Shareholders back CYBG's Virgin Money takeover
Shareholders have backed Yorkshire Bank and Clydesdale Bank owner CYBG's £1.7bn takeover of Virgin Money with an overwhelming majority. The takeover, which is expected to be completed before the end of the year, will see Virgin Money's shareholders hold 38% of the group. The combination of the two FTSE 250 lenders will create a bank with six million customers and £83bn worth of assets.
Banks block cards following BA cyber attack
Barclays, Santander and Capital One have ordered new cards for customers whose details were stolen in a British Airways data breach. Other banks including NatWest, Lloyds, Nationwide and HSBC have said they will cancel compromised cards only if asked or if they spot suspicious activity.
Blackstone bags railway arches from Network Rail
Blackstone Property Partners and Telereal Trillium have struck a deal to buy the leaseholds of over 5,000 railway arches from Network Rail for £1.5bn. The Labour party has called for the deal to be halted, saying that the “highly irresponsible” transaction risked damaging thousands of SMEs.
RPC in takeover talks
Apollo Global Management and Bain Capital are weighing up takeover bids for RPC Group. The plastics packaging company said that it was in early-stage talks with both firms over a possible offer.
Deutsche Bank to keep thousands of employees in UK
Deutsche Bank has said it will move some staff abroad but plans to keep "a large number" in London. Deutsche’s Sylvie Matherat said she was confident that the UK and the EU would reach a deal in Brexit negotiations, although the bank is preparing for a hard Brexit by relocating some of its operations to Frankfurt. Meanwhile, Deutsche executives have made reducing the cost of issuing debt a top priority, amid fears the bank faces losing up to €200m in revenue a year.
UBS launches ethical investment product
UBS has partnered with Sustainalytics to launch a new World Bank-backed debt product linked to the global sustainability signatories index.
Citigroup late in the game to merge key investment bank units
The FT looks at the implications of Citigroup’s decision to overhaul the organisational structure of its investment bank.
Volvo shelves IPO ambitions
Volvo Cars has delayed its plans to float in Stockholm due to the tough automotive environment and global trade tensions. Chief executive Hakan Samuelsson told Reuters: “We have come to the conclusion that the timing is not optimal for an IPO right now.”
Aston Martin bolsters board ahead of IPO
Ahead of its float on the stock market later this year, Aston Martin has named several new board members. They include former Coca-Cola executive Penny Hughes, who will take over as chairman when the business goes public.
FMB calls for 'flexible immigration system'
The impending skills shortage will hurt housing delivery and slow down new builds, according to a new survey by the Federation of Master Builders (FMB) construction trade association, which says that 44% of its members now feel the skills shortage is a “major barrier” to building new homes. The survey revealed that a lack of available and viable land as the mostly common cited barrier to construction, and that almost two-thirds of builders felt opportunities for small-site developments were decreasing amid the tough finance and planning system climate.
City cannot be complacent, McGuinness warns
Catherine McGuinness, policy chairman at the City of London Corporation, warns that the City cannot be complacent despite the substantial progress made to raise standards across the sector. Recommendations made in the paper published last week by the Institute for Public Policy Research’s Commission on Economic Justice, she says, which the City of London Corporation funded, is a good starting point for the City to recognise that more work still needs to be done to create an economy that is fair, inclusive, and prosperous for all.
Finance firms could gain from VAT loophole
Philip Hammond is facing a multibillion-pound hole in his budget projections as City businesses use Brexit to reduce their tax bills. Treasury officials have warned that unless there is a change to the law after Britain leaves the EU, the government could lose £7bn in corporate VAT receipts. It is feared that after Brexit firms could take advantage of a loophole allowing financial services businesses to claim back domestic VAT for the services they provide to individuals and companies outside the EU.
Worldpay to join Lord Mayor on India trip
Worldpay’s director of government affairs, Jana Mackintosh, is expected to visit India with the Lord Mayor of London next month as the UK's finance industry ramps up its attempt to charm global leaders ahead of Brexit.
Aquis Exchange shacks up in Paris
London-listed cash equities trading platform Aquis Exchange has filed applications with French authorities ACPR and AMF to open an investment firm in Paris in preparation for Brexit.
Mobius rallies £200m for new trust
Mobius Capital Partners is to raise £200m for the Mobius Investment Trust through an Initial Public Offering in October.
LEISURE & HOSPITALITY
Game on for gamblers in US
Online gaming firm 888 has launched its 888sports brand in New Jersey and said it “paved the way” for the company to launch in more states in the future.
MEDIA & ENTERTAINMENT
Snap loses strategy chief Imran Khan as stock trades at record low
Snap has announced that chief strategy officer Imran Khan will depart after a replacement is hired in the coming months.
Legal funding giant closes in on £1bn float
Litigation funder Vannin Capital has confirmed it plans to go public in a listing that could value it at £1bn. The float is due to take place next month. The rising popularity of litigation financing has also seen London-based company Manolete Partners eye a potential listing this year.
Debenhams moves to reassure investors
Debenhams rushed out a statement on Monday to reassure investors over its finances. The retailer said profit will be £33m, compared with previous guidance of £35-40m, and net debt would be about £320m - giving it "significant headroom" on the £520m it was permitted to borrow under current loan agreements.
Stores count cost of card fee increases
The British Retail Consortium has said retailers were hit with a bill of almost £1bn last year for accepting cards after payment providers raised their fees.
Rugby bid set to be rejected
CVC Capital Partners is set to fail in its initial takeover attempt of Premiership Rugby, with a number of clubs expected to reject the offer at Tuesday's extraordinary meeting.
World Cup and warm weather boost economy
The UK economy grew by 0.3% in July, and by 0.6% over the three months to July, according to the ONS, the fastest pace in almost a year. "The dominant service sector again led economic growth in the month of July with engineers, accountants and lawyers all enjoying a busy period, backed up by growth in construction, which hit another record high level," said Rob Kent-Smith from the ONS.