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What The Papers Said

A round-up of Sunday business stories

Sunday 16 May 1999 23:02 BST
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t The British Racing Drivers Club, consisting of some of the sport's most famous names such as Jackie Stewart, Damon Hill and Murray Walker, is planning a counter-bid to keep the British Grand Prix at Silverstone. This follows the announcement by Brands Hatch Leisure on Friday that it had signed an exclusive contract to host the event from 2002. Chief executive Nicola Foulston said at the weekend that Brands Hatch would be ready to host the race in time for 2002. The Grand Prix generates pounds 30m a year, including merchandising.

t Punch Taverns is close to raising US funds in backing for a bid to trump Allied Domecq's agreed pounds 2.3bn sale of its pubs to Whitbread. Punch is close to a deal with Texas Pacific to buy the 45 per cent of the pub company owned by Bankers Trust. Punch owns 1,800 pubs, and is poised to reveal its hand on Tuesday whenWhitbread is due to announce the terms of its deal to buy the 3,600 Allied pubs.

t Bass (reporting on Thursday) is poised to bid in competition to Whitbread's pounds 2.3bn offer for Allied Domecq's pubs. Bass has said it has adopted a "wait and see" approach; managers from the Bass estate have been visiting the Allied pubs. It is interested in the 2,003 managed pubs, and would look to sell on the 1,541 tenanted pubs - perhaps to Punch Taverns, which bought Bass's tenanted pubs in 1997.

t An anarchist group is threatening to bring the City of London to a halt on 18 June, the date of the Group of Seven summit in Cologne, in a protest against international capitalism. The City police have briefed security staff in banks to be on the alert for mass pickets and possible attempts to burst onto trading floors. There are reports that Oxfam shops have seen a surge in sales of second-hand suits.

t BSkyB is to reopen merger talks with Canal Plus, its French counterpart, as part of a rethink of his European strategy by Rupert Murdoch. If the merger with Canal Plus is blocked by regulators, News International could reduce or perhaps sell its 40 per cent BSkyB stake. Two weeks ago News Corporation - rather than BSkyB - bought the rights to televise Bundesliga football matches in Germany.

t M&S will reveal a new sales slump when it announces its results on Tuesday. The company issued a profits warning in January, and said pre- tax profits were expected to be between pounds 625m and pounds 675m in the year to 31 March. It is also likely to say sales have been running substantially below the previous year's levels.

t Mervyn King, deputy governor of the Bank of England, said in an interview that recent favourable influences bearing down in inflation, notably the strong pound and weak commodity prices, were beginning to wear off. His remarks follow a warning on Friday from Eddie George, the Bank's Governor, about the inflationary risks if sterling fell sharply.

t NTL, the American cable operator, will launch a challenge to BT in the British telephone market. It will offer cut price call rates, free digital TV later this year, and internet access through the television.

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