Editor: Pat Williams. E-mail pwilliams@creditman.co.uk
John Arnold. E-mail jarnold@creditman.co.uk
Site: Business Credit Management UK
URL: http://www.creditman.co.uk
Issue: Vol 4 Issue 24
Dated: 18 June 2000
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKCHAMBERS RESPOND TO EARNINGS DATA
The British Chambers of Commerce said last Wednesday that the latest earnings data justify the June decision to keep interest rates on hold.
Chris Humphries, Director General of the British Chambers of Commerce (BCC) said:
"With growth in average earning subsiding, and signs that Sterling's recent depreciation poses no immediate threat to inflation, the Bank was clearly right to keep interest rates on hold in June.
"Manufacturers continue to be squeezed by rising raw materials costs and fierce price competition and they need time to consolidate and pull back their competitiveness. In the current economic climate we would want to see Sterling down to a level well below DM3 before any further increase in interest rates."
The ILO unemployment rate in June was 5.7 per cent, down from 5.9 per cent in the preceding three months and from 6.2 per cent a year earlier.
Preliminary estimates show that the claimant count fell by 8,600 in May 2000.
The headline rate of growth of average earnings in April was 5.1 per cent, down from 5.7 per cent in March.
EARNINGS AND PRICES DATA SUPPORT MPC DECISION TO LEAVE RATES UNCHANGED - CBI
The Confederation of British Industry said that the latest earnings and retail price statistics support the MPC's judgement in leaving interest rates unchanged. It said that rates should stay on hold again next month.
Kate Barker, CBI Chief Economic Adviser, said: "With pay pressures easing and manufacturing activity faltering, a rise in interest rates next month would be most unwelcome. The continuation of job losses in manufacturing remains a key concern."
BYERS ANNOUNCES FURTHER MEASURE TO INCREASE COMPETITION IN THE NEW CARS MARKET
Trade and Industry Secretary Stephen Byers on the 12 June took another step in helping UK consumers obtain a better deal when buying new cars from dealers and announced steps to protect the mobility scheme for the disabled.
Mr Byers published a draft of the Order, which will benefit consumers by bringing about greater competition in the supply and selling of new cars. This should mean lower prices and increased sales.
In addition Mr Byers announced that he intended to make it easier for dealers to buy cars cheaply from abroad by requiring suppliers not to discriminate against those who sell cars obtained from authorised dealers in other EU Member States.
The draft Order will also:
Mr Byers said:
"It is important that consumers receive a fair deal. The Competition Commission's report made it clear that this is not happening and that we in Britain are paying over the odds for new cars. The reason for this is that the market is not operating as competitively as it should. The measures that I plan to introduce should bring about greater competition - and lower prices - by stopping suppliers discriminating against dealers.
"The draft Order will now include new provisions relating to dealers who import cars from authorised dealers in other Member States where prices may be cheaper so that these savings can be passed on to the consumer. Currently, dealers are deterred from selling imported cars when they do not count towards the sales targets and related bonuses set by the supplier.
"I have decided that the Order should make allowances for the important role of Motability in providing the disabled with their own transportation.
"I note that prices for new cars have come down recently. I welcome this response by manufacturers and dealers. The Order is an important part of this process."
The remedies are in response to the Competition Commission's monopoly report into the supply of new cars which found that new car prices in the UK were around ten per cent higher than in similar countries in Europe.
The report also found that private car buyers were paying about ten per cent too much - or £1,100 - for the average car, after taking account of discounts, trade-ins and finance deals.
Mr Byers added:
"We received a large number of comments in response to the public consultation on the provisions to be included in the Order. These have been useful in helping us to prepare the Order. It is important to get the drafting of the Order right so that it will do just what we intend and will be effective. I am therefore, as is usual practice, giving interested parties a chance to comment on a draft of the Order."
The Competition Commission report, New Cars: A report on the supply of new motor cars within the UK, Cm4660 was published on 10 April 2000.
The Secretary of State proposes to make an Order under the Fair Trading Act 1973 to implement these remedies. However, before making the Order he is publishing a notice to that effect, as required by statute, to allow interested parties the opportunity to comment. The notice will be published in the Times on 15 June and requires written representations by 14 July 2000. The Secretary of State expects to sign the final version of the Order in July.
Comments on the draft order should be sent to John Lambert at the Department of Trade and Industry, Competition Policy Directorate 3a, Room 616, 1 Victoria Street, London SW1H 0ET by 14 July 2000.
The Competition Commission also made a number of recommendations for more fundamental change which relate to practices permitted by the European Union's Car Block Exemption rules. These issues are being discussed with the European Commission. It is expected to take at least a year to resolve.
The Lord Chancellor's Department on the 16 June published a consultation Paper seeking views on proposals to incorporate small claims appeals within the new appeal rules set out in Part 52 of the Civil Procedure Rules.
Part 52 came into force on 2nd May 2000 and introduced a unified procedure for civil appeals in the county courts, High Court and Court of Appeal.
Together with the Access to Justice Act 1999, Part 52 creates an appeal system based on the principles identified in Sir Jeffery Bowman's Review of the Court of Appeal (Civil Division) namely, a system that deals with appeals in ways that are proportionate to the grounds of complaint and subject matter of the dispute.
The new appeal rules strip away the former confusing patchwork of appeal provisions and provide a common more accessible procedure.
The new rules do not at present, however, extend to appeals in small claims cases. Maintaining a separate appeal procedure for cases allocated to the small claims track only increases confusion for all parties. Applying the new rules to small claims cases would provide a uniform system.
The effect of this would be to extend the grounds of appeal in cases allocated to the small claims track, whilst requiring them to obtain permission to appeal. In addition, the parties would have a right to an oral hearing of the substantive appeal and that hearing would generally be a review of the first decision, not a complete re-hearing. It is proposed that the existing summary procedure for assessing small claims appeals' costs should continue.
Responses are sought by 14 July 2000. The consultation paper may be viewed on the Department's website (http://www.open.gov.uk/lcd - What's New?)
Provisions for Small Claims Appeals are currently set out in Part 27 rules 12 and 13 of the Civil Procedure Rules (which were introduced in April 1999).
The Access to Justice Act gained Royal Assent on 27th July 1999. The appeal provisions came into force on 27th September 1999 and the new Part 52 rules that gave effect to some of those statutory provisions are set out in SI 221 of 2000 - The Civil Procedure (Amendment) Rules 2000. Amended routes of appeal, which also came into force with the new rules on 2nd May, are set out in SI 1071 of 2000 The Access to Justice Act 1999 (Destination of Appeals) Order 2000.
Following investigations under section 447 of the Companies Act 1985 the High Court made winding-up orders against Hubert Guy Properties Limited ("Properties") and Hubert Guy Holdings Limited ("Holdings") on 15 June 2000, after an adjourned hearing of petitions which were presented by the Secretary of State in the public interest on 22 September 1999.
The two companies wound-up were connected to six other companies ("the Trading Companies") which were wound-up by the Court in the public interest in November 1999 and February 2000 namely:
The Official Receiver has been appointed liquidator of all the companies.
Hubert Guy Properties Limited was part of a group of which Midland Coating Company, Seal Point Limited and the other companies wound-up, were the trading companies engaged in the direct selling of masonry coatings to householders. The trading companies operated a large telephone sales department from the companies' administrative headquarters in Leeds, cold-calling customers to arrange home visits by field sales staff, who carried out surveys on their property in order to sell the coating product. The survey reports were used as a false basis for persuading the customers to employ the services of the business which charged a considerable mark-up over the direct costs of doing the work to sustain its costly marketing operation.
It was intended that Properties would hold the leases of the group's trading premises and that it would invest in other commercial and residential properties. In practise Properties held one commercial lease and purchased a substantial freehold residential property. Investigations showed that Properties was used as a means of siphoning off funds from the trading companies in the guise of expenses such as rates, management charges and vehicle expenses.
Holdings owned the share capital of Properties.
The Registered Office of both Hubert Guy Properties Limited and Hubert Guy Holdings Limited is Axholme House, North Street, Crowle, North Lincolnshire.
The petitions were presented under Section 124A of the Insolvency Act 1986.
All public enquiries concerning the affairs and financial position of the companies should be made to the Official Receiver at the following address:
The Official Receiver
Public Interest Unit
PO Box 203
21 Bloomsbury Street
London WC1B 3QW
SCOTTISH FAST TRACK INSOLVENCY
Beware the Pitfalls!
Contributed by Stephen Cowan, Yuill & Kyle, Debt Recovery Lawyers, Scotland. www.debtscotland.com
E-mail Stephen Cowan scowan@yuill-kyle.co.uk
Using insolvency in Scotland as a fast track collection tool should be exercised with caution - particularly where the debt is disputed . In the case of T J Ross (Joiners) -v- High Range Developments Limited an insolvency process was initiated to recover a disputed debt in preference to a simple court action. The defender's disputed the liquidation petition which was dismissed. The result was the costs of the whole process were awarded against Ross.
The facts of the case were straightforward. Ross carried out building work for High Range. They refused to release a retention of £1,263.57 because they considered remedial work was still required. Ross's response was to write a recorded delivery letter demanding payment within 7 days in response to which High Range replied that the person dealing with the matter was abroad and not expected to return until after the seven days had expired.
Unrelented Ross presented a petition to wind up High Range in terms of Section 123 (1)(e) of the Insolvency Act 1986 on the grounds High Range were deemed "unable to pay their debts as and when they fell due". This petition was granted and a provisional liquidator appointed.
Once High Range discovered a Provisional Liquidator had been appointed they had the Provisional Liquidator's appointment recalled, the petition dismissed and recovered the costs of the entire application.
Ross's contention that High Range were unable to pay their debts was described by the Sheriff as "a manifest absurdity in light of accounts produced…" "Why the petitioners chose to try to recover their account in this why is not clear.." "It is, I think, a reasonable surmise that the petitioners decided to take a liquidation petition rather than court action in the hope of bludgeoning the respondents into a speedy settlement of the claim." The Sheriff also made reference to a Court of Session Judgment where it was decided that "Where a creditor has not constituted a debt and existence of the debt is in dispute the creditor is not in a position to say to the Court that the company is unable to pay its debts and therefore should be wound up."
What lessons should be learned from this? If you want to use the insolvency fast track procedures as an alternative to court action you must be certain the debt is not in dispute. If the debt is in dispute then the cost of the whole process could be awarded against you and this will be a costly exercise.
*** Forthcoming Creditors Meetings ***
Contributed byhttp://www.insolvency.co.uk
For more detailed information and ALL the British Isles insolvency's (liquidation's, receiverships, administrations, dividends, creditors) please visit http://www.insolvency.co.uk
From 19/06/2000 to 27/06/2000 Number of Creditor meetings : 183 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 19/06/2000 D B Contract Services Ltd 11.00 am Glasgow Eurocapital Asset Management Ltd 11.00 am Glasgow 20/06/2000 A Richardson & Son (Roofers) Ltd 12.00 pm Glasgow M K Construction Ltd 11.00 am Glasgow Saltire Number Fifty Six Ltd 03.00 pm Dundee 23/06/2000 Ardyne Scaffolding Ltd 10.30 am Edinburgh 23 Administrator Calling a meeting of Creditors 21/06/2000 Digginwell Plant & Construction Ltd 11.00 am London 22/06/2000 Sunbow Ltd 11.00 am London 23/06/2000 Vega Technology Ltd 10.30 am Fareham 48 Receiver calling unsecured Creditors Meeting 19/06/2000 Hampshire Pipelines Valves & Comp Ltd 10.00 am London Orpris Ltd 10.00 am London Salmons Northfleet Ltd 10.00 am London Salmons Office Supplies Ltd 10.00 am London Transimpex International Ltd 10.00 am London 20/06/2000 DHD Electrical Ltd 11.30 am Manchester DHD Engineering Group Ltd 03.45 pm Manchester DHD Engineering Ltd 10.00 am Manchester 21/06/2000 Bon Secours Health System Ltd 12.00 pm Leeds H Rose (Tottenham) Ltd 10.00 am London Pantmaenog Ltd 10.00 am Manchester Praxis Tailoring Ltd 11.30 am York 26/06/2000 Recon (International) Ltd 11.00 am Leeds 27/06/2000 Hair & Beauty Magazine Ltd 10.00 am London Style Publishing Ltd 10.00 am London 67 Scotland - Receiver calling Meeting of unsecured Creditors 20/06/2000 Islay Cheese Co Ltd 10.00 am Glasgow 98 Creditors Voluntary Liquidations 19/06/2000 Absolute Sheet Metal Ltd 11.30 am Lutterworth Anchor Decorating Supplies Ltd 02.00 pm Nottingham Apple Employment Ltd 02.15 pm London Baker Samuels Ltd 02.00 pm London Beaumont Schubert Ltd 03.15 pm London Beaumont Security Ltd 03.00 pm Bristol Branded Clothing Co Ltd - The 11.30 am London D J Stanyon Ltd 11.30 am Leicester Diamond Project Services Ltd 11.00 am Nottingham J S Travel Ltd 11.00 am Birmingham J W Communications Ltd 11.30 am Walsall MB Stourbridge Ltd 10.30 am Woodford Green Mike Lloyd Artistes Ltd 02.30 pm Hanley Mike Lloyd Music Ltd 11.30 am Hanley Mike Lloyd Theatre Ltd 10.00 am Hanley Oakdene Residential Nursing Homes Ltd 03.00 pm Stoke-on-Trent Origin Developments Ltd 12.00 pm Taunton P J Barnes Ltd 11.00 am Manchester PMC Trading Ltd 11.00 am Bristol Quick Fix Installations Ltd 03.00 pm Birmingham Rainsport Ltd 03.30 pm Brighouse Square Scissors Ltd 03.00 pm Milton Keynes Strategic Quality Management Ltd 10.30 am London Trade Veneered Panels Ltd 10.30 am Leeds Weaver Associates Ltd 10.30 am London 20/06/2000 A C & D Demolitions Ltd 10.30 am Aldridge Abohammad Restaurant Ltd 11.00 am London Alet 5188 Ltd 12.00 pm Sandbach Alliance M & E Ltd 11.00 am Sandbach Aussie Leisure Ltd 10.30 am Droitwich Camshape Ltd 11.30 am At Annes Carlton Loco Ltd 10.30 am Salisbury Claro Vale Ltd 11.00 am York Designer Maker Furniture Ltd 10.15 am Bradford Hasler Farthing Ltd 12.00 pm Newcastle-u-Tyn Innovative Management Services Ltd 02.00 pm Halesowen Katherine Seymour Ltd 12.00 pm London Knightstead Ltd 02.30 pm London Large Corporation Ltd - The 12.00 pm London Marble Direct Ltd 03.00 pm Ilfoird Margarets Gowns (Birmingham) Ltd 11.30 am Walsall McCahill Boyle Ltd 11.00 am Liverpool Personnel Publishing Ltd 11.00 am Brixham Philco Construction Ltd 10.00 am St Albans Pro-Tech (Derby) Ltd 11.30 am Wellingborough R & D Couriers Ltd 11.00 am Milton Keynes Row Farm Recovery Ltd 02.30 pm Derby SMS Business Solutions Ltd 11.00 am Birmingham Sharprose Construction Ltd 10.15 am Leeds T T Independent Financial Advisors Ltd 02.00 pm Alfriston Technical Air Services Ltd 12.00 pm Bury Techset Systems Ltd 11.00 am Manchester Tower Education Ltd 10.30 am Reading Transmase Haulage Contractors Ltd 11.00 am Lincoln Ultravaux Ltd 10.30 am Derby Vsualmotion Ltd 12.00 pm Manchester 21/06/2000 3R Mobile Solutions Ltd 11.15 am Cambridge A P P Print Services Ltd 12.00 pm London Ace Recruitment Ltd 11.00 am Manchester Advantage Windows Ltd 10.30 am Cambridge Aqua Processing & Design Ltd 11.30 am Cambridge Cityspan Ltd 12.00 pm London Distribution Dynamics Ltd 12.00 pm Woodford Green European Technology Group Ltd 11.00 am Edgware Flight Co (UK) Ltd - The 11.00 am London Frontier Systems Innovations Ltd 02.30 pm Southampton G K Waste Ltd 10.30 am Birmingham Global Managed Solutions Ltd 11.00 am London Hogans Buildin Contractors Ltd 11.00 am London Inreco Ltd 12.00 pm Glasgow J P L Ltd 11.15 am London Licensed Premises Sign Co Ltd 11.30 am London PF2 Co Uk Ltd 11.00 am Eccles Pope (UK) Ltd 11.00 am Oadby Quoteback Ltd 02.30 pm Nottingham R S B (Plant Hire & Sales) Ltd 11.00 am Needham Market Race Services (1984) Ltd 10.30 am Sidcup Stakefold Ltd 10.00 am Blackpool Success Furniture Ltd 11.00 am London Temps Select (Birmingham) Ltd 11.00 am Birmingham Transport & Vehicle Services Ltd 11.00 am Birmingham Vistagold Design Ltd 03.00 pm Glazebrook Watsons of Dorking Ltd 03.00 pm London 22/06/2000 Cashmere Stores of Scotland Ltd - The 12.00 pm Oban Deliveries Direct (Moston) Ltd 12.00 pm Manchester Forage Box Ltd 12.00 pm London George Smith & Sons (Northwest) Ltd 11.30 am Altrincham Home Store Ltd - The 11.30 am Chatham House of Iron (Retail) Ltd 11.00 am Calcot La Veride Ltd 02.30 pm London M D F Services Ltd 03.00 pm Chatham Omniway Ltd 10.30 am Derby P J Brutnall (Hinckley) Ltd 03.30 pm Lutterworth Parkland Leisure Ltd 11.30 am Bradford Pioneer Coldstore Construction Ltd 10.30 am Droitwich Portland Sheet Metal Ltd 10.30 am Alfreton Quality Assurance Testing Services Ltd 11.45 am Maidstone Rundell Ltd 03.30 pm London Star Personnel Ltd 11.00 am Chorley Stratford Precision Plastics Ltd 11.30 am Birmingham Techtapes Ltd 12.00 pm London Westvogue Ltd 12.00 pm Manchester Window Dressings (Brighton) Ltd 02.00 pm London 23/06/2000 Acremere Ltd 03.00 pm London Alben (UK) Ltd 03.00 pm London Aliance Services Ltd 12.00 pm Glasgow Buckley & Sullivan Ltd 02.30 pm Derby Cardiff Devils Ltd 10.30 am Cardiff Celtic Leisure (Cymru) Plc 11.30 am Cardiff Channons (Dorchester) Ltd 10.00 am Dorchester Crystal Financial Services Ltd 11.00 am Preston Devils Management Ltd 10.30 am Cardiff Forefront Recruitment (Construct) Ltd 10.30 am Sheffield Forefront Recruitment (Industries) Ltd 11.00 am Sheffield Games World Ltd 11.00 am Northampton Home Elements Ltd 11.00 am London I H Corrugates Cases Ltd 11.00 am Leeds Information Tech Estate Management Ltd 02.30 pm York Ivor Fields (Photography) Ltd 11.15 am Pinner J J T V Audio Repairs Ltd 12.00 pm Portsmouth James & Keats (Blandford) Ltd 11.15 am Dorchester James & Keats Ltd 12.15 am Dorchester Kusum Jalota Ltd 11.00 am Hale La Rocka Ltd 12.00 pm London Mere Construction Co Ltd 11.30 am Manchester Ron Clifford Plasterers Ltd 10.30 am Liverpool S C S Systems Ltd 10.15 am Bately S K J Ltd 12.00 pm Hale Town & Country (Taverns) Ltd 10.30 am London UK Fabrics Dyeing & Finishing Ltd 03.00 pm Leicester 26/06/2000 Acemark Computers Ltd 11.45 am Woodford Green BMS (London) Ltd 12.30 pm London Executive & Management Resources Ltd 02.30 pm London FM Digital Color Ltd 11.00 am Birmingham GWS Services Ltd 11.00 am London Greater Photographic Services Ltd 10.00 am Wakefield Greenwood & Sons (Waste Disposal) Ltd 12.00 pm London Malmesmead Ltd 10.00 am Epsom Manchester Envelope Co Ltd 12.00 pm Hale Maple Leaf Sports Ltd 11.00 am Basingstoke North Kent Moulders Ltd 11.00 am London Package Professionals International Lt 11.00 am London Steelbeam Ltd 11.30 am Altrincham Thyateira (UK) Ltd 11.30 am London 27/06/2000 1st Line Mobile Communications Plx 11.00 am Cardiff Advanced Plasma Vision Ltd 10.30 am London G B Design Ltd 03.45 pm London G2E Ltd 11.00 am Reading Heritage Electrical Services Ltd 11.15 am Liverpool Kemtech Construction Chemicals Ltd 11.30 am Manchester Leisure Photography Services Ltd 10.30 am Halifax Oldroyd & Hudson Ltd 10.30 am Yarm Perkins Mackintosh Ltd 10.30 am Sheffield Pinkney & Allman Ltd 10.30 am Leicester Turnserve Ltd 11.00 am Gosforth Window Depot (Staffs) Ltd - The 11.00 am Newcastle-u-Lym Worcestershire Kitchen Co Ltd 11.30 am Lichfield Worcestershire Window Co Ltd 10.30 am Lichfield
TW LW TW LW
USA 1.51 1.50 Canada 2.23 2.22
Austria 21.85 21.77 Portugal 318.46 317.18
France 10.42 10.37 Belgium 64.08 63.82
Finland 9.44 9.40 Italy 3075.81 3063.37
Germany 3.10 3.09 Sweden 13.19 13.22
Holland 3.50 3.48 Switzerland 2.48 2.47
Spain 264.31 263.23 Ireland 1.25 1.24
Australia 2.57 2.56 Denmark 11.85 11.81
Hong Kong 11.82 11.72 Euro 1.58 1.58
Africa Com 10.66 10.51 Saudi Arabia 5.69 5.64
India 67.92 67.34 Malaysia 5.76 5.71
Singapore 2.61 2.59 Norway 13.18 13.15
Japan 161.99 160.80
TW This week LW Last week.
Eidos, the computer games group, announced pre-tax profits of 49.3 million pounds, after exceptional credit, on turnover of 203.3 million, for the year ending 31st March 2000. Earnings per share stand at 25.9p, on increased capital.
Jarvis announced pre-tax profits of 31.6 million pounds, after exceptional credit, on turnover of 669.1 million, for the year ending 31st March 2000. Earnings per share stand at 16.6p, on increased capital.
RPC announced pre-tax profits of 19.8 million pounds, on turnover of 295.7 million, for the year ending 31st March 2000. Earnings per share stand at 17.7p.
Victrex announced pre-tax profits of 7.83 million pounds, on turnover of 30.6 million, for the six months ending 31st March 2000. Earnings per share stand at 7.5p.
BSKYB, the British satellite-TV company, paid 1.2 billion pounds ($1.8 billion) for the right to show 66 football matches from The English Premier League over the next three years. NTL, a cable company, paid 328m pounds to show 40 pay-per-view games. The BBC lost the highlights to its commercial rival, ITV.
An initial public offering of 20% of EGG, an Internet bank controlled by Prudential, the UK's life insurer, was relatively successful. The float valued Egg at 1.3 billion pounds ($2.0 billion), and the shares closed up 11% in the first day's trading.
A profits warning from Computacentre, a British computer systems and services company, sent the company's shares down 35%. The company said that spending thought to have been delayed by Y2K fears had not materialised, and that customers were delaying IT investment to assess their e-commerce needs.
American regulators said they would look at America Online's dominance of Internet-based instant messaging, a service even more immediate than e-mail, as part of an antitrust investigation into AOL's $124 billion acquisition of Time Warner. Time Warner's potential broadband capabilities could increase AOL's grip on the market.
Belgium's Interbrew is to buy the brewing interests of Bass, a UK leisure firm, for 2.3 billion pounds ($3.5 billion), only weeks after acquiring the beer interests of UK's Whitbread. Interbrew will become the world's second-largest brewer, beating third-placed Heineken by a head.
Oryx, a diamond company planning to obtain a London stockmarket listing by a reverse takeover of Petra, a Bermuda-based diamond company, was forced to pull out of the deal. Petra's adviser, accountants Grant Thornton, had said it would not act for the firm if the deal was approved. Oryx has links with Zimbabwe's army and possibly Congo's president.
MERGER CLEARANCE
The Secretary of State for Trade and Industry has decided, on the information at present before him, and in accordance with the recommendation of the Director General of Fair Trading, not to refer the following merger to the Monopolies and Mergers Commission under the provisions of the Fair Trading Act 1973:
Acquisition by Tyco International Limited of Critchley Group plc
Proposed acquisition by Harsco Corporation of SGB Group plc
Completed acquisition by Abbey National Treasury Services plc of Stagecoach Porterbrook Ltd
Acquisition by Jessops Group Ltd of Cequip Ltd and 31 Tecno stores
DIRECTOR GENERAL OF FAIR TRADING TO CONSIDER PUBLIC SECURITY ASPECTS OF THOMSON CSF'S PROPOSED ACQUISITION OF RACAL ELECTRONICS PLC
The Director General of Fair Trading is to consider the public security aspects of Thomson CSF's proposed acquisition of Racal Electronics PLC under the Fair Trading Act 1973.
The Secretary of State for Trade and Industry will decide what measures, if any, to take to protect the UK's public security under the Fair Trading Act in the light of the Director General's advice. Any such measures would be taken in accordance with Article 21(3) of the EC Merger Regulation.
The competition aspects of this case are currently under investigation by the European competition authorities.
Thomson CSF's proposed acquisition of Racal Electronics PLC was notified to the European Commission on 12 May 1999 under the terms of the EC Merger Regulation (Council Regulation 4064/89 as amended by Council Regulation 1310/97).
Under Article 21(3) of the EC Merger Regulation Member States may take appropriate measures to protect legitimate interests in cases which fall to the ECMR and public security, plurality of the media and prudential rules shall be regarded as legitimate interests.
The DGFT's consideration of this case will be in accordance with the merger control provisions of the Fair Trading Act 1973. The DGFT will consider the issues and advise the Secretary of State for Trade and Industry whether there is a case for referring the public security aspects of the merger to the Competition Commission. The UK wrote to the European Commission on 12 June informing them of this.
STEPHEN BYERS REFERS PROPOSED ACQUISITION OF COMMUNITY HOSPITALS GROUP BY BUPA TO THE COMPETITION COMMISSION
Stephen Byers, Secretary of State for Trade and Industry, has decided to refer the proposed acquisition of Community Hospitals Group plc (CHG) by the British United Provident Association (BUPA) to the Competition Commission under the provisions of the Fair Trading Act 1973.
Mr Byers' decision is in accordance with the advice of the Director General of Fair Trading (DGFT),
Announcing his decision, Mr Byers said :
"The DGFT advised me that this merger raises competition concerns which would warrant reference to the Competition Commission under the provisions of the Fair Trading Act 1973,
"BUPA is one of the leading players in the provision of private medical insurance and has a significant presence in the market for private medical services. I have carefully considered the DGFT's advice and agree with him that the proposed acquisition of CHG by BUPA raises competition concerns in respect of both the private medical insurance and private medical services markets in the UK. Therefore I am referring the case to the Competition Commission so that it can be fully investigated."
The decision to make a reference does not in any way prejudge the question of whether or not the proposed acquisition would be against the public interest. It is for the Competition Commission to report on this after investigation. The Commission are to make their report by 11 October 2000.
The Fair Trading Act 1973 empowers the Secretary of State to refer to the Competition Commission for investigation and report actual or proposed mergers which create or intensify a market share of 25% of the supply in the UK, or a substantial part of the UK, of particular goods or services or involve the take-over of assets exceeding £70m.
A multi-million pound Government investment in the future of the UK's optical technology industry was announced by Science Minister Lord Sainsbury on the 14 June.
The £11 million programme, aimed at encouraging greater links between universities and companies to develop new optical applications, will be matched by the private sector. Overall more than £20 million could be spent over the next five years, helping to keep the UK at the forefront of this high-tech sector.
Optical systems allow massive increases in computing and communications power, transmitting and processing information at the speed of light. They have a wide range of applications:
The new LINK programme 'Optical Systems for the Digital Age,' will support collaboration between industry, (especially small and medium sized enterprises) and universities on projects involving the application of optical techniques and devices, and to promote the novel use of such technologies in a wide variety of sectors.
Making the announcement, Lord Sainsbury said:
"The LINK programme is an excellent example of how we can encourage universities and industry to work more closely together in developing technologies for the future. The UK has a world class reputation in optical technologies - our achievements include the invention of the optical fibre amplifier and light-emitting polymers. UK businesses have also succeeded gaining a substantial share in the £30 billion world market for optical communications. In the last year alone, over 6,000 new jobs in research and development and manufacturing have been announced in the optical systems and components industry.
"Knowledge-based high technologies will be an important part of this country's industrial future. The new LINK programme will do much to ensure that this research is exploited by UK-based companies for the benefit of the UK economy. Our support for such projects will help create new world-class companies and the high-wage, high-value jobs of tomorrow."
The DTI will provide up to £6 million over five years, with a further £5 million from the Engineering and Physical Sciences Research Council (EPSRC). Industry will contribute matching funds on a project by project basis.
Optical systems have a wide range of applications, particularly in computing and communications, where they will allow high-bandwidth multimedia services to be delivered through the internet; and provide greater network flexibility and functionality for mobile communications services.
Potential participants should contact Dr Peter Batchelor (DTI) on 020 7215 1342 (email peter.batchelor@dti.gsi.gov.uk) or Glenys France (EPSRC) on 01793 444319 (email glenys.france@epsrc.ac.uk).
19 June 2000 The Wessex Branch meeting of the ICM Presentation by Mike Heath Director General of the Chamber of Commerce The Royal Southampton Yacht Club 1 Channel Way, Southampton 7.00pm for 7.30 pm Buffet 20 June 2000 The ICM AGM at 3.30pm The Water Mill, Station Road, South Luffenham, Oakham, Leics, LE15 8NB 5 July 2000 E-Commerce for the Credit Manager New ICM Conference Kenilworth, Warwickshire Contact the ICM Training Department on 01780-722907 e-mail training@icm.org.uk Tuesday 3 October 2000 ICM Credit Scotland 2000 (Conference and Exhibition) Hampden Park Football Stadium, Glasgow Anyone interested in attending (or exhibiting) should contact David Ancliffe on (0131 200 8686). Friday 20 October 2000 Millennium Annual Dinner of the ICM Drapers Hall, City of London.
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