital
RBC Capital Markets, forms an impor- Markets, said the deal was “indicative
tant step in the expansion of its of the focus we have placed on broad-
investment banking business. ening our scope of coverage in finan-
RBC added Mike Carter and Robin cial services, a sector in which RBC
Mackie, the co-founders of Loudoun can play a major role.”
Capital Partners, would now head the He added the acquisition of
up the European financial institu- Loudoun would “add a new layer of
tions group within its global invest- expertise to our strong European plat-
ment banking platform. form.”
based healthcare PR agency, Red Door
COMMUNICATIONS
Communications. The acquisition is
COMMUNICATIONS firm Creston has still awaiting shareholder approval at
snapped up US healthcare PR opera- a general meeting tomorrow.
tion Cooney/Waters in a £19.5m deal. Singer analyst Jonathan Barrett
The transaction will come in three said: “The proposed acquisitions
stages, including a £5.9m upfront pay- expand Creston’s PR healthcare foot-
ment to be financed from existing print in the key US market and will
bank facilities and two subsequent give the company greater access to
payments in 2014 and 2017. many of the large global healthcare
Creston says it expects the acquisi- companies. At five times Ebit, the price
tion to be earnings enhancing in the is attractive.”
first full financial year. The US firm Creston has seen its revenues jump
30 Nov will form a synergy with Creston’s UK- nine per cent in the first half to £32m.
 16 News
Weir guilty over oil for food
▲
ENGINEERING
BY MATTHEW WEST
Engineering firm Weir Group
announced yesterday it would plead
guilty to two charges of breaching UN
sanctions over oil-for-food contracts it
was awarded by Saddam Hussein
between 2000 and 2002.
Weir was formally charged with
the offences by the Crown Office in
Scotland yesterday and it is expected
the case will be heard at the High
Court in Edinburgh today.
The charges relate to contracts,
awarded by the Iraqi government
between 2000 and 2002 which were
India delays
Cairn ruling
once again
▲
OIL & GAS
BY HARRY BANKS
INDIA’S oil ministry has again
delayed a decision on whether to
allow British oil explorer Cairn to
sell a majority stake in its Indian
unit to Vedanta Resources.
Murli Deora, the country’s oil
minister, said the decision would not
be made before the end of India’s
financial year in March.
“We have to move with caution.
There are too many complications.
We will decide by the end of this
financial year,” he said yesterday.
Shri Sundareshan, the top bureau-
crat in India’s oil ministry, had previ-
ously said a decision would be made
in February.
Cairn investors had hoped the
deal would close by the end of the
year, but the government is still
deciding whether to back it in the
face of complaints from state-con-
trolled ONGC, Cairn India’s partner
in the massive Rajasthan oilfields.
ONGC would like the tax rules
changed to reduce its tax burden as
part of the deal.
Vedanta, which mines zinc, alu-
minium, copper and iron in India,
hopes to use the Cairn stake to
Supermarket chains halt Xmas orders Regal board backs £77m
in Scotland after weather takes its toll offer from Energees
▲
RETAIL
BY HARRY BANKS
SUPERMARKETS and online shops –
including Tesco, Sainsbury’s and
Asda – have halted orders or sus-
pended deliveries, after last week’s
heavy snow weather brought the
transport network to a standstill.
Many are struggling to cope with a
backlog of deliveries after strong
downfalls. Couriers including Parcel
Force and Home Delivery Network
have also been affected, as well as
inflated by £3.1m. The payments
were made via an agent working for
one of the company’s subsidiaries.
Initial independent inquiries found
that Weir paid a total $4.5m (£2.85m)
in kick-backs on 16 of the 38 contracts
it was awarded by the Iraqi govern-
ment.
The oil-for-food programme was
designed to allow Saddam Hussein’s
government to buy essential supplies
despite the UN sanctions imposed on
it. But an independent UK investiga-
tion found more than 2,000 compa-
nies globally had accepted illegal
payments many of which were kicked
back to government officials.
expand in the oil and gas market.
Cairn plans to use the proceeds of
the sale to return billions of dollars
to shareholders and to fund explo-
ration in Greenland.
Cairn India’s main asset is a 70 per
cent stake in the Rajasthan oil devel-
opment project with an estimated
6.5bn barrels of oil and gas.
Cairn Energy last month cast
doubt on the planned sale, but said
it still hoped to seal the deal next
year.
Cairn said there was no guarantee
it would sell 40 to 51 per cent of its
62.4 per cent stake in Cairn India to
London-listed Vedanta due to regula-
tory uncertainty.
Shares in the London-listed firm
closed up 2.6 per cent at 414p.
ANALYSIS l Cairn
480 p
413.60
13 Dec
440
400
13 Sep 1 Oct 21 Oct 10 Nov 30 Nov
Boots and M&S.
Christmas is the busiest time of the
year for online shopping, with an esti-
mated £6.4bn spent over the festive
period. Retailers are relying on a sales
pick-up after a tough year.
The Tesco Direct website has
stopped taking orders from cus-
tomers in Scotland, saying it could
not guarantee Christmas deliveries,
while Sainsbury’s suspended deliver-
ies for Scotland.
Tesco said its priority was to deliver
goods which had already been
The engineering firm will be subject
to a confiscation order of £13.9m,
which has already been agreed. Weir
is may also receive a further fine.
ANALYSIS l Weir Group
1,900 p 1,779.00
13 Dec
1,700
1,500
13 Sep 1 Oct 21 Oct 10 Nov
Jon Moulton backs the current E-Synergy management
ordered.
Grocery deliveries are not affected.
Sainsbury’s has suspended deliveries
Asda Direct not delivering large items
and has stopped orders for in-store
collection before Christmas
Parcel Force has suspended deliver-
ies, Boots has suspended next-day
deliveries, Asda Direct warned it was
unable to deliver large items, such as
furniture, before Christmas, and said
it had stopped taking orders for in-
store collection in the run up to 25
December.
TIME LINE | WEIR PAYS PRICE FOR OIL-FOR-FOOD KICK-BACKS
● 2000-2002
Weir Group is awarded 38 contracts by
Saddam Hussein’s Iraqi government
related to the supply of pump equipment
and spare parts for clean water supply
and oil field water injection and pipelines.
● July 2004
Weir admits an internal investigation has
discovered financial irregularities in its
work for the UN’s Oil for Food pro-
gramme. The company initially denied
any wrongdoing.
● July 2004
Weir commissions an external investiga-
tion of all contracts undertaken under
the oil-for-food programme. The external
investigation is undertaken by City law
30 Nov
Picture: Micha Theiner/CITY A.M
▲
COMMODITIES
OIL explorer Regal Petroleum said yes-
terday it would recommend share-
holders accept a £77m ($121.5m)
takeover offer from Energees
Investments as Cyprus-based
Heamoor said it was considering
making a competing bid.
Ukraine-focused Regal said the
offer price was 24p a share, a 30 per
cent premium to the company’s clos-
ing share price of 18.5p on 9
December.
CITYA.M. 14 DECEMBER 2010
firm Herbert Smith.
● October 2004
Weir disciplines staff following the find-
ings of both its internal and external
investigations into kick-backs to Iraqi
government officials but refuses to say
whether any staff have been sacked.
● October 2005
An independent inquiry finds over 2,000
firms involved in the oil-for-food pro-
gramme made illicit payments to the
Iraqi government for contracts.
● December 2010
Weir announces it will plead guilty to
two counts of breaching UN sanctions in
the Scottish High Court.
Jon Moulton
buys 58pc
of E-Synergy
▲
PRIVATE EQUITY
BY STEVE DINNEEN
JON Moulton has bought a control-
ling stake in venture capital and pro-
fessional development firm
E-Synergy.
The private equity guru will buy 58
per cent of the Belfast-based company,
which also has operations in the East
Midlands and Scotland, for an undis-
closed sum.
E-Synergy specialises in working
with entrepreneurs to help them
maximise returns out of their busi-
nesses, particularly early-stage tech-
nology firms.
He told City A.M. he will not take a
hands on role at the company, saying
he has “every confidence” in the cur-
rent management. He said: “I have
been involved for a long time as a
small shareholder. I believe there is
scope for improvement in its opera-
tions.”
Moulton, who acted as a judge in
this year’s City A.M. awards, resigned
as head of Alchemy Partners, the firm
he founded 12 years ago, after a spec-
tacular bust-up with his partners.
He formed Better Capital just
weeks later, raising £142m when he
floated it on Aim and a further £67m
stepping up to the main market just
six months later.
The firm bought the iconic
Reader’s Digest out of administration
and acquired aerospace manufactur-
er Gardner for £20m.
The board “intends unanimously to
recommend shareholders accept the
proposed offer,” said Keith Henry,
chairman of Regal. “The offer pro-
vides greater certainty of value to
Regal shareholders during this diffi-
cult time for the company.”
Following the announcement,
Energees Investments said it was con-
sidering its options to deliver a more
attractive cash offer, as well as a
potential combination of Regal assets
with Ukrainian gas producer Geo-
Alliance Oil-Gas.
CITYA.M. 14 DECEMBER 2010 Lifestyle | TV& Games 17

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6pm BBC News
6.30pm BBC London News
7pm The One Show: With
Alex Jones and Matt Baker.
7.30pm EastEnders; BBC News
8pm Holby City: Greg gains
new respect for Elliot’s skills.
9pm Crimewatch
10pm BBC News
10.25pm Regional News
10.35pm Crimewatch Update
10.45pm CHOICE Imagine
11.35pm FILM The Wackness:
Premiere. Comedy, with Ben
Kingsley 2008; Weatherview
1.15am Sign Zone: See Hear
1.45am Sign Zone: The Big Silence
2.45am Sign Zone: The Bionic Vet
3.15am-6am BBC News
6pm Celebrity Eggheads
6.30pm Strictly Come Dancing
– It Takes Two: With Claudia
Winkleman.
7pm Coast: The team travels
from Cork to Dublin.
8pm Decade of Discovery:
Notable wildlife discoveries
made since the year 2000.
9pm CHOICE Pompeii: Life and
Death in a Roman Town
10pm Miranda: Penny and
Miranda are forced to
see a therapist.
10.30pm Newsnight; Weather
11.20pm This World: Pakistan’s
Flood Doctor
12.20am BBC News
3.15am-6am Close
6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm ITV News 6.30pm Hollyoaks 6.25pm Live from Studio Five
7pm Emmerdale: Rhona waits 7pm Channel 4 News 7pm Five News at 7
anxiously for the results of the 7.55pm 4thought.tv 7.30pm Street Market Chefs;
Down’s syndrome test. 8pm CHOICE Kirstie’s Five News Update
7.30pm Living in Fear: Tonight Homemade Home 8pm Sea Patrol UK: Last in the
8pm A Touch of Frost: Part one 9pm The Family series; Five News at 9
of two. David Jason takes on 10pm Frankie Boyle’s Tramadol 9pm CSI: Miami: A car bomb
his last-ever case as the Nights kills an attorney.
detective. 10.35pm The Morgana Show 10pm CSI: NY; Five
10pm ITV News at Ten 11.10pm The Big Bang Theory News Update IMAGINE
10.30pm London News 11.35pm Robert’s Web 11pm CSI: Crime Scene BBC1, 10.45PM
10.35pm The War You Don’t 12.10am Music on 4 1.05am World Alan Yentob examines the unusual
B-Boy Series 2am Freesports on 4 Investigation
See 12am True CSI legacy of Margot Boyd, the actress
2.30am Beach Volleyball 3.20am
12.25am The Zone; ITV News KOTV Boxing Weekly. Action from 12.55am SuperCasino perhaps best known as the ‘Dog
Headlines around the world. 3.50am World 4am The FBI Files 4.45am Woman’ Mrs Antrobus in The Archers.
2.25am The Rockford Files 3.20am Sport 4.15am Survival of the House Doctor 5.10am Michaela’s
The Jeremy Kyle Show 4.15am- Fittest 4.45am Sailing 5.10am- Wild Challenge 5.35am-6am
5.30am ITV Nightscreen 6am Deadliest Catch Michaela’s Wild Challenge

SKY SPORTS 1 BRITISH EUROSPORT 9pm Four Weddings 10pm I 1am The Event 1.45am Life 4.40am Days That Shook
SATELLITE & CABLE

7pm Sky Sports News at Seven
7.30pm Live Johnstone’s Paint
Trophy Football 10pm Revista
De La Liga 11pm Football Asia
11.30pm A-League 12am
Scottish Premier League
Football 1am Johnstone’s Paint
Trophy Football 2am Revista De
La Liga 3am Scottish Premier
League Football 4am
Johnstone’s Paint Trophy
Football 5am-6am Max Power
SKY SPORTS 2
6.30pm European Tour Golf
7.30pm Live Greyhound Racing
10pm European Tour Golf
11pm Premier League Bowls
12am British Basketball 2am-
3am European Tour Golf
SKY SPORTS 3
7pm Premier League Bowls
8pm British Basketball 10pm
Sports Unlimited 11pm Golfing
World 12am Max Power 1am-
2am Sports Unlimited
6.45pm Strongest Man
7.45pm Boxing 10pm Freeride
Spirit Show 10.15pm Rallying
11.15pm Ski Jumping 12.15am-
12.30am Destination Dakar
ESPN
6pm Pardon the Interruption
UK 6.30pm NFL: Monday
Night Football 9pm Eredivisie
Review Show 10pm Premier
League Review 11pm ESPN
Scottish Premier League Kicks
11.15pm ESPN Game of the
Week 11.45pm ESPN Serie A
Kicks 12am Live Basketball:
Tennessee Volunteers v
Oakland Golden Grizzlies (Tip-
off 12.00am). 2am Live
Basketball 4am Press Pass
2010 4.30am-5.30am
Eredivisie Review Show
LIVING
7pm CSI: Miami: Three arms
smugglers are killed. 8pm
America’s Next Top Model
Am Alex Reid 11pm Criminal
Minds 1am CSI: Miami 2am
CSI: Crime Scene Investigation
3am Charmed 4.40am Rehab
5.30am-6am Home Shopping
BBC THREE
7pm Total Wipeout 8pm
EastEnders: The Greatest
Cliffhangers 9pm Mad About
the House 10pm EastEnders
10.30pm Young Fishmonger of
the Year 11.30pm Family Guy
12.15am Mad About the House
1.15am Young Fishmonger of
the Year 2.10am EastEnders:
The Greatest Cliffhangers
3.15am Total Wipeout
4.15am-5.15am The Real
Sleeping Beauty
E4
7pm Hollyoaks 7.30pm Friends
9pm The Idiot Awards: Spoof
ceremony that honours
moments of stupidity. 11.05pm
The Event 12.05am Scrubs
Unexpected 2.25am What the World 5.30am-6am How
About Brian 3.10am Reno Does That Work?
911! 3.50am Being Erica
4.35am-6am Switched DISCOVERY HOME &
HEALTH
HISTORY 7pm A Baby Story 8pm 10 POMPEII: LIFE AND DEATH IN …
7pm Alexandria: The Greatest Years Younger 9pm Paralysed BBC2, 9.00PM
City. 8pm Clash of the Gods and Pregnant 10pm Cambridge professor and Pompeii
9pm Warriors: The First Embarrassing Illnesses 11pm expert Mary Beard uses forensic
Shogun 10pm The Real Jason The Real A&E 12am Paralysed science to examine the lives of the
and the Argonauts 11pm The and Pregnant 1am infamous Roman town’s residents.
Sword 12am Warriors: The Embarrassing Illnesses 2am
First Shogun 1am The Real The Real A&E 3am 10 Years
Jason and the Argonauts 2am Younger 4am Baby Tales
Extreme Trains 3am-5am 5am-6am A Baby Story
Clash of the Gods
SKY1
DISCOVERY 7.30pm Modern Family 8pm
8pm How Do They Do It? Futurama 9pm Fat Families
8.30pm How It’s Made 9pm 10pm Fringe 11pm FILM
Swamp Loggers 10pm Built Sharpshooter: Action thriller,
from Disaster 12am Bear starring James Remar. 2007. KIRSTIE’S HOMEMADE HOME
Grylls: Born Survivor 1am 12.40am Road Wars 2.35am CHANNEL 4, 8.00PM
Deadliest Catch 2am Chris Oops TV 3.30am The Dresden Kirstie Allsopp is invited to the Surrey
Barrie’s Massive Engines 3am Files 4.20am Sell Me the home of Amanda Pearce and her
The First World War 3.50am Answer 5.10am-6am Are You husband John, who hope to revamp
Nasa’s Greatest Missions Smarter Than a 10 Year Old? their tired decor. Last in the series.

COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
   

SUDOKU KAKURO
4 3 24 22 12 12 37 17 
15 30
 
13 14
Place the numbers from 1 to 9 in each empty cell so that each 18    
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 29
3 44 12
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 4 19 14
  
above or to the left of it. 22 8
You can only use the digits 1-9 15 6 
    and you must not use the
38
16 11      
same digit twice in a block. 5 17 16
  The same digit may occur 21 35  
11
   more than once in a row or
column, but it must be in a
8
23
17
7
15

21
  separate block.
8 13 9 
29 10
    16 27


  ACROSS DOWN
1 Spanish 1 Be worthy or
  
  WORDWHEEL I C
“tomorrow” (6)
6 Nerve cell (6)
7 Break (4)
deserving (5)
2 Trick (5)
3 Gambling stake (4)
Using only the letters in the Wordwheel, you have
    ten minutes to find as many words as possible,
M A 9 Fleshy edible fruit with 4 Church cellar (5)
a tuft of stiff leaves (9) 5 Attach to (5)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters M 13 Copy on thin paper (5)
15 Charge a contribution
8 Health resort near

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
H S to state revenue (3)
a spring (3)
10 Characteristic sound
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
E N
16 Slang term for
diamonds (3)
made by a horse (5)
11 Vigilant (5)
QUICK CROSSWORD 2 1 6 1 8 3 1
17 Employ (3) 12 Alight (4)

5 ( $ 3 ( ' & $ 6 +
8 3 9 1 2 7 9 3 SUDOKU         
19 Equip in advance for a
particular purpose (5)
14 Coarse file (4)
$ * & + 8
7 8 9 6 6 8 2          17 Commandeer (5)
' $ / / 2 : $ 1 & ( 9 5 6 4 9 8 7 5
         23 Long strings of 18 Foxhole (5)
$ / , $ 8 2 8 4 9 3 1 7 pasta (9)
5 ( 1 2 , 5 & 8 % ( 1 2 4 3 7 9 8 4
         20 Short composition for
         25 Encourage (4)
0 $ 5 2
% 2 $ 7 :
6 (
2 5
:
. ( 5
6
8 3 7
8 1
9 2 4
3 2
5
1
2
WORDWHEEL          26 Appraisal of the value
a solo instrument (5)
21 Melody (3)
1 & 2 2 % ,
9 7 8 5 8 9 7 The nine-letter word was          of something (6)
( 6 & $ / $ 7 2 5 ' 22 Bear fruit (5)
2 1 5 3 7 8 6 9
FASCINATE
         27 Protective fold
( . + ( *
7 2 1 4 5 1 2          24 Boundary, rim (4)
/ $ & ( ' ( & $ ' ( of skin (6)
 18 News
BEST OF THE BROKERS
ANALYSIS l Game Group GAME GROUP
80 p
63.00
Brewin Dolphin had started covering the
13 Dec retailer with a “buy” rating and a three-
month target price of 80p. The broker
believes the stock is a strong candidate for
70
active traders due to its volatility, and notes
the firm’s market outperformance as men-
tioned in last week’s trading update. It
60 looks forward to Game’s post-Christmas
update on 12 January for further signs of
13 Sep 1 Oct 21 Oct 10 Nov 30 Nov strong sales.
ANALYSIS l BT Group 183.60 BT GROUP
13 Dec Royal Bank of Scotland rates the telecoms
p Bank
180
giant “buy” with a target price of 181p. The
broker expects several upcoming Ofcom
decisions on pensions and price controls to
160 only have a small impact on the company,
and believes BT’s 36 per cent outperfor-
mance of the sector could have momentum
140 into next year. BRS has upgraded its earn-
ings per share forecasts for 2011 by two to
13 Sep 1 Oct 21 Oct 10 Nov 30 Nov four per cent.
ANALYSIS l Drax DRAX
Evolution Securities rates the energy firm
420 p
“reduce” with a target price of 390p. It
expects the company’s shares will weaken
376.00
400 13 Dec following the government’s consultation on
the electricity market, with sentiment
380 damaged by talk of a minimum carbon
price and . Evo adds that the trend for ris-
360 ing UK gas prices could support longer-
term share price growth despite the
13 Sep 1 Oct 21 Oct 10 Nov 30 Nov predicted near-term dip.
To appear in Best of the Brokers email your research to notes@cityam.com
Mining firms haul FTSE 100 Chinese cheer fades
to highest level in five weeks across Wall Street
THELONDON
Integrated oil stocks were in
demand, with BG Group up 0.8 per
cent, following the crude price
REPORT higher.
Concerns remained over China’s
soaring inflation, which sped to a
28-month high and showed signs of
S T
trong miners pushed Britain’s spreading beyond food prices, put-
top share index to a five-week ting pressure on the government to
closing high on Monday, ratchet up its monetary tightening
buoyed by firmer metals policy.
prices on strong economic data “I think there’s a bit of short-term
from China, while sector consolida- relief that despite the high infla-
tion moves gave oil services firms a tion numbers, China’s authorities
fillip. have yet to raise interest rates,
The FTSE 100 closed up 47.80 although one suspects it could only
points, or 0.8 per cent, at 5,860.75, be a matter of time before that hap-
its highest close since 9 November, pens,” Henk Potts, equity strategist
albeit in extremely light trade, as at Barclays Wealth, said.
the UK market began its last full Oil services firms Petrofac and
week before the Christmas holiday Amec rose 3.5 per cent and 2.1 per
period. cent respectively, with traders cit-
Meanwhile, the FTSE 250 closed ing a read-across from sector consol-
up 78.77 points, or 0.7 per cent, up idation moves from mid-cap peers
at 11,359.73, while the FTSE 350 Wellstream and John Wood Group,
closed up 24.82 points or 0.8 per with the FTSE 250 index hitting its
cent at 3,103.86. highest since November 2007.
Miners provided the main sup- Wellstream, which agreed to
port for the blue-chip index after about an £800m takeover offer from
China’s industrial output in General Electric Co, added 5.8 per
November beat expectations, send- cent, while John Wood Group
ing copper to a record high. climbed 6.7 per cent after agreeing
Kazakh copper producer to buy unlisted Scotland-based rival
Kazakhmys was the top FTSE 100 PSN for $995m (£626.5m).
riser, up 4.1 per cent. Sticking with the M&A theme,
Also in the top five gainers yester- consumer goods firm Reckitt
day, Fresnillo closed up 3.98 per Benckiser put on 1.8 per cent after
cent, while Antofagasta 3.07 per agreeing to buy privately held
cent on similar sentiment. Indian ointments and personal care
CITY MOVES | WHO’S SWITCHING JOBS
Edited by Juliet Samuel
Standard Chartered Private
Tim Hinton has been promoted at
Standard Chartered Private Bank to
regional head of private banking for
the UK and Jersey. In this role he will
be reporting to Stephen Richards
Evans.
Hinton has worked at Standard
Chartered for more than 24 years,
mostly in wholesale banking. He will
contonue to represent the bank in the
Business Growth Fund, a new equity
fund to be formed by the UK’s largest
six banks.
Bank of America Merill Lynch
Wealth Management
Tom Wicks has joined BoA/ML Wealth
Management as a portfolio manager
and will be based in London, reporting
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
company Paras Pharmaceuticals for
about $726m (£457.1m).
Insurer Prudential fell 0.6 per
cent after Asian insurance group
AIA said it has little interest in bid-
ding for the Asian assets of the Pru.
Companies that have been the
subject of recent vague bid talk
were on the back foot, with security
firm G4S and maker of replacement
knees and hips Smith & Nephew
among the heaviest fallers, both
down 0.8 per cent.
Banking stocks, which have strug-
gled against the backdrop of wor-
ries over sovereign debt problems in
the euro zone, rose as risk appetite
among investors improved slightly.
“There’s some optimism about
what's going to happen in 2011. I
think we could see steady but prob-
ably modest economic growth,
interest rates likely to remain on
hold, and a bright corporate picture
helped by rising profitability,” Potts
added.
ANALYSIS l FTSE 5,860.75
13 Dec
5,900
5,800
5,700
5,600
5,500
13 Sep 1 Oct 21 Oct 10 Nov
in association with
Logica
Seamus Keating, currently Logica’s chief opera-
tions and finance officer, has been announced
as the firm’s chief executive for the Benelux
countries. He will take up his new job as soon
as a successor for his role as CFO has been
found, replacing Wilbert Kieboom, who has
decided to leave the group. Kieboom will, how-
ever, stay with Logica until next year for the
transition period. Keating is also a non-execu-
tive director of Mouchel Group.
to Simon Miles. He will be managing
the portfolios of ultra-high net work
clients, working with the wealth struc-
turing and advisory teams.
He joins the bank from Neos Capital,
where he was a fund manager and has
also previously worked at New Star
Asset Management and HSBC
Investment Management.
Rexiter Capital Managment
Christopher Vale has been promoted
at the London-based affiliate of State
Street Global Alliance to its chief exec-
utive officer, a role he will take over in
January.
He is currently the firm’s chief
investment officer for Asia and will
succeed Rexitor founder Kenneth King
as Rexiter’s CEO. Vale has previously
worked at Kleinwort Benson
Investment Management.
Markets & Investment
THENEW YORK
REPORT
he Nasdaq closed lower and
ended eight straight days of
gains yesterday while the Dow
and S&P 500 ended flat as opti-
mism faded over China’s move to
tame its growth.
The Dow Jones industrial average
gained 18.24 points, or 0.16 per cent,
to end at 11,428.56, well off its intra-
day high of 11,480.03. The Standard &
Poor’s 500 Index inched up a mere
0.06 of a point to finish at 1,240.46.
But the Nasdaq Composite Index was
down 12.63 points, or 0.48 per cent, to
close at 2,624.91.
The lightly traded session came as
some technical indicators suggested a
near-term pullback could be in the
cards. About 7.32bn shares traded on
the New York Stock Exchange, the
American Stock Exchange and the
Nasdaq, well below the year’s daily
average of 8.62bn.
Stocks earlier had risen as opti-
mism China would not aggressively
head off growth boosted energy and
materials stocks. Companies that sell
oil, like Chevron Corp, and those that
make mining equipment, like
Caterpillar, drove the Dow higher. At
the close, both Caterpillar and
30 Nov Chevron were up 1.5 per cent or more.
CITYA.M. 14 DECEMBER 2010
In addition, Jared Chase, a senior
managing director at State Street
Global Advisors, will take up the role
of chairman of Rexiter.
Centaur Fund Services
Gavan McGuire has joined the alterna-
tive investment administrator as its
new head of business development.
McGuire, who has 13 years’ experience
in fund administration, will be in
charge of driving business from
London and will be joining a team that
includes Ronan Daly, Karen Malone
and Eric Bertrand.
RBC Capital Markets
Royal Bank of Canada has added Mike
Carter and Robin Mackie to its Capital
Markets division via the acquisition of
their boutique financial advisory firm,
Loudoun Capital Partners.
Mackie and Carter will be in charge
of the European financial instruments
group.
Previously, they have both worked
at Lehman Brothers Europe for over a
decade each.
In addition, RBC Capital Markets
has made six hires in its equity ana-
lysts division, increasing its coverage
to nine sectors. The hires are Gordon
Aitken, Olivio Peters, David Greenall,
Andrew Brooke, Andrew Carter and
Damian Brewer.
+44 (0)20 7557 7245
morganmckinley.com
The PHLX oil service index rose 1.3 per
cent.
Investors had feared China would
raise interest rates to slow growth,
but instead it merely increased the
amount of extra capital top banks
must hold, a less severe move by the
world’s second-largest economy.
“Even though [China] isn’t fueling
us 100 per cent, if it was to tighten,
that would mean less strength in a
weak recovery here,” said Jeffrey
Friedman, senior market strategist at
Lind-Waldock.
Healthcare stocks jumped briefly
on news that a Virginia judge invali-
dated a key part of the March health-
care overhaul championed by
President Obama, but these shares
quickly fell back. After rising as much
as 1.6 per cent, the Morgan Stanley
Healthcare Payor Index slipped 0.3
percent.
The S&P 500 reached another high
for the year yestersday, advancing to
an intraday peak at 1,246.73. The
index’s steady climb since breaching
1,228 -- a key retracement of the 2007-
2009 bear market losses -- has been
judged a sign of further gains, even as
the relative strength index suggests
stocks are nearing an overbought con-
dition.
“We’ve had a decent run up over
the last week or so and the market
started out strong, but we saw a bit of
profit-taking at the end,” said Giri
Cherukuri, head trader at Oakbrook
Investments LLC.
CITYA.M. 14 DECEMBER 2010 Markets & Investment 19

LONDON’S TOP 250

Company Name Closing Price Price Change 52wk high 52wk low Company Name Closing Price Price Change 52wk high 52wk low Company Name Closing Price Price Change 52wk high 52wk low Name Closing Price Price Change 52wk high 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)Company (p) (p) (p) (p)

3i Group 315.75 1 326 250 Cobham 206 -3.5 276 192.25 ITV 74.25 1.25 74.25 48.25 Rolls-Royce Group 630 -9 654.5 473.5
3i Infrastructure 121.5 3 121.5 97 Colt Telecom 126.5 -1.25 142.5 109 Jardine Lloyd 608 2.5 609.5 453.75 Rotork 1762 42 1895 1145
A.B. Foods 1104 13 1136 804.5 Compass Group 573.5 -4 588.5 425 John Wood Group 521 32.75 521 288 Royal Bank of Scot 41.75 0.25 58 28.5
Aberdeen Asset.Man. 202.25 -2.5 205 112.75 Cookson Group 638 20 638 367.5 Johnson Matthey 1960 24 1973 1446 RSA Insurance Grp 127.5 0.5 136.5 114.75
Admiral Group 1556 0 1693 1110 Croda International 1521 10 1610 751 JPM Flem.Emerg Mkt. 612 2 621 450.5 SABMiller 2179.5 24.5 2179.5 1650
Aegis Group 141.75 -0.75 145.5 103.5 Daily Mail & Gen 548 1.5 567.5 404 Jupiter Fund Man 295 0 310 180.25 Sage Group 283 1 289 220
Afren 142 -1 143.25 79 Davis Service 418.25 0.5 435 360.25 Kazakhmys 1592 63 1630 965 Sainsbury (J) 376 1.5 395 313
African Barrick Gold 602 -1 670 503 De La Rue 838.5 4 1005 549.5 Kesa Electricals 166.75 -1.75 174 99.25 Schroders 1791 12 1791 1116
Aggreko 1518 7 1685 810 Debenhams 71.25 0.5 84 53 Kingfisher 253.5 -0.25 259 198.5 Schroders NV 1418 9 1418 929.5
Alliance Trust 372 2.75 372 293.5 Derwent London 1557 11 1605 1208 Ladbrokes 127.5 -0.5 162.75 123.5 Scot.& Sth. Energy 1136 11 1198 1010
Amec 1138 23 1155 733.5 Dexion Abs 139.25 0.75 148 131.25 Lancashire 554.5 18.5 647 422.25 Scottish Mortgage 703 5.5 703 475
Amlin 400.5 2 433 357.25 Diageo 1173 -1 1193 1000 Land Securities 663 2 696.5 545 SEGRO 288.5 0.5 352 250.25
Anglo American 3053.5 26 3062 2254 Dixons Retail 26 0 38 23.75 Legal & General 98.75 -0.5 106.25 69.75 Serco Group 565.5 -7.5 651 494.25
Antofagasta 1543 46 1543 761 Domino’s Pizza 527 1 552.5 287.5 Lloyds Banking Grp 68.75 0.5 77.5 46.5 Severn Trent 1430 6 1468 1047
Aquarius Platinum 349.5 1.25 458 227 Drax Group 376 -9.75 444 326.25 Logica 124.5 1.5 148 101.75 Shaftesbury 455 8 460 349.25
ARM Holdings 397 1 414.5 169.75 DS Smith 209.5 1.25 210 104 London Stock Ex. 805.5 -1.5 812.5 544 Shire 1487 6 1567 1174
Ashmore Group 359.25 -2.75 383.75 218 Dunelm 549 1 549 325.25 Lonmin 1885 28 2157 1355 SIG 120.75 -0.25 137.75 90.75
Ashtead Group 160 4.5 160 71 easyJet 430.5 7.25 496.5 341.5 Man Group 286.25 1.25 327.5 202 Smith & Nephew 645.5 -5 696.5 537.5
AstraZeneca 3051.5 41 3385 2732 Edin.Inv.Tst. 447 2.5 464.25 351.5 Marks & Spencer 379.75 1.75 427.5 323.5 Smiths Group 1260 5 1285 954
Atkins (WS) 699 -11.5 792.5 556.5 Electrocomponents 265 0.25 279.5 161.75 Meggitt 364.25 4.5 367.5 242.5 Soco International 366.5 1.5 484.25 292
Autonomy 1404 27 1975 1271 Enquest 137 -0.75 146.5 89.25 Melrose 290 -1 304.25 162 Spectris 1267 53 1267 691.5
Aveva Group 1587 4 1589 951 Essar Energy 580 1.5 580 383 Mercantile Inv Tst 1072 17 1072 822.5 Spirax-Sarco 1872 20 1904 1096
Aviva 395 3.5 423.5 294.25 Eurasian Nat Res 979 14 1266 818 Michael Page 501 1.5 513.5 346.5 Spirent 151.5 1.5 160.25 94.5
Babcock International 548.5 -1.5 635 492.75 Euromoney Inst. 709 -13 727 414 Micro Focus 399.25 13 546.5 276 Sports Direct 146.5 0.5 152.75 92.25
BAE Systems 330.5 0 388.75 294.75 Experian Group 785 8.5 789 572 Millennium & Cop. 545 -0.5 570 351.5 St James’s Place 278 0 292 204.25
Balfour Beatty 312.25 6 312.25 229.75 Ferrexpo 370 9 396 179.5 Misys 296.5 1 304 200.5 Stagecoach Group 204.25 -1 224 160.75
Barclays 273.25 1 383.25 255.25 FirstGroup 390 0 426 336 Mitchells & Butlers 358.75 1.5 359 247.5 Standard Chartered 1764.5 2 1950 1351.75
Barratt Development 87.25 -2.25 142 70 For.&Col.Inv.Tst 303.5 2.5 303.5 251.5 Mitie Group 229.75 6.5 241 188.75 Standard Life 212 -0.75 236 173
BBA Aviation 216.5 0.25 217.25 155.5 Fresnillo 1594 61 1605 669.5 Mondi 491.25 -3.5 557.5 323.75 Supergroup 1630 10 1638 535
Bellway 636.5 -13.5 826 511 G4S 250 -2 283.5 237.75 Monks Inv.tst. 360.75 5.25 360.75 265.5 TalkTalk 164 -1 167 108.5
Berkeley Grp Hldgs 885 -26 932.5 742 Genesis E.m.f. 536.5 5 542.5 399 Morrison (Wm) 269.25 -0.75 306.25 257.5 Talvivaara Mining 548 13 581 342.5
BG Group 1313.5 10.5 1333.5 984 GKN 209 2.5 210.5 102 Murray Int.Tst 937 12.5 937 720 Tate & Lyle 544 11.5 544 388.75
BHP Billiton 2524 56 2524 1684.5 GlaxoSmithKline 1253 3 1339.5 1095 National Express 228.25 0.75 259.5 182.25 Taylor Wimpey 28.25 -0.75 44 22.25
BlackRock Mining 790.5 20 790.5 492 Great Portland Est. 354.75 0.75 364 268.5 National Grid 554 6.5 613.25 484.25 Telecity Group 502 8.25 532.5 357
BlueBay 484.5 1 489.25 258 Greene King 480 2 480 376.25 Next 2023 -7 2344 1817 Templeton Emrg. 655 1 685 471.5
BlueCrest AllBlue 173 0 174.5 152 Halfords Group 450 3 550 372.75 Northumbrian Water 332 1 361.5 252.75 Tesco 432 4.25 454.5 377.5
Booker Group 60.25 1 60.25 38.75 Halma 360.75 1 360.75 223 Ocado Group 162 1 170 123.5 Thomas Cook Group 185 -1.5 272 171.75
BP 458.25 3.25 655.5 303 Hammerson 413 2.5 434.5 336.25 Old Mutual 119.75 0.25 145.25 97.25 Travis Perkins 972 14 972 664.5
Brit Insurance 1042 5 1045 724 Hargreaves Lansdown 546 7 546 273.5 PartyGaming 235.5 0 334.5 206 TUI Travel 238 5.75 308.5 190
British Airways 278 3.75 286 184.25 Hays 122 0 123.5 88.5 Pearson 1016 5 1051 855 Tullett Prebon 375 -3 417.25 262
British Amer.Tob 2377 -2 2464.5 1926 Henderson Group 132 4.75 151.75 112.75 Pennon Group 630.5 0.5 639 483 Tullow Oil 1239 7 1369 991.5
British Empire Tst 498.5 6 498.5 394 Heritage Oil 424 3.5 581 296.75 Persimmon 407 -11 507.5 336.5 UK Commercial Prop 79 0.75 85 72.75
British Land 510.5 2.5 520 418.25 Hikma 812.5 4.5 812.5 509 Petrofac 1493 50 1540 876.5 Ultra Electronics 1667 2 1895 1265
Britvic 476.5 2 518 379 Hiscox 369.5 7.75 370 303 Petropavlovsk 1136 -22 1365 852 Unilever 1919 25 2015 1688
Brown (N.) Group 300 -1.75 301.75 206.5 Hochschild Mining 620 15 658 234 Phoenix Group Hldgs 637 -4 758 557.5 United Utilities 597.5 3.5 628.5 488.25
BSkyB 735 0 736 524.5 Home Retail Group 201 -2.75 302 199.5 Premier Farnell 278.5 0.5 304.5 171.5 Utd Business Media 673.5 7 682.5 409.75
BT Group 183.5 2.25 183.5 110 Homeserve 454.5 6.25 487.5 322.75 Premier Oil 1919 11 1938 1017 Vedanta 2338 63 2934 1839
Bunzl 707.5 -2.5 777 616.5 HSBC Holdings 665.5 2.5 740.5 596.25 Provident Financial 839.5 14 974 728.5 Victrex 1414 -26 1442 788
Burberry Group 1119 11 1156 566.5 Hunting 718 13 718 439.5 Prudential 655 -4 659 487.5 Vodafone Group 168.5 3.25 175 129.5
C&W Comms 51.25 1.5 63.75 44.25 ICAP 531 7 531 294 PZ Cussons 393 4 409 234.75 Weir Group 1779 15 1861 676
C&W Worlwide 69.5 1.25 100 60.5 IG Group 517 6 553 362.5 QinetiQ Group 128 0 167 96.75 Wellstream Holdings 790 43 790 436
Cairn Energy 413.5 2.5 493.25 303.5 Imagination Tech 359.5 -4.5 441.75 215 Randgold Res 5755 150 6655 4209 WH Smith 516.5 2.5 529.5 398.25
Caledonia Inv. 1902 20 1902 1511 IMI 909 9 948 504.5 RDS ‘A’ 2066.5 15.5 2100.5 1624 Whitbread 1790 27 1812 1266
Capita Group 679 -4.5 826 635.5 Imperial Tobacco 1895 -3 2154 1753 RDS ‘B’ 2053 18.5 2064.5 1554 William Hill 165.5 -0.5 216.5 155.5
Capital & Counties 148 -0.5 157 100 Inchcape 347.5 -3.25 368 237 Reckitt Benckiser 3573 64 3655 3037 Witan Inv Trust 505.5 6 505.5 410
Capital Shop Centre 393.5 3.5 411.5 301 Informa 403.5 -6.5 448 295 Reed Elsevier 524.5 5.5 563 460.5 WOLSELEY 1880 52 1880 1166
Carillion 369.5 -1.25 370.75 273 Inmarsat 681.5 1 821 606.5 Regus 80 -1.5 120 66 WPP Group 775 6 776.5 572.5
Carnival 2740 -17 2920 2037 InterContinental Htl 1231 14 1231 867 Renishaw 1259 34 1259 516.5 Xstrata 1461.5 20.5 1461.5 845.75
Catlin Group 362 4 393 320 Intermediate Cap.Grp 322.25 1 351 240.5 Rentokil Initial 98.25 1.25 138.5 87.75
Centamin Egypt 168.5 0 197 106.75 International Pers Fin 352.25 9.25 352.25 183.25 Resolution 236 0.25 349 211.25 LONDON TOP 250 BY MARKET CAPITALISATION
Centrica 326 1.5 346 264 International Power 419.75 0.75 436.75 284.5 Rexam 311 7.5 346.75 272.5 POWERED BY
Charter 771.5 11 848.5 567 Intertek Group 1900 15 2000 1150 Rightmove 764.5 9 810 471.75
Chemring Group 3029 60 3663 2598 Invensys 334.75 2.75 349 230.25 Rio Tinto 4479 82 4505 2812
Close Brothers 860 -1.5 861.5 664 Investec 496.75 -1 562 417.75 RIT Capital Partners 1203 9 1210 969 www.digitallook.com
 20 Markets & Investment
DESPITE ALL
US EQUITIES
STILL CLIMB
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
T
HERE has been a mixed reaction to the
news that Congressional Republicans and
President Obama have reached a deal to
extend the Bush tax cuts. While a number
of Democrats have expressed outrage that the
cuts will continue for everyone, the package
should be accepted. This helped lift US equities
and by extension most other global stock indices.
Bond investors were less enthusiastic and
yields rose sharply last week. While many ana-
lysts saw this as a reaction to improved growth
expectations, others were less sanguine. After
all, with the unemployment rate heading back
towards 10 per cent and the housing market
close to a double-dip, it could be argued that the
American economy is a long way from making a
meaningful recovery.
Some argue that higher Treasury yields are a
response to the inevitable fiscal deterioration.
The deal struck last week is seen as a cowardly
political fudge. Without any reduction in govern-
ment spending, the tax cut extension will only
add to debt. And if the economic outlook has
improved so much, the Fed should be considering
winding down quantitative easing, not starting a
debate about renewing it.
There is a very real danger that US state and
municipal debt issues will be the next problem to
require a bailout. California, Illinois and New
York are among the most indebted and vulnera-
ble states. There is evidence that investors are
not only balking at the idea of buying fresh
municipal bonds; they are actively selling.
Despite these concerns, the S&P 500 has bro-
ken back above significant resistance at 1,230.
This marks the 61.8 per cent Fibonacci retrace-
ment of the move from the October 2007 high
to the March 2009 low. It now seems to be con-
solidating above this level, which means there is
a good chance that the index can build on this
move and push higher into the year-end. So
although last week’s surge in US bond yields has
unnerved some, the bulls are confident that it
won’t undo another positive year for equities.
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CD03UK.115.080310
Next year will be unpredictable
Anticipating the
kinks in the road
What to watch next year, by Daniel Knowles
1 The Chinese economy has been driving the
world’s growth for the last couple of years, but
some economists are beginning to worry that
it is overheating. Inflation hit 5.1 per cent in
November according to the latest figures, with
price increases especially intense in coastal
cities. The Chinese government has been trying
to damp down property speculation, while on
Friday, it increased banks’ reserve requirements
in an attempt to suck liquidity out of the sys-
tem. So far, however, it has avoided raising
interest rates. With Chinese savers seeking out
ever more speculative investments to beat
inflation, more monetary tightening may be on
the way. CFD traders should watch out for
knock-on effects – mining equities, energies
and metals in particular are vulnerable.
2 Thanks to the uncertainty surrounding sov-
ereign solvency in the European periphery,
European equities have been sold heavily over
the last few months. With fears assuaged but
not yet eliminated, it is probably too early to go
long on peripheral equities, while German one
Picture: GETTY
are possibly a little too popular. Nicely in the
middle though are French and Italian stocks.
Analysts at UBS describe those countries as
“forgotten, but not rotten”, with historically
low price-earnings ratios as a good reason to
go long. AlphaValue, a research firm, reckons
that all of the French shares it tracks are
undervalued, while 22 out of 25 Italian ones
are, offering plenty of potential for CFD traders
to profit.
3 Copper has had a remarkable year. Thanks
to gargantuan Chinese demand, the price has
risen by 35 per cent since last spring to $9,215
a tonne yesterday. As stockpiles dwindle, many
analysts expect that to continue. Chinese
demand snapped up in November, increasing
by 29 per cent month on month according to
analysts at RBS. RBS also points to new physi-
cal copper funds as a potential driver of
demand. Goldman Sachs analysts expect prices
to increase to $11,000 a tonne next year.
Chinese tightening might lead to disappoint-
ment, however, so CFD traders ought to be
careful.
OPEN AN ACCOUNT WITH GFT
AND WE’LL MATCH
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Offer ends 31 December.
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CITYA.M. 14 DECEMBER 2010
THE
TIPSTER
THE OIL PRICE RALLY
IS NEAR TO ITS END
W
TI crude oil rallied some 150
points yesterday morning to
highs around $89.40 on the
back of relief over China not
raising rates and positive demand fore-
casts. The technical picture is showing
signs of crude topping out around this
level and it may well be worth taking the
short side of the market for this week on
rallies back around $89.20 to $89.40.
Crude fell for the first week in three last
week to test the $87.30 area and that
should be the first target again this week.
Spread Co offers a spread on January US
Crude of $88.55–$88.59.
British retail sales figures for
November are due out on Thursday.
There’s no real expectation of any sur-
prise though and with the worst of the
weather not hitting the country until
December, any impact from the snow
should be minimal. However, retailers
seem generally confident that this
Christmas will be no worse than last, so
any early indications of weakness could
see investors eager to sell. IG markets
offers a spread on the UK retail sector
index of 1,718-1,722.
Sports Direct releases interim results
on Thursday and investors will hope that
their numbers can confirm the good
share price strength they’ve seen so far
in 2010. The stock is up 50 per cent so
far this year as the outlook for the retail-
er has been improving. With the combi-
nation of a successful Ashes series down
under so far and the Christmas shopping
season well under way, the outlook
remains strong for the share price.
Capital CFDs quotes a price of 144.0p-
145.2p.
The US dollar got hammered hard on
Monday with euro-dollar rallying some
200 pips to test the $1.3400 region and
sterling-dollar breaking through last
week’s highs at $1.5861. Normally euro-
dollar would be an interesting sell
around this level but with markets thin-
ning out on the run up to Christmas, the
euro could well keep rallying to $1.35 or
even $1.36 so a short sell, although
tempting, might turn out to be painful.
Spread Co offers a 0.8pt spread on
euro-dollar of $1.33801–$1.33809.
Daniel Knowles
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 Lifestyle | Health & Grooming
22 CITYA.M. 14 DECEMBER 2010

A new haven for gentlemen

FIT IN
THE CITY A suave men’s area at
BY LAURA WILLIAMS Harrods mixes old-
FITNESS & DIET EXPERT school grooming with
wi-fi and whisky,
How to keep writes Timothy Barber

the pounds off D

ESPITE the growing popularity of
beauty products aimed at men, the
prevailing wisdom in the grooming

at Christmas
1. CHOOSE YOUR POISON WISELY: Unless
you want an overhang like Johnny Vegas, go
easy on the beer. An eight pint binge means
you’re taking in a whopping 1,600 empty
calories – that’s the calorie-equivalent of a
very large takeaway. Spirits with diet drinks
and champagne make for better waistline
choices.
industry is that the majority of
bloke-orientated creams, cleansers,
colognes and aftershaves are bought for
men by women. Some retailers put that
figure as high as 70 per cent. While we’re
more used to slathering ourselves in
lotions and spraying on a bit of decent
scent than we used to be, it seems we’d
still rather have someone else pick it off
the shelves for us.
“It was first the room’s history, according to Quest. “It
was originally called the Gentleman’s
Well, head into any Boots and you can
see why. If you can find the male grooming
called the Lounge in the 1930s, when it was an area
where fashionable gentlemen would meet
stuff between aisles of make-up, hair-care
items and women’s sanitary products, the
Gentleman’s their friends to talk about politics and
smoke cigars,” she says. ing products.

2. BACK AWAY FROM THE BUFFET: Cheese

straws, peanuts, sausage rolls – everything
on that buffet table has the potential to fast
track you to a plus size. Stick to crudités,
pretzels and chicken tikka if you don’t want
to gain a dress size from the office do alone.
3. AIM FOR A POST-PUD WORKOUT: Unless
you’re drawn to the Queen’s speech like a
moth to a flame, do something physical after
lunch. Wrapping up warm may not seem as
tempting as polishing off the Quality Street,
but the boost in oxygen you’ll get to the
brain from heading outdoors will make you
feel far livelier than collapsing in the arm-
chair. Even if you can’t be bothered to ven-
ture outside, get moving somehow – a game
of Twister’s better than nothing.
4. GET STUCK INTO THE TURKEY: Not only
is turkey far lower in calories than other
meat, it’s also an excellent source of trypto-
phan, an essential amino acid that can help
elevate your mood and improve sleep. Load
up on vegetables, too.
5. HAVE A JANUARY EMERGENCY PLAN: If
all good intentions go to pot, have an emer-
gency plan. Book a gym induction, buy every
celebrity fitness DVD going, dust off the Wii
Fit and ensure that all evils (anything high in
cals) are banished from your desk drawer by
January 1st.
laura@laurawilliamsonline.co.uk
selection is generally pitifully small – a few
shaving gels, a small choice of stuff to stick
Lounge in
in your hair (dear God, hair “putty”, any-
one?) and some hardly-exciting deodorants.
the 1930s
No wonder it’s the kind of place you make a
lighting dash for once your deodorant,
when men
shaving cream and toothpaste have all run
out, and not before.
would meet
But given the right environment, men
can browse and spend on grooming stuff
to talk about
like it’s going out of fashion. It actually
appeals to the geeky collector in us –
politics
according to Annalise Quest, head of beau-
ty at Harrods, men who buy their own
and smoke
scent actually buy more and wider varieties
cigars”
than women, who tend to stick to their one
or two favourites.
GROOMING TREASURE TROVE
Thus the launch of the new Gentleman’s
Lounge in the Harrods basement. It’s a
plush-as-you-like treasure trove of luxury
grooming products in the area formerly
occupied by the Green Man pub.
As well as lavish displays of colognes,
aftershaves, creams, lotions, old-fashioned
razors and brushes, and even grooming
gadgets, it has a lounge area and bar where
fine booze and wi-fi are the order of the day
(the team behind Whisky Mist will be run-
ning the show there from early next year).
In other words, it’s the perfect place to
come and relax while your other half hits
the rest of the shop.
That’s actually an idea that goes back to
Now cigars are out and wellbeing is in,
but wellbeing of a clubby, elegantly mascu-
line, beautifully-packaged persuasion.
Polished wood veneers, gleaming display
cabinets and the original Art Deco trap-
pings of the building all contribute to an
atmosphere of old-fashioned, gentlemanly
excellence. The Lounge also incorporates
the Refinery, the ultra-swish grooming
salon providing wet shaves, haircuts, mas-
sages and other body treatments, which
also sells a fine range of rare, classy groom-
GROOMING PRODUCTS FOR GENTS | WHERE ELSE TO GO
TAYLOR OF OLD BOND STREET The grand old
man of luxury grooming in London (it was
founded by Jeremiah Taylor in 1854), Taylor’s
brushes, bone-handled razors, shaving creams,
fragrances and hair products are the essence of
vintage St James’s style. 74 Jermyn Street,
SWIY 6NP, www.tayloroldbondst.co.uk
CARTER & BOND An apothecary of old-fash-
ioned, obscure, magnificently-packaged groom-
ing brands – with names like Brave Soldier,
Baxter of California and Jacomo – in a shop
which also houses a delightful array of retro
boys’ toys, watches and vintage prints, across
“Many of our clients get their first
appointment via a woman, who books
them in as a present,” says Refinery manag-
er Deborah Gayle. “Once they’ve experi-
enced it they get over that fear factor, and
realise they can feel at ease getting pam-
pered a bit, and they keep coming back.”
In Knightsbridge, at least, it looks as
though more men will be making their
grooming debuts under their own steam.
The Gentleman’s Lounge, Harrods, SW1X 0LZ.
www.harrods.com
the road from still-fashionable west London gas-
tropub, the Westbourne. There’s a terrific wet-
shave/haircut service on Wednesdays and
Sundays. 83 Westbourne Park Rd, W2 5QH.
www.carterandbond.com
MURDOCK LONDON A slightly more street-
smart, 60s-influenced version of London cool,
Murdock’s three venues – in Mayfair, Shoreditch
and West End department store Liberty – pro-
vide shaving and hairdressing services, as well
as a range of high-grade products by the likes of
Acqua di Genova and Pino Silvestre. 340 Old
Street, EC1V 9DS www.murdocklondon.com

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TIMOTHY BARBER
Left, Emma Williams Howard “he wrote the Blackadder music”
and Michael Xavier in Goodall has turned it into a musical that’s had
Love Story critics falling over themselves to praise.
Emma Williams and Michael Xavier are the
preppy young lovers destined for tragedy,
with a book by Stephen Clark.
Until 30 April, Duchess Theatre, Catherine St,
WC2B 5LA. Tickets from £25 from
www.lovestoryonstage.com
SPITALFIELDS WINTER FESTIVAL
Music as varied as baroque ensembles, Italian
madrigals, classical choir music, folk and jazz
LOVE STORY – THE MUSICAL are among the offerings over a number of
It’s extraordinary in this day and age to think
that Love Story, the schmaltzy 1970 film that
concerts and recitals in Spitalfields this week,
including lunchtime concerts. Today
gave the world Ryan O’Neal in a duffel coat, Cambridge’s Caius College Choir & Consort
and the phrase “love means never having to showcases Monteverdi madrigals at Christ

IT CAN BE RESTORED! say you’re sorry,” swept the Golden Globes

and caused grown adults to weep into their
popcorn. More extraordinary still that
Church Spitalfields. Until Saturday, various
venues. For more information, see www.spi-
talfieldsfestival.org.uk
CITYA.M. 14 DECEMBER 2010
Flower admits to Anderson gamble
England coach concedes
globe-trotting bowler may
not be fit for third Test,
writes James Goldman
ENGLAND coach Andy Flower admits
he will be taking a gamble on the fit-
ness of James Anderson as the fast
bowler prepares to spearhead his
side’s attack in the third Ashes Test,
having undertaken two long-haul
flights in the space of four days.
Anderson, who has taken eight
wickets in the series so far, flew home
on Wednesday to be at the birth of his
second daughter and was only reunit-
ed with the rest of England’s touring
party on Monday.
Flower conceded he could not be
certain that the 28-year-old would
have recovered fully from two 24-
hour flights when England and
Australia renew hostilities in Perth
on Thursday, but hopes his decision
to allow his premier strike bowler
time off won’t backfire.
“It is not the ideal preparation but
we will try to get the right amount of
rest into him over the next few days,”
Flower said.
“In competition, you can’t always
get perfect preparation. You get
things that can go wrong with illness,
family or injuries. There are all sorts
of distractions, but this is just one of
those things you have to deal with.
“James will have the same amount
of practice as the rest of the guys.”
As well as concerns over his open-
ing bowler, Flower has also had to
remind his stellar batsman, Kevin
Pietersen, who returned to form in
Adelaide with a double ton, of his
responsibilities following the fine he
received for speeding in a yellow
Lamborghini arranged for him by for-
mer Australia spinner Shane Warne.
Pietersen was also reprimanded for
his outburst on Twitter aimed at the
Adelaide groundstaff, whom he
branded “pathetic”, before the sec-
ond Test.
“The tweet has been dealt with,
SPORT | IN BRIEF
Lampard expects to win league
FOOTBALL: Frank Lampard is convinced
floundering Chelsea will retain their
Premier League title if they replicate
their performance in Sunday’s 1-1 draw
at Tottenham. He said: “If we play with
the spirit we showed there, I have no
doubt we’ll win the league, because
we’ve got the quality in our team.”
Win sends Higgins back to No1
SNOOKER: John Higgins’ victory at the
UK Championship has taken him back to
the top of the world rankings. It is the
Scot’s first major tournament triumph
since serving a six-month ban for bring-
ing the game into disrepute.
Butt insists career isn’t over
CRICKET: Former Pakistan captain
Salman Butt still expects to play for his
country again despite spot-fixing allega-
tions that are threatening to end his
career. Butt said: “I still remain positive
and I know what I’m made of.”
Boks duo’s B samples positive
RUGBY UNION: South Africa’s Chiliboy
Ralepelle and Bjorn Basson are facing
bans after B samples confirmed their
positive drugs tests. The duo tested posi-
tive for the banned substance methyl-
hexaneamine after last month’s 23-21
win over Ireland.
Anderson rejoined the England squad on Monday
and Kevin has been reminded of his
responsibilities,” said Flower. “The
speeding fine is a personal issue that
bears little relation to anything that
happens in the team.”
Flower (inset) also confirmed he
West Ham linked to Allardyce sacking
▲
FOOTBALL
BY FRANK DALLERES
BLACKBURN captain Ryan Nelsen last
night expressed his dismay at the
shock sacking of manager Sam
Allardyce, saying he was “devastated”
by the actions of the club’s new
Indian owners.
Allardyce was shown the door
despite Rovers being five points above
the Premier League relegation zone
in 13th place, amid rumours of con-
flict with the Ewood Park hierarchy
over transfer policy.
And in a fresh twist to the unex-
pected move, Allardyce is now being
tipped to replace Avram Grant at
West Ham after a flurry of unusual
betting activity.
“I am devastated for Sam. He had
an absolutely fantastic relationship
with all of the players,” said Nelsen.
“Everyone respected him. He took
the club out of the doldrums really.
We were in massive trouble with no
money. He solidified us and put us
into a top 10 position, and again he
did it on a shoestring.
“I’m just getting over the shock of
it. We’ve got to get over it, but at the
Picture: ACTION IMAGES
has a clear idea of the seamer he will
select to replace the injured Stuart
Broad – Surrey’s Chris Tremlett is
thought to be the favourite – but no
decision will be formally announced
until the morning of the Test.
moment I want to say, and I can
speak for nearly all the players
I’m sure, that they will be devas-
tated. He was a very likeable
character.”
The former Newcastle
and Bolton boss (right)
released a statement via
the League Managers’
Association declaring
his astonishment at
the dismissal.
“I am very shocked
and disappointed to be
leaving Blackburn
Rovers,” said Allardyce. “I
am extremely proud to
have managed this club
and I enjoyed a fantas-
tic relationship with
the players, my staff
and the supporters.”
Blackburn’s owners,
Asian poultry giant Venky’s,
acted in the wake of
Sunday’s 2-1 defeat to
Bolton but said the deci-
sion had not been knee-
jerk. “We have taken this
decision as part of our
wider plans and ambi-
THE ALL-ROUNDER |
THE GOSSIP FROM DOWN UNDER
HAURITZ’S GARAGE SALE
Sportsmen these days often resort
to a very 21st century method of
venting their frustration in the form
of Twitter rants. The world of social
media is clearly not for shunned
Aussie spinner Nathan Hauritz,
however, who chose to throw his
toys out of the pram, or more accu-
rately, his jumpers out of the
garage, in the form of a bizarre kit
sale. Hauritz has been strangely
overlooked for this Ashes series
and spent part of his weekend auc-
tioning off some of his Test kit in an
impromptu giveaway in Sydney. He
told stunned onlookers that he did
not play for his country any more.
BROAD ON THE AIRWAVES
Stuart Broad, ruled out of the rest
of the Ashes series with a side
strain last week, is to remain in
Australia as part of the BBC’s Test
Match Special team in Perth. Broad
tweeted yesterday, self-mockingly,
that he’d been employed specifical-
ly to make the tea for his former
skipper Michael Vaughan, also a
TMS expert summariser.
HUGHES PUNCH-
DRUNK BY BEER
Former Aussie Test
selector Merv
Hughes conceded
he was “blown
away” by Michael
Beer’s selection.
Hughes said Beer’s
name had not been
discussed before his
departure from the
panel in October.
NICE TO MEET YOU, TOO
Beer, himself, meanwhile, admitted
he will meet many of the Aussie
squad for the first time this week.
The 26-year-old, who has only five
first class matches under his belt,
met Ryan Harris and Shane Watson
in the Qantas Lounge in Brisbane.
tions for the club,” read a statement
from Rovers. “We would like to put
on record our thanks to Mr
Allardyce for his contribution to
Blackburn Rovers.”
Allardyce’s sacking came
just hours after some book-
makers reported a number
of large wagers on him and
Grant to be the next top
flight managers to leave
their posts. Grant is under
huge pressure at Upton
Park, with the Hammers
three points adrift at the
foot of the table and with
just one win from their last
11 league games.
Former Ajax and
Tottenham manager Martin
Jol was the favourite to
replace Allardyce last night,
while some speculation
linked Rovers with former
Argentina coach Diego
Maradona.
Venky’s, run by the Rao fam-
ily, publicly backed Allardyce
last month following the com-
pletion of their £43m takeover
of the club in October.
Sport 23
Results
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email sport@cityam.com
COMMENT
FRANK DALLERES
EVEN before Venky’s had complet-
ed their takeover of Blackburn last
month, their relationship with
Sam Allardyce looked destined to
be a fragile one.
From one of the Indians’ first
public utterances Allardyce learned
he would only be granted a £5m
transfer kitty and that his target
was merely to finish in the top 12.
While it may have pointed to
greater job security for Allardyce, it
was hardly what an ambitious man
yearning to bolster his squad would
have wanted to hear.
His sturdy record – Rovers are
13th – is no reason for his depar-
ture, so suspicion rests on a falling
out behind the scenes. With sports
agency Kentaro said to be advising
the new owners on transfers, there
was potential for tension.
And with the looming January
window demanding boardroom
strategy be drawn up now, it was an
even more combustible brew.
 Sport
24 CITYA.M. 14 DECEMBER 2010

BLACKBURN SACK
SAM ALLARDYCE
BUT BOSS LINKED
TO HAMMERS: P23

Park strife as NEMESIS: PARK

STRIKES AGAIN

Arsenal falter
Ji-Sung Park’s winner last night
was no one-off occurrence; he
has terrorised Arsenal time and
time again since joining United.

MANCHESTER UTD 1 The Korean applied the coup de grace as

United completed a Premier League dou-
ble over Arsenal last season, Park scoring
ARSENAL 0 the third in a 3-1 win at Emirates Stadium
▲

FOOTBALL
BY JAMES GOLDMAN
ARSENAL manager Arsene Wenger
believes his team are still capable of
sustaining a challenge for the
Premier League title despite seeing
Manchester United ominously
climb back to the summit, with a
game in hand, following last
night’s defeat at Old Trafford.
Ji-Sung Park’s splendidly impro-
vised header four minutes
before half-time proved the
difference and extended
Arsenal’s miserable
record against their
principal title rivals.
The Gunners have
now lost 10 and drawn
one of their last 11
games against United,
who could even afford to
miss a late Wayne Rooney
penalty, and Chelsea in all
competitions, but Wenger (inset)
believes it would be wrong to write
his side out of the title race on the
basis of those statistics.
“Calm down,” he said when
asked why his side consistently
struggle against the Emirates in a fortnight, where
elite. “You have to be Arsenal should be able to call on
realistic and objec- Cesc Fabregas and Robin van Persie,
tive and not reach who were only fit enough for
big conclusions. cameo roles from the bench here.
“It is a big frus- Despite an abundance of posses-
tration and a big sion, Edwin van der Sar was only
disappointment but seriously tested on one occasion,
what is important is from a Samir Nasri daisy cutter,
that we bounce back in which he pushed out in the direc-
our next game. Overall tion of Marouane Chamakh, but
on what I have seen tonight the Morocco striker could not force
there is no reason not to believe.” the ball beyond Nemanja Vidic.
Wenger will hope to regain the At the other end, Wojciech
ground lost last night when United Szczesny, 20, making an assured
travel to Chelsea on Sunday, while Premier League debut, saved well
the champions in turn visit the from Anderson and Rooney in the
Park’s goal moved United North London has proved a happy hunting
two points above Arsenal
ground for Park, who struck the opening
Picture: PA
goal as United dumped Arsenal out of the
second-half, but had no chance Champions League 3-1 in May 2009
with Park’s deft flick in the 41st
minute after Nani’s deflected cross
squirted across the penalty area.
Rooney blew the opportunity to
make the closing stages comfort-
able when he went for power rather
than placement following the
harsh award of a penalty against
Gael Clichy for handball.
United manager Sir Alex
Ferguson added: “We have a diffi-
cult game against Chelsea on As early as April 2006 Park was rippling
Sunday but it is also a very impor- the Gunners net, this time scoring the sec-
tant game. If our back four main- ond goal in a 2-0 win at Old Trafford as
tain their level of consistency we United finished runners-up to Chelsea
will have a chance.”
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