BUSINESS WITH PERSONALITY

SLIM TOPS
TOTTENHAM’S EUROPEAN RICH LIST
ADVENTURE CONTINUES 1,210 BILLIONAIRES
AS ASIA CLOSES IN
SPURS EDGE PAST MILAN P26-27 ON THE US P3
Issue 1,339 Thursday 10 March 2011 www.cityam.com FREE

n TCHENGUIZ BROTHERS RELEASED WITHOUT CHARGE IN INVESTIGATION OF KAUPTHING COLLAPSE

MAYFAIR TYCOONS: WE
WILL CLEAR OUR NAME
ENFORCEMENT string of companies. He pledged the
▲

BY STEVE DINNEEN firms as collateral on his brother’s spi-

THE Tchenguiz brothers were held for
questioning for over 12 hours by the
Serious Fraud Office yesterday after
being arrested in connection with the
collapse of Icelandic bank Kaupthing.
Vincent and Robert Tchenguiz were
among seven men arrested in a series
of dawn raids across London.
The brothers were both released
without charge last night and were
free to travel, their spokesman said.
Robert Tchenguiz had debts with
Kaupthing totalling more than £2bn.
His credit line was extended after the
onset of the recession, despite his port-
folio of investments beginning to turn
sour. Minutes from the bank show
that some of the lending was used to
finance debt owed to other lenders.
He famously lost almost £1bn in
just a few days in 2008 when his stakes
in firms including J Sainsbury and
Mitchells & Butlers – which had
already lost hundreds of millions in
value – were seized to help pay the
debts. Other assets seized include pro-
ceeds from the 2009 sale of
Somerfield, the privately owned pub-
chain behind Yates’s and Slug and
Lettuce and restaurant group La Tasca.
Vincent has launched a £600m
claim against Kaupthing’s liquidators,
after effectively forfeiting shares in a
ralling debt with the bank.
Kaupthing has been criticised for its
close relationship with Robert, who
owned 1.5 per cent of the bank out-
right and was also a director and
shareholder in Exista, which was
Kaupthing’s largest investor.
It is understood Armann
Thorvaldsson, former head of
Kaupthing’s UK business and Sigurdur
Einarsson, who was Kaupthing’s
London-based executive chairman and
chief executive, are also among those
who have been arrested.
Tchenguiz’s offices in central
London were searched as part of the
investigation, which involved 135 City
of London police and SFO officers.
Two men were also arrested in
Iceland as part of the probe, which has
been running since 2009.
A statement by the brothers said:
“We were arrested earlier this morn-
l A police offi-
ing and are being questioned with cer leaves a note
regard to matters relating to our rela- on his car outside
tionship with Kaupthing Bank. Both of the Tchenguiz’s
us are cooperating fully with the inves- offices
tigation and are confident that, once
concluded, we will be cleared of any
allegation of wrongdoing.”
Robert Tchenguiz was a Tory party Pictures: Alan
l Vincent (left) and Robert Tchenguiz say they will l Lisa Tchenguiz leaves her brothers’ Curzon Street
donor, handing over £53,620 through Davidson, Micha
clear their names of wrongdoing Theiner offices yesterday. She is not under investigation.
his R20 firm.
TCHENGUIZ BROTHERS: P8-P9, DIARY: P10

Benefit fraud and overpayment costs £3.1bn

POLITICS
▲

BY JULIET SAMUEL
THE government wasted £3.1bn last
year due to fraud and errors that
caused it to overpay benefits, accord-
ing to a report by the House of
Commons’ Public Accounts
Committee (PAC).
Most of the waste was caused by
failures by the Department for Work
and Pensions (DPW), with £1.1bn stem-
ming from mistakes by officials and
another £1.1bn from failing to catch
claimant errors. The remaining £1bn
in overpayments were due to fraud.
The committee called for urgent
action to deal with the mistakes, the
total cost of which is equivalent to 0.7
per cent of benefits spending and
more than half of the budget cuts
George Osborne made last year.
However, the wastage was to some
degree offset by underpayments of
£1.3bn, which the committee said
were causing “significant financial
hardship” for claimants.
Its report also shows that a crack-
down on error launched by the depart-
ment in 2007 was ineffective, with
wastage having remained roughly con-
stant since then.
The department, which never even
drew up a plan for reducing errors,
has now had an additional £425m ear-
marked to help it stamp out mistakes.
It said a major reason for errors is
the complexity of the benefits system,
which is due to be replaced by a sim-
pler universal credit system from 2013.

FTSE 100 t5,937.30 -37.46 DOW t12,213.09 -1.29 NASDAQ t2,751.72 -14.05 £/$ 1.62 unc £/¤ 1.16 unc ¤/$ 1.39 unc Certified Distribution
03/01/11 till 30/01/11 is 97,465
 2 News
How to squeeze more out of UK plc
EDITOR’S LETTER
ALLISTER HEATH
ONE of the most influential books in
America today – Tyler Cowen’s The
Great Stagnation – argues that tech-
nological innovation peaked in 1873
(yes, you read that right). Most of the
progress of the past 100 years has
come from the application of innova-
tions made prior to 1914, he says;
what we now think of as dramatic,
revolutionary discoveries (the inter-
net, mobile phones, some new medi-
cines) are in fact less life-transforming
than previous, truly colossal break-
throughs such as the invention of the
internal combustion engine, electrici-
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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 Micha Theiner
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Commercial Director Harry Owen
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WHAT THE OTHER PAPERS SAY THIS MORNING
BARCLAYS WINS SUIT OVER SALE RISK
LEVEL
Barclays has won a legal case brought
against it by a small San Marino bank
which alleged the UK bank sold it
complex debt products which were
“much riskier” than the triple A cred-
it rating they had been given. Cassa di
Risparmio della Repubblica di San
Marino (CRSM) had claimed €92m
(£79m) in losses and lost income,
alleging fraudulent misrepresenta-
tion over the sale of ultra complex
collateralised debt obligations (CDOs)
during a long-running trial in the
UK’s High Court. Barclays had strong-
ly denied the claims.
OMNICOM IN DEALS TO TARGET
ONLINE ADS
Omnicom, one of the world’s largest
marketing services groups, has struck
what it claims are industry-first part-
nerships with AOL, Yahoo and
ty, the telephone or penicillin. This,
Cowen argues, helps to explain why
the West is grinding to a halt in terms
of productivity growth and incomes.
Whether Cowen is right or not is
fundamental to the future of human-
ity. But here is the good news: it does-
n’t matter much in the short term.
Britain’s problems are more prosaic.
There are lots of lowish-hanging fruit
to be picked in a system as sick as
ours; a few sensible yet radical poli-
cies could trigger a productivity
explosion, regardless of global techno-
logical change or lack thereof.
The first reform is loosening plan-
ning laws to boost the supply of hous-
ing, keeping a lid on prices and
freeing vast amounts of resources to
be spent on other things. The second
is cutting marginal tax rates, especial-
ly on income: as the Adam Smith
Institute documents today, we are
now at a stage where tax is reducing
economic activity. Third, there needs
to be fewer regulations: the avalanche
of red tape, including a flurry of cost-
Portugal sells
€1bn in bonds
EUROZONE CRISIS
▲
BY ALISON LOCK
PORTUGAL edged closer to an EU
bailout as its two-year cost of borrow-
ing on a €1bn (£861m) bond sale
surged yesterday.
The Portuguese government sold
the 5.45 per cent bond, which
matures in 2013, at a yield of 5.993
per cent. The cost was almost 200
basis points higher than the 4.086 per
cent yield from its last sale of two-
year bonds in September.
The heavily-indebted nation, which
has €4.3bn of bonds due for repay-
ment in April, denied that it would
need to seek EU support.
“These are rates that are not sus-
tainable in the longer term, but they
are still bearable at the moment,”
Portuguese Treasury secretary Carlos
Pina said. Portugal “does not need
Microsoft, to gain direct access to the
internet companies’ consumer data.
GERMANY’S NUCLEAR TAX EXPECTED
TO ERODE EON’S 2011-12 PROFITS
Eon, Germany’s largest utility compa-
ny, expects profits to dip this year and
next as it grapples with a new
German tax on nuclear power and
tries to get out of supply contracts
that force it to buy gas above current
market rates. The Düsseldorf-based
company said earnings before inter-
est, tax, depreciation and amortisa-
tion, adjusted for one-off items,
would hit €11.2bn-€11.9bn (£9.6bn-
£10.2bn) this year and about €13bn
the following year after coming in at
€13.3bn in 2010.
DIVIDENDS TAKE OFF AGAIN AT
LUFTHANSA
Lufthansa is to resume paying a divi-
dend after swinging back into profit
last year, in spite of costs incurred
from strike action, a volcano in ice-
land and higher fuel prices.
ly regulations on business this year, is
acting as a major break on private sec-
tor growth and investment.
Last but not least, the public sector
needs to be reduced in size and made
more efficient. The gains to be had
from increasing the efficiency of
health, education and other services
are immense and would transform
the UK. Productivity fell by a cumula-
tive 3.4 per cent in the public sector
during the Blair years, against a 28 per
cent gain in the private sector. Even
then, some of the figures are exagger-
ated: better GCSE results are classified
as an increase in government output
(and thus as a rise in GDP) even if
caused by grade inflation. The Centre
for Economics and Business Research
calculates that taxation could be
£58bn a year lower had the public sec-
tor achieved private sector levels of
productivity improvements.
One reason for the public sector’s
appalling inefficiency, as a Centre for
Policy Studies paper out today
explains, is that it has failed to cap-
external help”, he said. Bids for the
bond exceeded supply by 1.6 times,
down from 1.9 on September’s issue.
But Evolution Securities analyst
Elisabeth Afseth said most people
considered a bailout “a done deal”.
“It has not been agreed by politi-
cians but as far as the market is con-
cerned it is widely expected that it
will emerge at some point,” she said.
CMC Markets analyst Michael
Hewson said Portugal’s ten-year bor-
rowing cost was 7.7 per cent, which
he described as “not sustainable”.
Carlos Pina, the
Portuguese secretary
of state for Treasury
and Finance, denied
it would need EU aid
SEC IN HOT SEAT OVER MADOFF LINK
Mary Schapiro, chair of the SEC, will
appear before a Congressional com-
mittee today to answer questions on
the “multiple potential conflicts” of
David Becker. America’s main finan-
cial regulator will come under
intense scrutiny from lawmakers
tomorrow for allowing its top lawyer
to work on the case of Bernard
Madoff, even though he inherited
money tied to the convicted fraud-
ster’s Ponzi scheme.
CHANGE AT TOP FOR DAVID LLOYD
LEISURE
David Lloyd Leisure, Britain’s biggest
chain of tennis-based health and fit-
ness clubs, is set to part company
with its managing director and
deputy chief executive, The Times has
learnt. Nick Backhouse is stepping
down and his responsibilities will be
assumed by Scott Lloyd.
ture economies of scale that usually
accompany growth. A school that
goes from 100 to 200 teachers should-
n’t require a doubling in the number
of administrators to cope. As spend-
ing goes up, the front-line component
of the workforce should expand more
rapidly than the back office. Yet the
opposite happened.
What is obvious is that growth can
no longer come from debt. Between
2000 and 2007, nominal GDP rose 44
per cent while property prices
jumped 131 per cent, outstanding
mortgage amounts 121 per cent and
unsecured lending 110 per cent. Debt-
financed “stimulus” has also run its
course: the return on hundreds of bil-
lions of state expenditure has been
astonishingly poor. The only answer is
for Britain to increase its productivity
and get more out of its resources. For
that, we don’t need a scientific revolu-
tion – just a proper pro-growth set of
policies. Over to you, chancellor.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Toronto-Dominion bank CEO Edmund Clark may try to block the deal Picture: REUTERS
Banks to oppose LSE deal
EXCHANGES
▲
BY JULIET SAMUEL
CANADIAN banks are set to wade into
the debate over the merger of the
London Stock Exchange (LSE) and
TMX, its Canadian counterpart, in a
bid to scupper the deal.
Four banks are thought to be
preparing to come out against the
merger in a joint letter, but their oppo-
sition is complicated by the fact that
they all own shares in a TMX rival,
Alpha Group.
LUCIAN GRAINGE TO TAKE ON DUAL
CHIEF EXECUTIVE AND CHAIRMAN
ROLE AT UNIVERSAL MUSIC
Lucian Grainge is to be promoted to
the role of chief executive and chair-
man of Universal Music, the world’s
largest music group. The British
music executive, who has strong rela-
tionship with artists including U2,
Abba, Take That and Amy Winehouse,
is currently Universal’s chief execu-
tive.
EU PARALYSIS DRIVES FRESH BOND
ROUT
Political paralysis in Brussels and
monetary tightening by the European
Central Bank has set off a fresh spasm
of the eurozone bond crisis, pushing
spreads on Portuguese, Irish and
Greek bonds to post-EMU records.
Portugal edged closer to the brink yes-
terday, having to pay almost 6pc to
raise two-year debt.
CITYA.M. 10 MARCH 2011
Landmark trial
against Galleon
founder begins
▲
COURT
A US prosecutor told a jury that greed
drove hedge fund manager Raj
Rajaratnam to establish a corrupt net-
work of people to trade on inside
information and make millions in
illegal profits, as the trial got under
way in the biggest Wall Street insider
trading case in a generation.
Sri Lankan-born Rajaratnam, 53,
sat impassively as prosecutor
Jonathan Streeter said the case was
about “greed and corruption”.
In a trial expected to last two
months, the jury will hear about cor-
porate secrets, wiretaps and cooperat-
ing witnesses who are expected to
testify about illicit stock tips allegedly
fed to the Galleon Group founder
The US government accuses
Rajaratnam of reaping $45m (£28m)
illegally between 2003 and 2009.
A public statement against the deal
would inflame the controversy over
what is already an explosive topic in
Canada. The government of Ontario is
currently conducting public hearings
on the merger to address concerns
that it could undermine domestic reg-
ulators’ control over one of the coun-
try’s major exchanges.
The banks in question are the
National Bank of Canada, Toronto-
Dominion, Bank of Nova Scotia and
the Canadian Imperial Bank of
Commerce. All declined to comment.
RENAULT SPY PROBE TURNS TO
LETTER-WRITER
Renault is making plans to exonerate
the three managers fired for alleged
corporate espionage, people familiar
with the matter said, in what would
be a major stand-down that could
presage a change in the French auto
maker’s senior management.
HSBC PULLS BACK IN BID TO SERVE
WEALTHY
HSBC Holdings will halt its push for
new clients of HSBC Premier, its flag-
ship banking service aimed at
wealthy international clients, as it
tackles company-wide cost overruns
the bank flagged in its 2010 annual
results last week. Putting the brakes
on Premier, an account brand that
provides “preferential” banking serv-
ices to wealthy customers, is one of
the changes to be made by new Chief
Executive Officer Stuart Gulliver.
CITYA.M. 10 MARCH 2011 News 3

Oil price hits $116

Flames and thick
black smoke erupt
from an oil pipe
burning near Ras
Lanuf, in Libya’s

as plants bombed
rebel-held eastern
region. Images
such as this
sparked a global
oil buying spree.
The price of Brent
crude was pushed
to over $115 a bar- western town of Zawiya and oil towns

▲
WORLD
rel. BY KATIE HOPE
Picture: GETTY THE price of Brent crude surged over
$116 a barrel yesterday after Mummar
Gadaffi’s forces bombed Libya’s main
oil terminal.
The attack on the Es Sider terminal
was the first against a critical oil facil-
itity since fighting began, and came
as Gaddaffi tried to crush the upris-
ing against him by bombarding the
in the rebel-held east.
Televised pictures of the flames
prompted a buying spree in the oil
market, with Brent crude surging to a
session high of $116.18 – near to its
highest level in 2 1/2 years. It later fell
to $115.51 a barrel.
Market jitters remain with traders
concerned that oil supplies will be
disrupted for a long period, despite
OPEC promises to pump extra oil.

Asia narrows
US lead in list
of billionaires
worth $18bn.
▲

WEALTH
BY JULIET SAMUEL
ASIA churned out 105 billionaires
last year, narrowing the US’s lead in
the Forbes magazine annual list of
billionaires.
The Asia-Pacific region now has
300 billionaires, versus the US’s 413,
collectively valued at $1.3 trillion
and $1.5 trillion respectively. China
now has 115 billionaires, versus
India’s 55.
The list set a new record for being
the longest ever compiled in its 25-
year history, with 1,210 making the
cut, up from 1,011 last year. The net
worth of those on it rose from $3.6
trillion to $4.5 trillion, larger than
the size of Germany’s economy.
For a second year running,
Mexican telecoms tycoon Carlos
Slim Helu and his family topped the
list, with their net worth surging an
astonishing $20.5bn to $74bn. He
was followed by Bill Gates, worth
$56bn and Warren Buffett, at $50bn.
Others in the top 50 include Alice
Walton of Walmart at $21bn, Google
founders Sergey Brin and Larry Page,
worth $20bn each and Michele
Ferrero of Ferrero Rocher chocolates,
Europe added more billionaires
than did America this year, increas-
ing its contribution to the list by 50
versus the US’s 23. The continent’s
richest person is Bernard Arnault of
French luxury group LVMH, who has
amassed $41bn.
Britain’s richest man, Gerald
Cavendish Grosvenor, the Duke of
Westminster, can boast only $13bn,
or 57th place, mostly from real
estate.
He is followed by other real estate
tycoons David and Simon Reuben,
who are sitting on $8bn and Cristina
and Philip Green of Topshop and
Arcadia Group, who are worth
$7.2bn. Green was commissioned to
act as the government’s efficiency
czar last year, producing a report
that recommended billions in sav-
ings.
The best industries to be in for
prospective newcomers to the rich
list was energy, which produced 31
new billionaires, followed by fashion
and retail, manufacturing and
finance.
The proportion of women on the
list remained roughly constant at 8.4
per cent versus 8.8 per cent last year.

IBM stocks hit Pimco ditches

a lifetime high US treasuries
▲

TECHNOLOGY
SHARES of International Business
Machines (IBM) hit a lifetime high yes-
terday as analysts welcomed the tech
giant’s commitment to double its
profit by 2015.
IBM shares rose as much as 3.3 per
cent to $167.72 (£103.50), their highest
level on record adjusted for stock
splits, as analysts raised their target
price on the company, the day after it
reaffirmed its ambitious 2015 earn-
ings target of doubling profit to at
least £20 per share. The optimism was
limited to IBM. Shares of rivals
Microsoft, Apple and Hewlett-Packard
all fell. US MARKETS: P16
BONDS
THE world’s largest bond fund, the
Pimco Total Return fund, has sold off
all of its US Treasures due to worries
about the government’s ballooning
budget deficit, which is forecast to
reach $1.65 trillion this year. In his
most recent monthly report, Pimco
founder Bill Gross asked: “Who will
buy treasuries when the Fed does-
n’t?” His fund’s dumping of treasur-
ies was executed speedily last
month: they moved from making up
12 per cent of its assets at the end of
January to zeo by 28 February. Gross
expects the yield on treasuries to rise
as the US over-spend continues.
CITYA.M. 10 MARCH 2011
Horta-Osorio
swings axe to
appoint allies
▲
BANKING
BY RICHARD PARTINGTON
OUTGOING Lloyds executive Helen Weir
could be paid more than £1.7m by the
state-owned lender for at least a year
after she walks out of the door.
The former retail director will exit
the bank, as one of the first boardroom
casualties of new chief executive
António Horta-Osório’s strategic shake-
up.
Although Weir will not get a golden
parachute, she will still be paid by the
bank for a year, or longer in gardening
leave should she join a competitor.
Also exiting the executive board is
insurance director Archie Kane, who will
retire from the bank with a year’s pay
packet of around £1.5m and a pension
pot worth £6.8m.
The changes come less than two
weeks into Horta-Osório’s tenure at the
top of the bank and are part of his ongo-
ing strategic review.
It leaves the Lloyds board with just
two executive directors appointed by his
predecessor Eric Daniels.
The former Santander UK chief could
hire or fire a number of other senior
staff for his operation, in a strategic
review that will conclude in June.
Northern Rock posts a £232m
loss on its long road to recovery
▲
BANKING
STATE-OWNED lender Northern Rock
yesterday said it made a loss of £232m
last year.
In its first annual results since the
government split the “good” part of
the bank from its toxic assets last year,
Northern Rock said it was hit by
restructuring costs of £362.5m.
It was weighed down by a £59.9m
exceptional expense relating to its sep-
aration and by charges of £33.2m for
government funding guarantees.
Yet Northern Rock insisted it had
made progress.
The lender said it had narrowed its
underlying losses to £92.4m in the sec-
News 5
Lloyds chief exec Archie Kane (left)
António Horta- will retire with a
Osório (left) has £6.8m pension,
promoted his col- while Helen Weir
league from (right) will exit
Santander UK, the Lloyds board
Antonio Lorenzo with £1.7m.
(r).Pictures: Micha Pictures: REX,
Theiner, Newscast Micha Theiner
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Analyst at Exane BNP Paribas Ian
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ANALYSIS l Lloyds Banking 61.39
70 9 Mar
p
66
62
13 Dec 5 Jan 25 Jan 14 Feb 4 Mar
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 6 Focus on Prudential
The Pru tops
market with
£1.9bn profit
INSURANCE
▲
BY ALISON LOCK
PRUDENTIAL chief executive Tidjane
Thiam answered critics and reassured
investors with full-year results ahead
of expectations yesterday.
The Pru’s IFRS operating profit was
up 24 per cent to £1.94bn, up from
£1.56bn in 2009 and 12 per cent high-
er than consensus forecasts of £1.6bn.
The UK’s biggest insurer also
reached out to investors angered by
Thiam’s failed $35.5bn (£22bn) bid for
Asian insurer AIA by rebasing its divi-
dend and increasing its full-year pay-
out 20 per cent to 23.85p.
Thiam said the results were due to
a “disciplined approach to capital
allocation, proactive risk manage-
ment and focus on profitability.”
Sales by annual premium equiva-
ANALYSIS l Asian new business profit by
region 2010 (£m)
SE Asia &
HK £792m
Korea &
Taiwan £45m
China £27m
India £38m
CITYA.M. 10 MARCH 2011
Thiam placates investors
but pay row may be next
PROFILE ter of planning and development in
▲
BY ALISON LOCK his native Cote d’Ivoire before
leaving the country after a
TIDJANE Thiam returned like 1999 coup. He joined
Lazarus from beyond the reputa- Aviva as group strategy
tional grave yesterday with the kind and development direc-
of convincingly superb results need- tor in 2002 and the Pru
ed to regain investors’ faith. in 2007.
Thiam, promoted from finance These results and
lent increased 23 per cent to £3.5bn director to chief executive of the Pru 20 per cent dividend
from £2.84bn in 2009, when they in 2009, has felt the wrath of share- hike should reassure
grew at just one per cent. holders since his ill-fated $35.5bn investors that
Its Asian businesses, where sales (£22bn) bid for AIA. Thiam is the man
grew 24 per cent to £1.5bn, have been Thiam launched the bid last for this job.
growing at record levels for the past March but infuriated investors later But as one row
six quarters and remitted £233m cash that month by accepting a director- fades into the dis-
to the group in 2010, it said. ship at Societe Generale in addition tance, another
Thiam said the strategy was to to his day job. He was forced to turn may be brewing,
accelerate growth in the region fur- it down. as the remuner-
ther. “We estimate the size of the The AIA bid antagonised the ation commit-
Asian middle class at 1.9bn, so we Financial Services Authority, which tee prepares
consider that we are only scratching queried the Pru’s $21bn rights issue Thiam’s poten-
the surface and have a lot of room to – and investors, who questioned the tial £5.2m pay
grow,” he said. price. By June AIA had walked away, package.
Prudential’s US life business leaving the Pru with a £377m bill Whether
Jackson recorded the highest profit in and shareholders demanding investors will
its history, at £1.2bn, a 28 per cent Thiam’s head. be prepared to
increase on 2009. IFRS operating prof- This does not seem to have fazed endorse him
it in the UK was up 11 per cent at Thiam. Trained in civil engineering that far remains
£673m. Its shares closed 4.9 per cent and at McKinsey, he served as minis- to be seen.
higher at 749p. TIDJANE THIAM
ANALYSIS l New Business Profit* (£m)
UK US
*Excluding Japan
Asia
+6
8%
£2,028m
Deals take backseat to organic growth
WHEN Tidjane Thiam pledged to ANALYSIS l Prudential McKinsey estimates that the com-
£365m double Asian profits by 2013, there 749.00 pound annual growth rate in China
760 p 9 Mar
were more than a few raised eye- will exceed 15 per cent for the next
£1,619m brows. He set the target in December five years.
of last year, soon after his disastrous 720
Elsewhere, the results beat expec-
£230m attempt to buy the Asian operations tations on just about every measure.
£761m of AIG for $35.5bn. Having pulled the IFRS operating profit was up 24 per
£1,205m plug on the transformational deal, 680
cent year-on-year to £1.941bn, beating
he quickly became a convert to the consensus by 24 per cent; new busi-
opportunities offered by organic ness sales were up by 23 per cent to
£273m £664m
growth rather than mega acquisi- 640
£3.485bn. And this was all without
tion. If the Pru could hit such gru- 13 Dec 5 Jan 25 Jan 14 Feb 4 Mar sacrificing the margin, which
£293m
elling targets alone, why bid for AIA widened by 100bps to 58 per cent.
in the first place? were up 24 per cent, also ahead of tar- After the AIA farce, Thiam faced an
It appears he was right, second get. uphill struggle to rehabilitate his rep-
time round at least. Asian operating Looking East for growth is a famil- utation. According to yesterday’s fig-
£902m profits according to the IFRS account- iar strategy, but it’s worth reiterating ures, he has made an excellent start.
£725m ing standard were up 29 per cent last just why Asia is such a hot property
£639m year, much higher than the 19 per for the likes of Prudential. In India
cent compound annual growth
implied in Thiam’s ambitious targets.
and China the life insurance penetra-
tion rate is just four per cent, com- BOTTOMLINE
2008 2009 2010
New business profits in the region pared to 13 per cent in the UK while Analysis by David Crow
CITYA.M. 10 MARCH 2011
Ranjit Singh Boparan has close to 50 per cent approval for his offer
AVI GOLDBERG
ROTHSCHILD
BOPARAN’S bankers were cautious
yesterday after the path was
cleared for their client’s £342m
takeover of Northern Foods.
"We hope that this is the end, and
that people will now accept the
offer,” was one banker’s response to
Greencore’s departure from the
race, though the news represents
the end of an ambitious gatecrash-
ing of what was seen by many in the
City as a done deal.
Leading the charge for Boparan
was Rothschild managing director
Avi Goldberg, an M&A veteran with
25 years’ experience in the City.
Goldberg is mooted to be the
banker behind Duke Street’s expect-
ed £215m purchase of noodle chain
Wagamama, announced yesterday.
Goldman Sachs was added to
Boparan’s advisory team mid-way
through the negotiations thanks to a
quiet word between Goldberg and
Goldman’s UK co-head Michael
Sherwood, insiders say.
TIME LINE | NORTHERN FOODS
16 November
Northern Foods and Greencore announce
plans for a £510m all-paper merger to create
a new firm named Essenta.
21 December
Northern reveals an initial approach from
Boparan, who starts to build his stake from
six per cent to around 11 per cent.
21 January
Two hours after a Takeover Panel deadline,
Boparan offers 73p per share, or £342m,
which the Northern board accepts.
25 January
Greencore hints that it will come back with a
new, cash-sweetened offer, sending Northern
shares up 17.5 per cent.
10 March
Greencore, after trying to mount a bid with
an unnamed private equity partner, decides
to walk away, leaving Boparan in the clear.
Shareholder rights are still being ignored Freelance rates surging
▲
REGULATION
BY ALISON LOCK
DEFENDING shareholder rights
remains an “uphill struggle” despite
almost 150 asset owners signing up to
a series of guidelines for best corpo-
rate governance behaviour, a key City
regulator will say today.
Almost 150 asset owners have
signed up to the Stewardship Code
launched by the Financial Reporting
Guess who I saw last night?
Enjoy art, music, drinks, tours, talks and workshops
Thursdays and Fridays 18.00 – 21.00. Free Admission
www.npg.org.uk l Leicester Square
Council (FRC) last July to push institu-
tional investors to involve themselves
in the strategy and governance of the
companies they invest in.
“If we are to make this code a real
success we have to look for evidence
as to how far it is actually changing
behaviour in a positive way,” FRC
chairman Baroness Sarah Hogg will
say. Hogg said Europeans remained
“sceptical” of the “comply-or-explain
concept”, in remarks prepared for a
Northern Foods fight over
▲
M&A
BY MARION DAKERS
BOPARAN’S takeover of Northern
Foods was all but sealed yesterday, as
rival Greencore walked away from
making a counter bid.
Ranjit Singh Boparan, who gate-
crashed Greencore’s planned merger
with Northern last November, bought
Northern shares in the open market
IN PARTNERSHIP WITH
speech to the National Association of
Pension Funds in Edinburgh today.
Hogg said the FRC had been work-
ing with policy-makers including the
European Commission, MEPs as well
as the OECD to explain the impor-
tance of stewardship.
The FRC is to evaluate the code’s
effectiveness in its first year through
a series of meetings with companies
about their relationships with
investors, she says.
News 7
yesterday while the share price lin- International and Crispin Odey are
gered below his 73p offer price, taking believed to be among those who sold
the chicken producer’s share up to out to Boparan yesterday.
the maximum 24.99 per cent. Several sources said yesterday that
His BH Holdings vehicle owned or Greencore, which had teamed up
had approval from 48.25 per cent of with an unnamed private equity play-
Northern Foods’ shares at 1pm yester- er in a bid to better Boparan’s bid,
day, ahead of a second acceptance cut- failed to agree with Northern’s pen-
off and well before the 60-day sion trustees about tackling its gaping
takeover deadline. deficit, which runs up to £500m
Hedge fund managers GAM under some measurements.
Clients add
£6.1bn to
F&C funds
▲
ASSET MANAGEMENT
BY ALISON LOCK
F&C ASSET Management reported its
first net fund inflow in five years yes-
terday but provided little new detail
on its future under new chairman
Edward Bramson.
Investors lodged £6.1bn with F&C
in 2010, creating a net £272m inflow
and taking funds under management
eight per cent higher to £105.8bn,
from £97.8bn in 2009.
Chief executive Alain Grisay said
the 76 per cent rise in gross inflows
from 2009’s level showed “growing
momentum building up.”
“It does please us but it is not a sur-
prise to us as it is an improving
trend,” he said.
But he said a review of F&C’s strate-
gy launched last month after a board-
room coup that saw chairman Nick
Macandrew ousted and Bramson
voted in, would only be published in
several months. “It is not done in a
rush as there is no need to come to
the rescue of the business,” he said.
Paul McCartney (‘Mike’s Brother’) by Sam Walsh © estate of Sam Walsh
Earnings per share rose slightly to
5.9p, from 5.8p in 2009 and above
forecasts for 5.7p. Pre-tax profit of
£46.7m also narrowly exceeded fore-
casts of £46.5m. Operating loss was
£3.1m, down from £5.9bn in 2009.
Analysts said F&C’s stock remained
risky as uncertainty over its future
could put off customers. F&C’s shares
closed down 3.27 per cent at 82.7p.
ANALYSIS l F&C Asset Management
95 p
82.70
9 Mar
90
85
80
75
70
13 Dec 5 Jan 25 Jan 14 Feb 4 Mar
Interim managers now charge an
RECRUITMENT
average of £725 per day, compared to
RATES for freelancers in the financial the previous high of £675 in 2008.
sector are soaring as firms scramble The increase in rates can be attrib-
to get enough risk and compliance uted to the continuing demand for
experts to cope with a tidal wave of interim managers with risk and com-
new regulation. pliance expertise, according to Kinsey
Executive search specialist Kinsey Allen.
Allen International said day rates for Financial services firms are grap-
interim managers in the financial pling with a skill shortage in risk and
sector have climbed 12 per cent so far compliance compounded by new reg-
this year compared to 2010. ulations in the wake of the crisis.
 8 News CITYA.M. 10 MARCH 2011

MAYFAIR TYCOONS THE RISE AND FALL OF THE TCHENGUIZ BROTHERS

The brothers who

love the high life
Vincent and Robert Tchenguiz’s arrests are only the latest
chapter in their sensational story. By Steve Dinneen

JK8IKK?<HL@<K
I<MFCLK@FE
K?<E<N:K)''_
K?<NFIC;ËJ=@IJK=LCC?P9I@;
CLOLIP:FDG8:K:8I

V
INCENT Tchenguiz’s 40ft yacht wealth was vast. Mayfair, South Africa
K_\C\olj:K)''_`jc\X[`e^Xhl`\ki\mfclk`fe%@kj lies empty at a port in Cannes, a and Côte d’Azur were among the
jfg_`jk`ZXk\[]lcc_pYi`[jpjk\dZi\Xk\je\Xi$j`c\ekXe[ party scheduled for tonight on places he called home. He boasted
indefinite hold after his arrest. three yachts – one 130-footer – a fleet
jlg\iY]l\c\]ÔZ`\eZp%@k[\c`m\ijXkilcpi\nXi[`e^[i`m`e^ Its bombastic name, Veni Vidi Vici, has of supercars and at least half a dozen
\og\i`\eZ\#n`k_jdffk_XZZ\c\iXk`feXe[X^`c\_Xe[c`e^% been the source of some amusement off-roaders.
since the brothers’ vast empire began Robert famously dated supermodel
8e[Xccn`k_k_\XnXi[$n`ee`e^hlXc`kp#Zfd]fikXe[ to unravel in the wake of the reces- Caprice, before marrying glamorous
sion. If things continue as they have anti-ageing cream entrepreneur
i\Ôe\d\ekk_XkC\olj`ji\efne\[]fi% been, he may be inclined to add perdi- Heather Bird.
di to the boat’s title: I came, I saw, I Lisa, not to be outdone, married
conquered, I lost. Vivian Imerman, the South African
At first glance Vincent and Robert businessman dubbed The Man From
Tchenguiz’s life seems like a classic Del Monte after he sold his stake in the
tale of rags to riches. His father Victor fruit company for £396m, as well as
fled Iraq to neighbouring Iran in 1948, banking a fortune on the sale of
raising the brothers and their sister whisky giant Whyte &
Lisa in Tehran. Mackay.
Vincent boasts of starting his busi- An acrimonious divorce saw
ness empire buying chewing gum at Imerman locked out of the
American football games and selling office he shared with some-
them on to his friends, before officials time business partner
got wise and confiscated his loot. After Robert; his computers
moving to the UK in 1979, the brothers raided for evidence of
rapidly rose to the top of the booming hidden wealth (later
property industry, first renting accom- ruled inadmissible by
modation to students, later to the a judge).
new- and old-money elite. The brothers’ busi-
They soon held London in their ness philosophy was
thrall. Their hedonistic parties, fre- to leverage to the max
quented by the likes of Formula 1 bil- and reap the rewards.
lionaire Bernie Ecclestone and EasyJet They were among the
founder Stelios Haji-Ioannou, were the first to bring securiti-
talk of gossip columns and glossy mag- sation to the UK, bor-
azines. They were regularly snapped rowing against the
leaving London’s trendiest night clubs, promise of future
usually accompanied by a string of earnings.
socialites. Even at the height of
Before the recession, Vincent boast- their empire there was
ed of winning £1m a year playing an intense rivalry
C\olj:ifp[fe C\olj<[^nXi\IfX[ C\oljJ`[Zlg poker; hitting a £1m jackpot when between the brothers.
Greece won the European Vincent, the eldest, saw
-'+Glic\pNXp# K_\?p[\# (,)DX`[jkfe\IfX[# Championship and staking £750m a himself as the more
:ifp[fe# <[^nXi\IfX[# J`[Zlg# day on currencies, futures and bonds astute, numerate of the
Jlii\p:I'+I= Cfe[feEN0-EN B\ek;8(+,?J trading. The depth of his personal two. He was also the
nnn%c\olj%Zf%lb&Zifp[fe nnn%c\olj%Zf%lb&\[^nXi\ifX[ nnn%c\olj%Zf%lb&j`[Zlg
'/++,*0(0') '/++,*0(0'( '/++,*0(0'* They held London in their thrall. Their Police
remove bags of
:K)''_]l\cZfejldgk`feXe[:F)Ô^li\j1liYXe-/%0dg^+%(C&(''bd #\okiX$liYXe.'%-dg^+%'C&(''bd #
hedonistic parties were the talk of gossip evidence from the
Tchenguiz
ZfdY`e\[-/%0dg^+%(C&(''bd %:F)\d`jj`fejZfdY`e\[0+^&bd columns and glossy magazines. offices
CITYA.M. 10 MARCH 2011 News 9

Vincent Tchenguiz, left,

Former Kaupthing bosses are
among those arrested in raid
with his sister Lisa and
brother Robert.

Picture: Alan Davidson

Einarsson briefly featured on Iceland’s main commercial banks

▲
ENFORCEMENT
BY STEVE DINNEEN
TWO other men understood to have
been arrested in London as part of
the investigation into the
Kaupthing collapse are Armann
Thorvaldsson, former head of
Kaupthing’s UK business and
Sigurdur Einarsson, who was
Kaupthing’s London-based execu-
tive chairman and chief executive.
Interpol’s wanted list before travel-
ling back to Iceland to be grilled over
allegations of market manipulation.
Two men were also arrested in
Iceland, and the total number of peo-
ple arrested was nine.
Icelandic authorities are running a
parallel investigation into the col-
lapse of Kaupthing. A source close to
the SFO told City A.M. the two coun-
tries are working closely together.
– Kaupthing, Landsbanki and Glitnir
– collapsed in the space of a week
under the weight of huge debts
racked up during years of aggressive
overseas expansion.
In January, Iceland’s Special
Prosecutor’s Office searched several
financial institutions, including the
central bank, as part of a criminal
investigation into the collapse of
Landsbanki.

more cautious. While he remained Kaupthing’s total capital base. Almost

largely a trading and property tycoon,
Robert branched out, investing in list-
ed companies, attempting to grow his
property empire from the boardroom
of firms including Sainsbury’s and
Mitchells & Butlers.
Robert become both a stakeholder
and major client of Icelandic bank
Kaupthing. His relationship was so
strong he was featured in Kaupthing’s
2006 annual report, next to the words
“Robert Tchenguiz knows a good deal
when he sees one”. His borrowing
from the bank – much of which was
used to pay debts to other lenders after
the onset of the recession – eventually
exceeded £2bn, more than half of
overnight Robert lost near to £1bn as
his investments were seized. Later,
after Kaupthing itself collapsed under
the weight of its profligate lending,
the extent of the exposure of the
Tchenguiz family was revealed.
Both sides have made claims and
counter-claims. Vincent is pursuing
£600m in damages, alleging he was a
victim of a conspiracy by Kaupthing’s
former management.
Vincent and Robert have vowed to
clear their names. After buying, sell-
ing and losing more than almost
anyone in London, it is doubtful this
is the last we will see of the
Tchenguiz brothers. DIARY: P10

PAST AND PRESENT | THE TCHENGUIZ ASSETS

London to
Robert Tchenguiz bought a near 10 per cent
stake in Sainsbury’s ahead of a rumoured bid
Copenhagen
from the Qatar Investment Authority in 2007.
from
£
29 .99
The stake was sold at a loss in 2008.

single
inc. taxes

Robert Tchenguiz built up a 29.7 per cent share-
holding in the managed pub group Mitchells &
Butlers, whose brands include All Bar One, but sold
it in 2008 after failing to force through a takeover.
He also had a stake in the Laurel pub group.
Vincent Tchenguiz created a business around
ground rents and other property holdings,
We fly from London Gatwick, London Stansted and Manchester. Price correct on 14 February for travel between
although recently he has been in talks with
banks to trade some of the debt in his Peverel
28 February and 17 April 2011. Variable charges for hold baggage apply and some payment methods attract a
business for equity. handling fee. See website for details. Photo credit: DenmarkMediaCenter.
 The Capitalist
10
THE PARTY’S
OVER FOR
TCHENGUIZ
BROTHERS
THEY came, they saw, they conquered –
and then the Tchenguiz brothers were
arrested by the Serious Fraud Office yes-
terday morning in connection with the
collapse of the Kaupthing Icelandic bank.
The dramatic raid at the property devel-
opers’ Mayfair HQ has been the talk of the
MIPIM property fair at Cannes, where the
brothers were due to host a glitzy party
tonight aboard their yacht Veni Vidi Vici,
currently moored in the harbour.
The yacht has been closed off to visitors
and the crew are remaining tight-lipped
about the fate of their employers, who are
currently detained in London.
Cue gallows humour from their con-
temporaries at MIPIM, where The Capitalist
hears the joke doing the rounds is
whether the brothers’ party will be relo-
cated to Bow Magistrates Court.
The colourful duo will be much missed
as the revelries at the conference contin-
ue – as one property chief said: “MIPIM
would be very dull if it was full of librari-
ans. Long may [the brothers] continue.”
But their absence won’t be mourned for
that long, it seems, as there are plenty of
other high-octane yacht parties to fill the
gap in the social whirl.
Last night, for example, Bruce Ritchie,
chief executive of Residential Land, threw
a party aboard his yacht Melody Nelson II,
followed by an intriguing “Ooh La La”
soirée hosted by a group of Russian oli-
garchs in a top-secret location, rumoured
to be a “very wild affair”.
And tonight – if anyone is still standing
– a property individual with £100m of res-
idential property assets is whisking a few
close friends off to Monte Carlo by heli-
copter for a private function.
However, don’t be fooled that the
Cannes property circus is just a jolly: “a
lot of serious business” is also being done
in the South of France, according to a sec-
ond, entirely sober, delegate.
Speaking from his seat in the sunshine
at an outdoor restaurant overlooking La
Croisette, he told The Capitalist: “If you took
even just 1 per cent of all the deals that
are being done in this restaurant as we
speak, you would be very wealthy indeed.”
EDITED BY
HARRIET DENNYS
GOT A STORY? EMAIL
thecapitalist@cityam.com
The Ooh La
La party
hosted by a
group of
Russian oli-
garchs was
rumoured to
be a “very
wild affair”
Yacht club: La Croisette told the crowd of bankers, “and not rely
is the scene of “serious on someone else to do it for them”.
business” at MIPIM As a finale, six of Nomura’s brave
Picture: Getty female staff – Joo Lee, Omotoni Osibodu,
Mariela Missailidis, Edleen John,
Charisma Patel and Ksenia Shebavalenko –
took to the office catwalk to model
Wakeley’s latest collection, empowered by
the designer’s passion for “creating looks
that help women in business”.
OUT WITH THE OLD
DON’T be caught out when HM Revenue &
Customs abolishes the maximum list
price for company cars on 6 April in an
attempt to net more income tax.
Nomura’s bankers model Wakeley’s designs Under the new rules, total tax paid by
City executives and their employers will
rocket by 182 per cent for a company car
GIRL POWER with a list price of £222,000 such as a
INTERNATIONAL Women’s Day was Ferrari 612 – a total tax bill of £50,000.
marked with quite some style at Nomura, But the real danger is for drivers of sec-
the Japanese bank that hit the headlines
recently for appointing its first female
ondhand supercars – you can pick up a
2005 model Ferrari 612 for about £65,000,
chief financial officer, Junko Nakagawa. but as a company car the tax bill will be
At the end of the working day, 100 of based on its list price of £177,000. So if in
the firm’s staff headed to the eleventh doubt, buy new – as David Heaton, con-
floor of the office for an evening with sulting partner at
fashion designer and businesswoman accountant
Amanda Wakeley, with introductions Baker
made by Paul Norris, global head of equity
research and co-head of the Women in
Nomura Network.
Wakeley spoke candidly to Nomura
employees about her struggle to build her
enterprise, including her darkest hour in
2009 when she had to buy back her busi-
ness and save 50 jobs in the UK.
“Businesswomen must be in complete
control of their business decisions,” she
CITYA.M. 10 MARCH 2011
No-shows: Robert and Vincent Tchenguiz
Tilly, advised: “Paying £40,000 of tax and
National Insurance a year to drive a car
worth £65,000 is not very attractive.”
CHRISTCHURCH-GOERS
AN update on the cycle ride planned by
Matthew Whitaker, programme manager
at Barclays, to raise money for the victims
of the New Zealand earthquake.
The group will now ride from the New
Zealand Memorial at Hyde Park Corner to
Christ Church, Oxford – not Christchurch,
Bournemouth, as originally planned –
reducing the trip by 50 miles to make the
22 May event “more inclusive”.
Oxford is also fitting because
Christchurch Cathedral in New Zealand
was founded by members of Christ
Church, Oxford in the mid-nineteenth
century. “It seems particularly poignant
that as Christchurch in New Zealand
starts to rebuild, the bike ride ends where
that city began more than 150 years ago,”
Whitaker said.
To donate to the cause, see http://uk.vir-
ginmoneygiving.com/team/FromLondonto
Christchurch.
ETHICAL INVESTING
FANCY a socially responsible investment
(SRI) at no extra cost? As ever, it sounds
implausible, but Deutsche Bank has this
week launched an exchange-traded fund
to give investors that warm glow of giving
to charity without the pain of plunging
their cash into the bottomless pit of
underperforming SRI indices.
Newly listed in London, the exchange-
traded fund (ETF) is part of Deutsche’s
db x-trackers line, the exception
being that its 0.2 per cent fee will
add to The Global Fund, which
draws on a war chest of $12.7bn to
fight tuberculosis, malaria and
AIDS. As the old adage goes, chari-
ty begins with ETFs...
CITYA.M. 10 MARCH 2011 News 11

NEWS | IN BRIEF
Retailers slam ban CITY VIEWS: ARE YOU CONCERNED ABOUT THE
BAN ON TOBACCO DISPLAYS?
Interviews by Marion Dakers and Eric Wilkens
EnCore plans drilling spin-off
Oil and gas explorer EnCore Oil said yes-

on smoking displays
terday it was considering floating a new
company containing its exploration
BYRON KEOWN | MANAGEMENT SOLUTIONS assets to raise money for a drilling pro-
gramme. EnCore said it would have a
significant stake in the new company,
“Limiting advertising may help people who are which would be listed on AIM and
trying to quit by removing obvious reminders, or expects to retain operatorship control. “I
LEISURE vending machine tobacco sales from believe that this would re-position
▲

BY KATIE HOPE October, is aimed at reducing the prevent children from buying them. Though see- EnCore primarily as an asset develop-

RETAILERS yesterday slammed the

number of people who smoke.
Health secretary Andrew Lansley,
ing cigarettes brings smoking to the mind, it does- ment company with significant exposure
to exploration upside,” said chief execu-
government’s move to ban tobacco who published the plans to coincide n’t make people buy a packet who otherwise tive Alan Booth. The firm also posted a
displays as expensive and with national No Smoking Day, said wouldn’t smoke. But clearly something needs six-month pre-tax loss of £3.8m, com-
ineffective. he wanted to reduce smoking rates pared with a profit of £15.5m a year
From April next faster over the next five years than to be on display – otherwise how will ago.
year, large retail- the previous five. people know the prices? ”
ers will be But retailers said there was E.ON expects two years of gloom
forced to “no evidence” axing displays German utility giant E.ON said yesterday
hide would reduce smoking. it sees two tough years ahead as the
ciga-
rettes,
James Lowman, chief execu-
tive of The Association of
HARRY BOOTY | KINGS COLLEGE LONDON cost of a tax deal struck with the gov-
ernment on nuclear plants, higher gas
rolling Convenience Stores, estimat- costs and lower power prices keep a lid
tobacco ed the new regulations “I don’t think it will make much of a difference. on profits. The firm, which is four
and other would impose £40m of months into a major restructuring,
tobacco products costs on retailers.
I don’t think people will smoke less or stop if warned of an expected fall in core prof-
under shop coun- The government is advertising is limited or stopped altogether. its in 2011."The transformation process
ters, with the same
ban enforced for
also consulting on intro-
ducing plain packaging
As far as I can tell, people don’t buy demands a lot of trust in E.ON and its
management from all our stakeholders,”
small retailers from for cigarettes, in a bid cigarettes because of advertising – the said chief executive Johannes Teyssen
April 2015. to reduce the promo- reasons for smoking are not as yesterday. “The next two years will be
The counter ban, tional impact of economically tough for us.” Net profit
which follows a ban on logos. simple as that.” for 2010 fell 28 per cent to €6.28bn
(£5.4bn), on a 16 per cent rise in rev-
enue to €92.9bn.

Uganda uncertainty
mars Tullow results
ENERGY joint venture with Total and field is the site of Ghana’s first
▲

BY MARION DAKERS
OIL explorer Tullow Oil posted a 361
per cent rise in pre-tax profit yester-
day after a “transformational year”,
though its shares fell 3.2 per cent
due to concerns about its Ugandan
project and some missed forecasts.
The firm said its pre-tax profit
for the year was $152m (£93.8m) for
the year, short of consensus esti-
mates of $192m, which was
blamed on higher than expected
write-offs and administrative costs.
Surging oil prices caused a 19
per cent rise in revenue to $1.9bn,
while production was broadly flat
at 58,100 barrels of oil per day.
Investors were hoping for an
update on Tullow’s $10bn Ugandan
CNOOC, which has been awaiting commercial oil production and is
government approval for close to a 34.7 per cent owned by Tullow.
year. But the firm said it has given up
Tullow did not give new details on two oil blocks in the
on the partnership, but chief exec- Democratic Republic of Congo,
utive Aidan Heavey later told which it lost last June when the
reporters: “We’re at the stage now government re-awarded the explo-
where all the main points have ration rights.
been agreed so we’re just finalising
the documentation.” ANALYSIS l Tullow Oil
Heavey said in a statement that 1,500 p 1,413.00
2010 “was undoubtedly a transfor- 9 Mar
mational year for Tullow” and that
production could rise to up to 1,400
92,000 barrels per day this year.
The company said it expects its
new Ghanaian wells to reach a rate 1,300
of 120,000 barrels per day within
five months, with a local stock list-
ing also in the pipeline. The Jubilee 1,200
13 Dec 5 Jan 25 Jan 14 Feb 4 Mar

ANALYST VIEWS: HOW WERE TULLOW RESULTS? By Marion Dakers

JOB LONGBROEK RICHARD GRIFFITH

DAVY STOCKBROKERS EVOLUTION SECURITIES

“ Exploration continues to be a
major source of new value for the group.
During the year, it participated in 29 wells
with an 83 per cent success rate. If we take
into account Ghanaian discoveries and the
hopefully reinvigorated Ugandan business,
“ Tullow had a very good 2010:
reserves and resources increasing 60 per
cent, its first deepwater development off-
shore Ghana started up on time and had an
83 per cent exploration success. Yet the
shares are only up 15 per cent year on year,
output net to Tullow of significantly over reflecting how the Ugandan issue has

” ”
200,000 barrels per day is possible, dragged on the stock.
changing the group’s profile entirely.

CHARLIE SHARP | MATRIX

“ The financials were a smidge lower than expected but primarily due to higher finance charges. The

”
Julbilee field is performing just about in line with expectations, although the ramp up to 120,000 barrels of oil
per day is a tad slower than initially expected. Still no resolution on Uganda, nor any indication of timing.
This should not be a surprise, but pressure will mount to sort this quickly now that the election is over.
 12 News CITYA.M. 10 MARCH 2011

Rolls Royce NEWS | IN BRIEF

Halma buys Swiss medical firm
Shares in safety equipment group Halma
rose five per cent yesterday, one of the

reveals €3bn FTSE’s top risers, following its acquisi-

tion of Switzerland’s Medicel, a maker of
optical devices. The company spent
£46.6m on buying the firm, with a fur-
ther £20m depending on future per-
formance. Goldman Sachs analysts said

engine offer the acquisition “is likely to be well

received, particularly considering the
trends towards an ageing population”.

Profits bounce at Yule Catto

Chemicals maker Yule Catto posted a 19
per cent rise in its underlying pre-tax
ENGINEERING cent stake in Tognum, which makes profit to £47m yesterday, boosted by
▲

BY MARION DAKERS
ROLLS-ROYCE unveiled its €3.2bn
(£2.7bn) plan to team up with car com-
pany Daimler to buy industrial engine-
maker Tognum yesterday, in what
could be one of the FTSE firm’s biggest
ever purchases.
Tognum’s shares edged past the €24
per share offer price yesterday, howev-
er, when it said it had not yet agreed
the deal price with the duo.
Rolls, which first declared its inter-
est on Monday, said the 50:50 bid rep-
resented a 30 per cent premium on
Tognum’s share price on Friday.
Rolls and Daimler plan to create a
joint venture made up of Germany-
based Tognum and Bergen, one of
Rolls-Royce’s engine businesses.
Daimler already holds a 28.4 per
engines for ships and trains.
The firms said they would keep the
existing manufacturing sites and
expected the venture to create new jobs.
Tognum chief executive Volker
Heuer said: “It would put us in an
excellent position to play an active role
in shaping the further consolidation
of the market.”
The offer is subject to competition
clearance and to at least 50 per cent
acceptance from investors.
Analysts at RBS Hoare Govett, Rolls
Royce’s broker, said in a note: “The
more we’ve thought about the pro-
posed transaction, the more we’ve
grown to believe it is a major strategic
advance for RR, but at a sensible price
and in a quite prudent manner.”
Rolls Royce shares gained 3.2 per
cent to close at 619.5p yesterday.
lower finance costs and a strong per-
formance in its polymer division, and the
firm said it made a good start to 2011.
Yule Catto, which bought Germany-
based latex maker PolymerLatex in
December, said it further planned to
ANALYSIS l Rolls-Royce expand its polymer business.
660 p
Melrose eyes its next purchase
619.50 Manufacturing buyout firm Melrose
9 Mar posted a 44 per cent leap in full-year
640
profit to £171m yesterday, hiked its divi-
dend, and said the time was ripe for its
620 next major buy. Melrose, which has
grown by purchasing underperforming
businesses, was confident its strategy
would continue to deliver in 2011, and
9 Feb 16 Feb 23 Feb 2 Mar 9 Mar said it was eyeing another purchase.
Revenues rose six per cent to £1.4bn in
2010, with much of the growth coming
Rolls Royce chairman John Rose, due to retire soon, unveiled the plan Picture : REUTERS from recent purchase FKI.

EADS back in
the black on
Interserve posts a ...as it races Costain
new orders lift decline in profit... in bid for Mouchel
The company, which provides serv- Costain was rejected by Mouchel
▲

AVIATION
▲

AIRBUS parent EADS returned to prof-
it in 2010 and bagged a slew of new
aircraft orders, it announced yester-
day, pushing its shares up even as air-
lines fretted about surging oil prices.
EADS posted higher than expected
2010 revenue of €45.8bn (£39.3bn), up
seven per cent, and operating profit
of €1.23bn. It restored a dividend of 22
cents after posting a net profit of
€553m.
Downpayments from airlines hand-
ed EADS a record cashpile of €12bn at
the end of 2010.
SUPPORT SERVICES
MAINTENANCE and outsourcing
firm Interserve reported a decline in
full-year pre-tax profit yesterday, cit-
ing challenging conditions, and said
it expected stable trading conditions
in 2011.
Interserve, which last month made
a cash and shares approach to peer
Mouchel, posted pre-tax profit for
2010 of £64.1m compared to £89.2m
in 2009.
The results were slightly below the
average forecast from nine analysts
for pre-tax profit of £68m.
ices to clients such as the BBC, the
Ministry of Defence, the NHS and
Sainsbury’s, said profit was lower
than in 2009 because of a downturn
in its equipment services division.
Interserve said both its project
services and support services had
reported improved results and that,
going forward, it expected to benefit
from an improved outsourcing mar-
ket in the UK.
The company is paying an
increased final dividend of 12.4p,
bringing the total dividend for the
year to 18p.
SUPPORT SERVICES
ENGINEERING and construction
firm Costain said it has not pulled
out of the bidding for Mouchel,
despite the support services group
turning to Interserve as preferred
suitor.
“We haven’t walked away and we
are very much in an offer period,”
said chief executive Andrew Wyllie.
But Costain added it was also pur-
suing a number of large acquisition
targets after reporting a 54 per cent
rise in profits last year to £27.9m, on
revenues of £1.02bn.
despite improving on its previous
proposal of 0.5531 Costain shares
plus 30p in cash for each Mouchel
share, with the target turning
instead to an unspecified alternative
offer from maintenance and out-
sourcing group Interserve.
“We are the preferred offeror at
this stage of the game, so at this
stage there’s no reason to suggest
that that could change,” Interserve
chief Adrian Ringrose said yesterday,
adding he sees no further Mouchel
developments for a number of weeks
as it carries out due diligence.

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CITYA.M. 10 MARCH 2011 News 13

Why filling in the census improves your life

are you?
Yes, it might feel like Big Brother
plopped on our doormats this week.
The 2011 census asks questions
that probably many of us would find
intrusive coming from friends – but
it is the government asking.
Not answering is not allowed –
VIEW FROM CITY HALL you get fined if you don’t. But even
ANTHONY BROWNE ignoring the fear of a fine, there are
plenty of reasons to fill out the
form. The census tells us intriguing
range of uses, and filling it out will,
quite literally, be good for you, your
community – and the economy.
At the last census, in 2001, the 14
areas of the UK with the lowest
response were all in the capital. The
national average response was 94
per cent, while it was 85 per cent
across London, and just 64 per cent
in affluent Kensington and Chelsea.
It is London residents who lose out.
Over a quarter of public spending in
form. It is estimated that one
uncompleted form reduces public
spending by £600.
A poor census response also
affects commercial services. The
main users of the census are not
government, but companies work-
ing out where to allocate billions of
pounds of investments around the
country. They use detailed analysis
of how many people live how far
from a location; and what the socio-
companies use census data to
inform decisions ranging from
where to put a new outlet, which
branches to close and which prod-
ucts to offer. This applies to big out-
lets like supermarkets, as well as
smaller ones like convenience stores
and pubs. Even golf course entrepre-
neurs use the census to work out
where to lay down a new fairway.
Your form could help prevent the
closure of your Post Office branch.

S
O, how old are you? Have you
ever been married? Who do
you live with? Do you have a
mortgage? How many bed-
rooms do you have? What religion
things like the fact that London
school children speak a total of 233
languages.
But that is just the visible tip of
the iceberg. The census has a wide
London - £19.3bn – is dependent on
population figures. Your child’s
school, your local GP surgery or the
bus or tube you travel to work on
benefits from you completing the
economic profile of those people So, don’t let a few minutes dither-
are. ing lead to a decade of underinvest-
Barclays, Boots, Marks and ment. Get out your pen!
Spencer, Sainsbury’s, Tesco, Anthony Browne is an adviser to the
Whitbread and many other major Mayor of London

ITV back as a
blue chip firm Lighten
Lighten
the early 1980s, the firm has grown
you
yourr
▲

CAPITAL MARKETS
slowly and only listed in London as
BY RICHARD PARTINGTON recently as 2007. The pair still hold
BROADCASTING giant ITV has returned around 50 per cent of the firm’s stock

w
workload,
o
or oad,
orkl
to London’s blue chip share index in between them.
the latest reshuffle of the FTSE 100. Hargreaves told City A.M.: “Its quite
The group fell from the top flight in remarkable isn’t it. I think it’s a first
2008, yet has returned under the lead- too, I don’t think anyone has created a
ership of former Royal Mail boss Adam FTSE 100 company with no borrowings
Crozier. and no acquisitions. We’ve done it all
Financial services firm Hargreaves through organic growth.”
Lansdown also joined the elite share Energy firm Wood Group also joined

red10
red .co.uk
10 .co.uk
index, in an unprecedented move for the FTSE 100, at the expense of Bunzl,
the Bristol-based broker. Alliance Trust and African Barrick Gold.
Founded by accountants Peter The changes take effect from the
Hargreaves and Stephen Lansdown in start of trading on 21 March.

Firms exiting/entering the FTSE100

The firms demoted are:
The firms promoted are:

Wood Group Bunzl

ITV Alliance Trust

Hargreaves African
Lansdown Barrick Gold

Johnston press tumbles as chief

stands down and revenue slumps We’ve ccreated
We’ve
iiPhone
Phone A
reated our
App
pp w
our vvery
where
ery o
here yyou
ou ccan
ownwn rred10
ed10
an ssearch
earch
in other media markets could by-pass fforor the
the rright
ight positions
positions wherever
wherever a and
nd
▲

BANKING
press companies, which are also strug-
REGIONAL newspaper publisher gling with falling circulation. whenever
w henever yyouou wwant.
ant. IIt’s
t’s ffree,
ree, fast,
fast,
Johnston Press endured a worse start The weak trading, together with ssimple
imple tto ouuse
se and
and updated
updated ttwicewice
to 2011 than expected after govern-
ment spending cuts hammered its
chief executive John Fry’s decision to
stand down by March 2012 and a fore-
daily.
d aily. W
Wee kknow
now you
you take
take youryour career
career
advertising revenue, wiping a fifth off cast that the economic outlook for vvery
ery sseriously,
eriously, w
which
hich iiss wwhyhy w
wee ddo
o
its market value. 2011 would remain uncertain, sent the same.
same.
The group, whose titles include the Johnston shares down more than 20
Scotsman and the Yorkshire Post, said per cent.
total advertising for the first nine Finance director Stuart Paterson Insurance a
Insurance and
nd A
Asset
sset M
Management
anagement
weeks of 2011 fell 11.4 per cent com- said the advertising market had been Boutique
B outique rrecruitment.
ecruitment.
pared with a drop of 6.4 per cent for poorer than expected. “Once the gov-
the whole of 2010. ernment got in, public sector recruit-
The gloomy update mirrored a simi-
lar outlook from rival Trinity Mirror
ment really dropped,” he said. The
British government has cut its spend- We
Weaare
re rred10.co.uk
ed10.co.uk
and prompted analysts at brokerage ing on advertising as part of an overall
Altium to suggest the ad recovery seen drive to cut its budget deficit.
 14 Consumer News
Mike Ashley in clear after
Sports Direct fraud probe
▲
RETAIL
BY JOHN DUNNE
SPORTS Direct yesterday said none of
its employees were now under investi-
gation by the Serious Fraud Office as
it also gave details of a £220m refi-
nancing package.
In March 2010 the Competition
Commission formally cleared Sports
Direct’s acquisition of 31 stores from
struggling rival JJB Sports and in
October 2010 the Serious Fraud Office
“The awards are a good experience, an
excellent atmosphere with a real sense
of achievement and excitement”
Sir Roger Carr, Chairman, CENTRICA (Dealmaker of the Year)
What will you say?
Enter the City A.M. Awards 2011 and you could be
recognised as one of the City’s great personalities
or companies of the year.
Visit our website to see how you can enter:
www.CityAMAwards.com
or for more information, please contact Jo Pead:
020 8267 4043 / jo.pead@cityamawards.com
headline sponsor
(SFO) completed its investigation into
Sports Direct and JJB over alleged
price fixing. No charges were
brought on a corporate level but the
SFO had said the investigation in rela-
tion to individuals would continue.
Meanwhile the company, owned
by Mike Ashley, said it had sealed a
new three-year unsecured £220m refi-
nancing facility through a club of 10
banks led by HSBC, Barclays and
Handelsbanken. Its shares rose after
the announcement.
champagne reception sponsor
official venue partner
ANALYSIS l Sports Direct International
190 p 182.00
9 Mar
180
170
160
9 Feb 16 Feb 23 Feb 2 Mar 9 Mar
Sports Direct chief Mike Ashley has secured a three-year £220m refinancing facility
John Lewis in
growth plan
as profit lifts
▲
RETAIL
BY JOHN DUNNE
THE chairman of the John Lewis
Partnership (JLP) yesterday said he
planned to more than double the size
of the company in the next ten years
as the retailer unveiled bumper
results.
John Lewis saw profits rise by 20
per cent to £367.9m last year.
Like-for-like sales across the John
Lewis Group – which includes its
supermarket chain Waitrose as well
as its department stores – rose 0.6
per cent to £8.21bn.
Staff will share a bonus pot of
£194.5m – up 28 per cent on the pre-
vious year. The bonus will be the
equivalent of around nine weeks’ pay.
Chairman Charlie Mayfield said:
“We continually demonstrate that
our model isn’t just a nicer way of
doing business, it is a better way.
“We have doubled in size in the last
ten years and think we can do that
again and more.”
He said the company was planning
to pump £600m into the business to
Lookers bullish Revenue up for
on 2011 outlook Restaurant Group
▲
AUTOMOTIVE
LOOKERS yesterday reported a better-
then-expected full-year profit, driven
by a strong performance from its
motor and car parts businesses and a
reduction in costs, and the British car
dealer said it was well-placed for fur-
ther growth.
The 124-outlet firm, which sells
cars from manufacturers including
Ford, Vauxhall, Nissan and Toyota,
said January to December adjusted
pre-tax profit was £33.6m, compared
with £28.3m a year ago. Revenue
climbed 7.7 per cent to £1.9bn. It said
it would also pay a final dividend of
1.2p a share.
CITYA.M. 10 MARCH 2011
fund the expansion plan.
However, the company warned
that 2011 would be tough with the
VAT rise and tough consumer envi-
ronment taking its toll.
Mayfield added: “We are in a very
competitive market, we are extremely
aware of that. Our answer is to stay
ahead by increasing the scale of our
investment.”
“I am not complacent about it.
What we can’t say is that we have a
right to exist as we do. We are as good
as our results.”
JLP created 4,100 jobs in the last
financial year and expects to create
another 4,300 this year. Like-for-like
sales at the firm’s 28 department
stores rose 10 per cent.
At Waitrose, sales were also up by
10 per cent to £442m, with profit up
three per cent to £8m.
Chairman Charlie
Mayfield is planning to
double the size of the
company on the back of
strong profit
LEISURE
THE Restaurant Group yesterday post-
ed a 12 per cent rise in adjusted pre-
tax profit to £56m for the year to 2
January.
Revenue was up seven per cent to
£466m, although like-for-like sales fell
by one per cent at the chain which
includes Frankie & Benny’s, Chiquito
and Garfunkel’s.
During the year the group opened
17 new restaurants in the division,
which it said were trading ahead of
expectations and set to deliver strong
returns. The company benefited from
avoiding heavy discounting, as well as
its skill at opening new restaurants.
CITYA.M. 10 MARCH 2011 Economics 15

British exports bounce back Middle Britain set for big

“The marked improvement in the expansions since data were first avail-
drop in retirement income
▲

UK ECONOMY
trade gap is good news for the rebal- able in 1996,” according to Markit,
BY JULIAN HARRIS ancing story, particularly with which undertakes the survey.
BRITISH exports shot up by 5.4 per exports of goods picking up strongly “Plus, the export orders balance in find the drop in income during retire-

cent to a record value of £25.1bn in
January, helping to narrow the UK’s
overall trade gap to £3bn.
The deficit fell from £5.5bn in
December, when severe winter snow
and changes in aircraft import taxes
resulted in a record high deficit --
£9.7bn -- in visible goods.
The visible goods deficit dropped to
£7.1bn at the start of this year,
rebounding from December’s slump,
the Office for National Statistics
(ONS) revealed yesterday.
which tallies with the strong per-
formance of the manufacturing sec-
tor,” said Hetal Mehta of Daiwa
Capital.
“If this trend continues, it is likely
that net trade will make a positive
contribution to GDP growth,” she
added.
The official figures mirror positive
results from recent business surveys.
February’s purchasing managers’
index (PMI) showed visible exports
“registering one of the strongest
the February CBI industrial trends
survey was at a 15-year high,” added
Howard Archer of IHS Global Insight.
A survey of British exporters by
Travelex, released yesterday, showed
74 per cent were confident in current
trading conditions.
However, the UK’s trade surplus on
services -- unaffected by weather con-
ditions or the one-off fluctuation in
aircraft imports -- slipped slightly in
January, to £4.1bn, from £4.2bn in
December.
▲
UK ECONOMY
MIDDLE earners face a severe financial
squeeze in their retirement, raising
the spectre of future political unrest,
the think tank Chatham House
warned today.
Retirement income could plummet
by almost 60 per cent from pre-retire-
ment income for middle income
(£18,000 -- £44,000 yearly) households.
“The UK has a distinct problem with
middle income earners who are fail-
ing to save enough and are likely to
ment unexpected and unacceptable,”
said Paola Subacchi, one of the
authors of the report.
Chatham House reports if middle
income households save about 10 per
cent of their earnings after the age of
45, they could boost their wealth upon
retirement by as much as 25 per cent.
However, the UK faces milder prob-
lems than France and Germany, “in
which the state is committed to gener-
ous pensions for an ageing popula-
tion,” Subacchi added.

Divisions over CITY A.M. | SHADOW MPC REMAINS SPLIT OVER RATE RISES
ALLISTER HEATH | CITY A.M.
“Quarter point rise. While not sensational, the business surveys indicate a return to growth for 2011. Rates

interest rates should be gradually normalised to signal that the Bank is serious about fighting spiralling inflation.”

SIMON WARD | HENDERSON

“Half-point rise. The MPC’s forecast shows inflation 0.5 per cent above target in two years’ time. The economy
is rebounding strongly in early 2011, wage settlements have firmed and broad money is growing faster.”

set to widen GEORGE BUCKLEY | DEUTSCHE BANK

“My view is for no change. While inflation has been well above target, the stalled recovery at the end of
2010 suggests it would be prudent to await the outcome of current quarter growth before raising rates.”

MICHAEL SAUNDERS | CITIGROUP

interest rates at such a time could fur-
▲

UK ECONOMY
BY JULIAN HARRIS
THE Bank of England announces its
latest decision on interest rates today,
amid growing disagreement between
economists and business groups.
The Confederation for British
Industry (CBI) endorsed a tightening
of policy this week, despite contrary
statements from other business
groups.
“We must not allow inflation to get
back into the national psyche as a
given,” said CBI chief John Cridland.
“I don’t think a modest increase in
interest rates would destabilise an
export-led recovery,” Cridland added.
But yesterday the Institute of
Directors (IoD) and British Chambers
of Commerce (BCC) both reiterated
their opposition to a rise in rates.
“Be afraid, be very afraid,” said IoD
economist Graeme Leach. “There is a
very real possibility interest rates
could rise at this month’s monetary
policy committee, with the decision
on a knife edge.”
“We are very concerned that hiking
ther undermine the recovery,” Leach “Rates are likely to be hiked soon, prompted by rising inflation, elevated inflation expectations, the pick up in
said. pay deals and signs that the economy returned to growth in the first quarter of the year.”
Markets expect rates to exceed two
per cent next year, yet economist Tim
Drayson at Legal and General
VICKY REDWOOD | CAPITAL ECONOMICS
Investment Management yesterday “Leave interest rates on hold. The factors driving up inflation remain temporary. Rising oil prices add to the
argued that the Bank rate could be headwinds facing the economic recovery and increases the chances inflation will fall sharply further ahead.”
stuck at one per cent throughout next
year. TREVOR WILLIAMS | LLOYDS TSB
“It’s likely any increase in rates will
cause growth to slow more than the “Price inflation is well above target but there’s little risk of a wage-price spiral. Deflationary forces are build-
government expects,” he said. “This ing. Bank rate must rise this year, but not until the second-half when some of the uncertainties abate.”
will surely convince the MPC to halt
any further rate.”
This month all eyes will be on inter-
HOWARD ARCHER | IHS GLOBAL INSIGHT
nal Bank members Charles Bean and “Hold rates. Weakening consumer spending and faltering service activity fuels concern over the economy’s
Paul Tucker, thought to be next in line underlying strength while current elevated oil prices will hamper economic activity. Caution is justified.”
to join the hawks voting for a rate rise.
After the Bank’s decision, JAMIE DANNHAUSER | LOMBARD STREET RESEARCH
announced today, the members’ indi-
vidual votes are revealed in the min- “We side with the governor Mervyn King in the UK inflation debate. While risks are to the upside, we expect
utes of the meeting published on 23 consumer price index inflation to fall below target in 2012. The time has not yet come to raise rates.”
March.
Last month Spencer Dale joined
Martin Weale in voting for higher
GRAEME LEACH | IOD
rates with a 0.25 per cent rise in rates, “I would maintain the base rate of interest and leave quantitative easing unchanged. Money supply growth
while chief hawk Andrew Sentance is too weak to contemplate higher base rates at present.”
upped his vote to a 0.5 per cent hike.

The 50p top rate of tax to hit UK growth NEWS | IN BRIEF Sluggish growth in UK earnings
An index measuring growth in private sec-
tor earnings fell by 0.1 per cent this

and cut tax receipts, claims think tank German industry recovers in 2011
Industrial production in Germany sprung
back in January, following a snow-
affected December. Production rose by
1.8 per cent on the previous month, data
showed yesterday. The fall in December,
blamed largely on the winter freeze, was
▲
month, dropping to its slowest rate on
record, it was revealed today. “This is sig-
nificantly below the annual rate of infla-
tion of 4 per cent and places a big squeeze
on UK households which are now faced
with the twin pressures of high inflation
and weak disposable income growth,” the

UK ECONOMY
BY JULIAN HARRIS
THE 50p top rate of income tax will
hammer British growth and actually
reduce government tax receipts, a
Westminster think tank will say today.
“Evidence from overseas shows that
high top tax rates fail to produce pub-
lic revenues and injure economies,”
the Adam Smith Institute (ASI) argues.
Labour mobility among high earn-
ers, relocation by businesses, lost eco-
nomic activity and higher use of tax
shelters were calculated to drag on
growth and revenues due to more
punitive taxes, according to the
report.
“The introduction of the 50p tax
rate, along with the 40 per cent high-
er tax rate band and high capital gains
tax levels, has stifled our competitive-
ness and economic growth,” its report
states.
And chancellor George Osborne
should scrap the “revenue-losing”
£30,000 non-domicile charge, the ASI
is expected to demand, ahead of the
budget this month.
Yesterday the tax system was
attacked as “the longest and most
complex in the world,” by the ICAEW
group of accountants.
“It not only makes it harder for UK
businesses to operate but undermines
confidence in the UK as a place to
invest,” said ICAEW’s Ian Strange.
However, the coalition government
received a ringing endorsement of its
“Plan A” for fiscal consolidation today,
from City economist Dr Tim Morgan.
“The UK’s past fiscal profligacy is
unaffordable and unsustainable,” said
Morgan, author of a report released
today by the Centre for Policy Studies.
“The UK cannot borrow its way out
of a debt problem,” Morgan added.
“And the planned spending cuts are
not ‘massive’ -- the reality is that they
merely unwind a small part of the ear-
lier profligacy,” he said.
revised down to a 0.6 per cent contrac-
tion. “The German economy had an
excellent start to the new year,” said
ING’s Carsten Brzeski. “Another smash-
ing quarter is in the making.”
American wholesales rise again
US wholesale inventories rose in
January and sales set their fastest pace
in 14 months, suggesting re-stocking
and strong demand would give a lift to
the economy in the first quarter, it was
revealed yesterday. Total whole invento-
ries rose 1.1 per cent, to $436.88bn
(£269bn), the highest since November
2008. Inventories rose by an upwardly
revised 1.3 per cent in December.
Vocalink FTSE 350 report said.
French public deficit on the up
France’s annual government deficit
widened to €13.4bn (£11.5bn) in
January, up from a deficit of €9.2bn at
the same time last year, official data
showed yesterday. However, the deficit
for 2011 is still expected to fall to 5.9 per
cent of GDP, down from 7.5 per cent of
GDP in 2010, according to Laurence
Boone of Barclays Capital.
Inflation returns in Switzerland
Swiss consumer prices rose by 0.4 per
cent in January, compared to December,
official figures showed yesterday.
 16 News CITYA.M. 10 MARCH 2011

CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys in association with

Pinsent Masons
International law firm Pinsent Masons has
strengthened its funds team in London by
appointing Daniel Greenaway as partner.
Greenaway arrives from SJ Berwin, where he
was a senior associate in the private equity
funds formation team. Greenaway specialises in
structuring and closing buyout and debt funds,
as well as M&A transactions including the
establishment of co-investment funds, the acqui-
sition of funds and acquisition structuring.
Charles Stanley Private Investment Management, to its
Charles Stanley has appointed Clive asset management division. Charles
Worlock, formerly of BNP Paribas Stanley has also appointed Janet Hall,
previously divisional director at Brewin
Dolphin, to its Eastbourne branch.
Molson Coors
Sue Albion, legal director and company
secretary at Molson Coors, has been
promoted to the company’s board.
During her time at Molson Coors,
Albion has advised on the company’s
distribution deal with Grupo Modelo
and the acquisition of Sharp’s Brewery.
Colliers International
Colliers International has appointed
Philip Papenfus as head of south-east
offices to its national offices team.
Papenfus will join Colliers from his own
company, Cornerpoint, where he
worked with clients including Stanhope,
Legal & General and Threadneedle.
First State
First State Investments has appointed
Nonie Zaremba to its global equities
team as investment specialist. Zaremba
joins First State from SAC Capital,
where she held the position of senior
investment analyst.
Prupim
Real estate fund manager Prupim has
appointed Nina Jackson to lead its sus-
tainability and environment team.
Jackson will be responsible for develop-
ing the firm’s sustainability strategy and
environmental reporting programmes.
Linklaters
Jan Willem de Boer has been elected as
a partner at Linklaters’ Amsterdam
office. Previously, De Boer was a senior
M&A partner and head of the restruc-
turing practice at Dutch firm De Brauw.
Aberdeen AM
Christiaan van Beek has joined
Aberdeen Asset Management Asia as a
senior property investment specialist,
based in Singapore. Van Beek will pro-
mote the group’s European direct prop-
erty strategies into Asia.

To appear in CITYMOVES please email your career

SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com morganmckinley.com

BEST OF THE BROKERS To appear in Best of the Brokers email your research to notes@cityam.com

ANALYSIS l Old Mutual ANALYSIS l Weir Group ANALYSIS l Pinewood Shepperton

140 139.20 1,850
1,692.00 155
p 9Mar p 9Mar p
150.65
9Mar
1,750
130 145

1,650
120 135

13 Dec 5 Jan 25 Jan 14 Feb 4 Mar 13 Dec 5 Jan 25 Jan 14 Feb 4 Mar 13 Dec 5 Jan 25 Jan 14 Feb 4 Mar

OLD MUTUAL WEIR GROUP PINEWOOD SHEPPERTON

Nomura rates the insurer “neutral” and has raised its target price by 15p
to 130p. The broker views the firm as strategically challenged, with few
synergies between its businesses. Nomura believes that a disposal of
Nedbank this year is unlikely while management continue to simplify else-
where, but has raised its 2011 earnings per share forecast from 15.9p to
16.9p to reflect the firm’s progress to date.
UBS rates the engineering group “buy” with a target price of £20, up from
£19. Weir’s results on Tuesday hit the broker’s two main targets: earnings
per share passed 100p and sales at its SPM subsidiary were much better
than forecast. UBS has raised its 2011 estimates by six per cent despite
currency headwinds, thanks to the firm’s record order book, and now
expects net income of £242.4m for the full-year.
JP Morgan Cazenove rates the film group “neutral” with a target price of
173p. The broker has raised its earnings per share estimates by 1.8 per
cent for 2011 after better than expected full-year results on Tuesday and a
small increase in capital expenditure for new films. JP Morgan was sur-
prised by the firm’s 3.6p dividend payment, which came in above forecasts,
and a lower than expected net debt level of £42.7m.

Weak demand for commodity Texas Instruments

and bank shares drag on FTSE leads Wall St losses
concerns that high oil prices will sti- terday. Even though semis’ gains have

THELONDON fle the fragile global economic recov-

ery.
Prudential was the top riser, up 4.9
per cent to levels not seen for two THENEW YORK outpaced the broader market in the
last several months, the S&P 500

REPORT
Oil explorer Tullow Oil was the
biggest FTSE 100 faller, down 3.2 per
cent after the firm’s results lagged
forecasts and it gave scant detail on a
REPORT
years, after full-year results from and the semiconductor index have
Britain’s biggest insurer beat consen- been moving in the same direction,
sus forecasts and it said investors which could mean further declines
would get a payout of 23.85p per in the sector and spell more of the

W
EAK commodity and bank
stocks dragged Britain’s
leading shares index lower
yesterday as oil prices
climbed after intensified fighting in
Libya.
At the close, the FTSE 100 was
down 37.46 points, or 0.6 per cent, at
5,937.30, having hit a low for the
week at 5,922.66 in the afternoon
before recovering.
“Only a dyed-in-the-wool optimist
would be forecasting significant
short-term gains for shares whilst the
Libyan unrest continues,” said
Anthony Grech, head of research at
IG Index.
“With the FTSE currently trading
where it was at the beginning in
February ... it would not be too adven-
turous to expect this ‘up one day,
down the next’ trading pattern to
continue for the foreseeable future,”
Grech added.
Brent crude pushed back above
$115 a barrel yesterday as fighting in
Libya intensified, and after OPEC said
it saw no need to hold an emergency
meeting to ease oil supply fears.
Integrated oils were the biggest
blue chip fallers, with BP off 1.8 per
cent, retracing recent gains as
investors’ risk appetite diminished on
key Ugandan project.
Miners were weak as copper prices
fell on concerns high oil prices will
stoke inflationary pressures and curb
demand for metals, with Antofagasta
losing two per cent
Randgold Resources, however, ral-
lied 3.3 per cent as the gold price saw
safe haven support.
The West Africa-focused firm said
its Tongon mine in Ivory Coast was
operating as normal, albeit with
some interruptions and delays relat-
ed to the violence in the country.
Banks also suffered as fears about
the Eurozone sovereign debt crisis
resurfaced, with part-nationalised
British lenders Lloyds Banking Group
and Royal Bank of Scotland shedding
0.2 per cent and 0.8 per cent respec-
tively.
Portugal successfully sold two-year
bonds yesterday, but the cost of bor-
rowing was the most expensive since
it joined the euro, keeping alive con-
cerns it will need to request an inter-
national bailout.
Ex-dividend factors accounted for a
big chunk of the blue chip index’s
decline, with BHP Billiton, British
American Tobacco, Hammerson,
Serco, Shire and Standard Chartered
all losing their payout attractions yes-
share, up 20 per cent and outstrip-
ping the 21p expected by analysts.
“This expression of future confi-
dence in prospects should help to
mollify shareholders upset by the dis-
traction of the failed AIA approach
last year,” said Richard Hunter, Head
of UK Equities at Hargreaves
Lansdown Stockbrokers.
World stocks as measured by the
MSCI world equity index and the
Thomson Reuters global stock index
rose 0.2 per cent yesterday. The MSCI
index is only ticks away from its 30-
month high hit in mid-February.
Meanwhile, the FTSEurofirst 300
index was up 0.3 per cent, erasing ear-
lier losses, while MSCI’s emerging
equity index also gained 0.3 per cent
yesterday.
ANALYSIS l FTSE 5,937.30
6,100 p
6,050
6,000
6,950
5,900
5,850
5,800
13 Dec 5 Jan 25 Jan 14 Feb
weak outlook from Texas
A Instruments weighed on the
Nasdaq yesterday and pushed
an index of chip makers below
a key technical level in a worrisome
sign for the market’s six-month
uptrend.
The PHLX semiconductor index
fell 3 per cent to close below its 50-
day moving average, which repre-
sents medium-term momentum, for
the first time since September.
Texas Instruments led the losers,
after its earnings target disappoint-
ed Wall Street. Its shares fell 3.1 per
cent to $34.74.
“I think the markets are ready for
a sell-off that continues to be start-
ed by the Nasdaq futures markets,”
said Harry Michas, technical analyst
and stock-index futures trader at
Iharmarketmonitor.com.
9 Mar “If the Nasdaq futures fall back
below the 2,313.00 level again, it
should attract more profit taking as
well as some new shorts.”
The futures were trading around
2,320.
International Business Machines
helped the Dow tread water, as the
stock, the largest component in the
price-weighted index, rose 2.2 per
4 Mar cent to $165.86.
same for the overall market.
A 20-day correlation between the
S&P 500 and the semiconductor
index was at 0.77, with a reading of
1 suggesting a perfect correlation.
The semiconductor index is up 41
per cent since the start of
September, when the recent rally
began, while the S&P 500 is up 26
per cent.
High oil prices dragged on the
broader market on the two-year
anniversary of stocks’ bull run from
the S&P 500’s 12-1/2-year closing low
of 676.53, which was sparked by the
financial crisis.
The Dow Jones industrial average
dipped 1.29 points, or 0.01 per cent,
to finish at 12,213.09. The Standard
& Poor’s 500 Index shed 1.80 points,
or 0.14 per cent, to end at 1,320.02.
The Nasdaq Composite Index fell
14.05 points, or 0.51 per cent, to
close at 2,751.72.
Tech shares also felt the weight of
Finisar. The stock plummeted 38.5
per cent to $24.61 after the network
equipment maker forecast a dismal
fourth quarter, blaming an invento-
ry pile-up by telecommunications
equipment makers in China.
Finisar is up 100 per cent since
September.
CITYA.M. 10 MARCH 2011
Africa’s future
looks bright to
Renaissance
One fund manager
makes the case for
African optimism,
says Philip Salter
E
VEN in times of relative stability,
media reports on Africa lead
many investors to think they can
find better places for their money.
So with turmoil rolling across the north
of the continent this impression has
only intensified – the jubilation of
Cairo’s Tahrir Square has been replaced
by the brutality of Muammar al-
Gaddafi. However, if you have written
off the continent as a lost cause you
might be missing out on a great oppor-
tunity to buy in low. Now is the time to
look at Africa, according to Sven
Richter, head of frontier markets at
Renaissance Asset Managers.
Richter is bullish on holding a
diverse exposure in stocks across the
continent and puts forward a very con-
vincing case. The South African born
asset manager is passionate about the
potential of the people and companies
working in Africa, and the prospective
profits of tapping into their abundant
resources in the years ahead. He runs
two African funds available to the retail
investor: the Renaissance Pan-African
Fund and the Renaissance Sub-Saharan
Fund. The former has a significant
amount invested in Egypt, so with the
stock exchange still not open for busi-
ness, it is probably best to wait for the
dust to settle before taking a look. The
latter, though, is largely invested in
banks, consumer discretionary and
non-discretionary companies in Nigeria
and Kenya, so is not exposed to the cur-
rent areas of instability.
17
Wealth Management | Funds
The final frontier
ANALYSIS l Renaissance Sub-Saharan Fund
10.80k
GBP
10.60k
10.40k
10.20k
10.00k
9.80k
Source: Morningstar
9.60k
2010-10-1 2010-11-1 2010-12-1 2011-1-1 2011-2-1 2011-3-1
“The next five or 10 years in Africa
are going to be really good”, according
to Richter. He gives two examples of
how companies have made serious
headway despite difficult local condi-
tions. In Kenya, Equity Bank has pio-
neered lending to retail customers.
Prior to their entry into the market,
banks only lent to the government,
blue chip companies and people in sen-
ior management positions. Equity Bank
balanced the risks of lending more
widely by getting to know their cus-
tomers for three years prior to making
loans. The company has been a success
story, indicative of how innovative solu-
tions can overcome what others see as
intractable problems. Another mecha-
nism for growth can be seen in Nigeria
where MTN, the South African mobile
Contrarians and value
investors should be looking
for opportunities
phone company, has tapped into a mas-
sive market – in fact, Nigeria is now a
larger market for the company than
South Africa. As Richter says: “relatively
small steps in technology can have a
huge impact on growth in Africa.”
While everyone else is watching the
headline events unfold across north
Africa, contrarians and value investors
should be looking for opportunities.
Richter believes “now is a good time to
invest.” He “can’t tell you whether it is
going to be cheaper next month than it
is now.” But “if you have some money
and put it in over the next three
months you are going to be pretty cer-
tain of getting it at the bottom.”
Perhaps serious profits might soon be
borne out of the cradle of humanity.
18 Wealth Management | ISAs CITYA.M. 10 MARCH 2011

The glass is half full

for ISA investors in
stocks and shares
Time is ticking for those who wish to fill up the full
capacity of their savings allowances, writes Craig Drake
£10,200
Do you have an
ISA portfolio that’s

niquely
u tailored £7,000

to you? The amount that you can pour in has increased by £3,200 since 2007 Picture: REX

W
ITH the end of tax year dead-
line swiftly approaching,
investors should make sure
that they take advantage of
the generous £10,200 allowance for
individual savings accounts (ISA). This
can either be used in its entirety for
“The current low interest rate envi-
ronment, coupled with inflation,
means it is harder for investors to gain
returns on cash, meaning that now,
more than ever, is a good time to
invest in a stocks and shares ISA, pro-
vided that the additional risk to capi-

f traders do stocks and shares or up to £5,100 can tal is acceptable.”

Sel
be put into a cash ISA with the remain- The returns to be had by taking
der in stocks and shares. advantage of your combined
a
n’t want “People should absolutely be using allowance if you are investing as a cou-
c k m a rk et, but do c t S hares their ISA allowance”, says Lee ple are not to be sniffed at. According
in v e s t in the sto o p e n a self-sele Robertson, CEO of the wealth manage- to research carried out by Fair
Want to en the
rtfolio?  nd select
fits all’ po ortfolio a ment firm Quorum Investment. “With Investment Company, a couple who
‘one size . Tail o r y o u r p
e best re tu rn .
Selftrade ill yield th
the tax office looking at any and every had invested in stocks and shares ISAs
ISA with ou th in k w tax break and allowance, people since 1999 could have more than
nts that y ilts
investme nds and g should be taking advantage of their £275,000 today. “If an individual had
s , fu n d s , ETFs, bo full £10,200 amount.” invested their full allowance into a
from share is investe
d
• Choose y o ur money
Beyond the increased allowance stocks and shares ISA each year since
h o w over a cash ISA, of £10,200 versus 1999 – £7,000 until 2007, £7,200 from
ere and
when, wh on £5,100, the benefit of an investment 2007 until 2009 and £10,200 in 2010 –
• Decide subscripti
in b a c k your ISA ISA is the breadth of choice that is they would have invested a total of
u could w offered, not just stocks and shares, but £87,600,” explains Julie Smith, savings
• Plus yo s apply)
,680 (term also funds, gilts and bonds, exchange- analyst at Fair Investment Company.
up to £10
rm
r longer-te
ra p p e r d esigned fo ll a s ri se
traded funds (ETF), exchange-traded “Assuming growth of 7 per cent per
x -e fficient w a n fa ll as we commodities (ETC) and structured annum, the gain on this investment
An ISA is
a ta estmen ts c rules may products. Individuals can choose from would be £50,282, creating a total pot
 e v a lue of inv o u in v e sted. Tax e
investin g . ss than y . Selftrad a wide range of products to build a of £137,882. If their partner had done
u m a y g et back le u a l c ir c u mstances bespoke portfolio that suits their risk the same, the result is more than a
and yo d on indiv
id
appetite and investment objectives. quarter of a million pounds sheltered
nd depen t advice.
change a id e in v e s tm e n According to Catherine Penney, vice from the tax man.”
pro v
does not president of Barclays Stockbrokers, “in With this in mind and with only 25
the longer term there is a significant days to go until the crucial 5 April
n ISA now
benefit as income from ISAs does not deadline, people should be readying
s. O pen a count against your income tax their ISA shelter before the tax man’s
lftrader
Join the se
allowances, so they can effectively sup- demands rain down for another 12
o.uk/isa3
plement pensions.” months.
.c
.selftrade
Visit www 700 720 BEST BUY | STOCKS AND SHARES HIGH STREET ISAS
50
or call 084 Fund Name Provider Past performance Fund Annual charge
(over 3 years) risk
Global high income AXA 25.98% Lower 1.25%

Managed defensive Prudential 17.69% Low to medium 1.35%

UK index Legal & General 11.06% Medium to high 0.40%

Lines are open Monday to Friday 7.45am – 7pm. Calls may be recorded. Selftrade® is a trading name of Talos Securities Limited and FTSE all share tracker Virgin 8.59% Medium to high 1.00%
registered trade mark of Boursorama. Talos Securities Limited is incorporated in England and Wales (Registration No. 4196325,
Registered Address: Boatman’s House, 2 Selsdon Way, London E14 9LA), is authorised and regulated by the Financial Services
Authority (FSA Register No. 208271) and is a member of the London Stock Exchange and PLUS Markets plc. UK select opps AXA 28.23% Medium to high 1.50%
Source: Moneysupermarket.com 09.03.2011
CITYA.M. 10 MARCH 2011
Pouring into
the red liquid
market offers
tasty returns
Buying into fine wine is proving to be a
lucrative investment even in uncertain
times, writes Donata Huggins
A
COMPOUND annual growth
rate of 15 per cent since 1999:
sounds good, doesn’t it? It
sounds even better when you
find out that’s higher than US and UK
equity markets and comparable only to
property without, er, being property
and suffering its recent fate. Surely it
can’t get better than that? Well, actual-
ly, it turns out it can. Mainly because it’s
wine – and red wine to be more precise.
Investors are pouring into this liquid
market. You might imagine it to be the
preserve of continental types who
“know wine”, but the industry is matur-
ing into something the average trader
will feel more comfortable with. Buying
en primeur now looks more like buying
a futures contract, particularly when
you’re sat at home trading it
on an online platform.
For those socialised in the
ways of the City, fear not,
there’s an index. The Liv-ex
Fine Wine 100 offers a
benchmark. It tracks the
price of the world’s 100
most sought after wines.
Launched in 2001, it’s
climbed 200 per cent –
Wealth Management | Wine Investment 19
Dip into a maturing
investment class
Picture: REX
Discover a new world
that the inflation-adjusted income of
the top 1 per cent of US households
grew more than ten times faster than
the income of the bottom 90 per cent of
of opportunity.
households over the majority of the last
century. A good sign for those hoping to
sell a case or two of fine wine.
Another popular concern about wine
Offshore banking
investment is – somewhat bizarrely –
the link between the wine and the
crude oil price. Research by the
International Monetary Fund econo-
for expats.
mists Serhan Cevik and Tahsin Saadi
Sedik shows that the two correlate.
Wine, like crude oil, is sensitive to
macroeconomic shocks. Oil prices and
the Live-ex Fine Wine index both fell in
tandem during the downturn, and then
surged back up, increasing by 86 and 62 9JGPKVEQOGUVQOCPCIKPI[QWTƂPCPEGU
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this means that a 4 per
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mean a 22 per cent VJGUGEWTGQHHUJQTGNQECVKQPQH,GTUG[QPG
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and 15 per cent fall in of the world’s most respected international
remarkable considering wine. ƂPCPEKCNEGPVTGU
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Marchant from Bordeaux Index insists hectares in the 1990s to 7,823 thou-
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ANALYSIS l Multi sector annualised returns
30%
Overall
25%
1990s
20%
2000s
15%
*Source: GT Financial Stability Forum (www.jerseyfsc.com). Issued by HSBC Bank International, a trading name of HSBC Bank International Limited,
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Wine market FTSE 100 UK S&P 500 Gold MSCI Pacific CVKPCP[ƂXG[GCTRGTKQF&GRQUKVUOCFGYKVJQWTQHƂEGUKPVJG+UNGQH/CPCTGRTQVGEVGFD[VJG+UNGQH/CP%QORGPUCVKQPQH&GRQUKVQTU
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 Business Features
21

| Careers

When the boss is Don’t criticise

the boss.
Avoid the

out you can shine temptation to

show or to
explain that
Don’t be like Clegg, make the most of your you do things
so much
opportunity. Dr Mark Batey offers his tips
better

I
T’S a peculiar thing, but whenever
David Cameron goes away on holiday
or on overseas business, his deputy
Nick Clegg fails to shine. Recently
the deputy PM even said he had “forgot-
ten” that he was running the country. For
most people though, the boss being away
is a good opportunity to make their mark.
But then again, you have got to be sure
you don’t go too far and make it look like
you are trying to stab him in the back. So
how do you get the balance right? Dr
Mark Batey, creativity expert at
Manchester Business School, shares his
top five tips for shining when you are left
holding the reins.
with a Braveheart-esque rallying cry. A
quick word with everyone to let them
know that you are available, if they need
help, should simply suffice.
2. Don’t disappear. Whilst a tub-thump-
ing speech is probably not what people Stuck in the at the expense of making your boss look and exploiting new opportunities. So use
need, don’t be invisible either. Nick boss’s shadow incompetent. Remember, your colleagues the team around you and get inquisitive.
Clegg’s surprisingly low-key approach to will usually have built a strong relation-
leadership when David Cameron is away
has raised a few eyebrows. So spend a few
moments each day walking around, ask-
Picture: GETTY ship with your boss and criticism is likely
to make you seem petty. 5. Keep it simple. Being creative isn’t
an excuse to rip up the rulebook and
ing if people are okay and keeping your
finger on the pulse. 4. Get creative. Creative thinking is a
great way of using your boss’s absence to
establish radical new ways of working in
your boss’s absence. Returning to find
you have re-engineered the strategy,

1. Don’t rally the troops. The boss might

be away and your colleagues may well be
looking for some direction. However,
don’t misjudge this opportunity to
demonstrate your stunning oratory skills
3. Don’t criticise the boss. Avoid the
temptation to show or explain how you
would do things much better than the
boss. You may want to stamp a little of
your own authority or flair onto the day’s
proceedings – by all means do so, but not
your advantage. Often challenges call for
a creative response – be brave and don’t
be afraid of bending the rules. Your boss
will not be impressed with a lack of initia-
tive, courage or if you stick your head in
the sand. Remember, working creatively
is about finding solutions to problems
workforce and that the company is head-
ing in a completely new direction will
never do you any favours. Timing is
everything – so whilst your boss is away
use the opportunity to explore new
options and wait until they return to
implement dramatic change.

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 Lifestyle
22 CITYA.M. 10 MARCH 2011

Vintage cars meet zorbing

at the British Leisure Show LIFE
COACH

It’s fun for all the The three tips

family and heaven
for boy-racers, writes for chairing a
Jeremy Hazlehurst
great meeting
W
ITH the economy seemingly

stuck in the doldrums, we all
need a break. If you are short of
ideas then you could do worse
than head along to the British Leisure
Show, which will be held on 11-13 March at
the Royal Windsor Race Course.
Now in its second year, the show is the
brainchild of James Brooke, who after
working on various other events decided
that a bit of entrepreneurial gumption was
needed in the downturn, and set out to cre-
ate the biggest show of its kind in the UK.
With less money in their pockets, people
are looking for getaways without leaving
these shores, he says, and so he set out to
give them just what they want. “Value is a
word being used by prospective visitors
and those looking to exhibit and we have
to recognise this,” he says. “But it doesn’t
mean we have to cut corners or trim any-
thing, it means we have to be assertive
when looking at these exciting challenges
and opportunities as they present them-
selves.” Families are the focus, and the aim
is to have something for everyone. “We
have worked hard to develop a unique
event that is affordable and of interest to
all members of the family,” says Brooke.
“Variety”, he says, is what people want
and so instead of running a show that
focuses on a theme – boats, say, or skiing –
the British Leisure Show has everything
from an F1 simulator to log-cabins, motor-
boats, horse-riding, archery and water-zorb-
ing (in which you hurl yourself across open
water in an inflatable see-through sphere).
There will even be a display of holiday
homes, including the last word in mobile
luxury, which costs £500,000. In total, over
300 businesses will be showing their wares.
This is the place to be for petrol heads
too, as the British Motor Festival will also
be taking place at the same venue at the
same time. There’ll be a fleet of 150 Harley
-Davidsons, Rolls Royces, Morgan sports
cars and more supercars than you can
A Morgan car, above;
James Brooke, left
shake a dipstick at. Boy racers will be well
catered for, with the chance to set the
fastest lap on the new EA computer game
Shift 2:Unleashed, which won’t be in the
shops until a fortnight after the show. And
they will even show the England-Scotland
Six Nations game in the grandstand.
The formula certainly hit the spot with
the Great British public last year, with
21,000 people coming through the doors, a
number that Brooke hopes to significantly
increase this year, and the enthusiasm is
matched by exhibitors. “Despite the down-
turn we have found investors that believe
in what we are striving to achieve,” he says,
“which for me speaks volumes.”
British Leisure Show, Royal Windsor Race
Course, 11-13 March
WHAT’S ON OFFER | HIGHLIGHTS
British Motor Festival – heritage cars and
owners’ clubs rub shoulders with the most
powerful supercars – see Harley-Davidsons,
Rolls Royces, Morgans and much more.
Watersports – there’ll be a wide range of
different boats and watercraft including a
new 35ft Sealine motor boat, a traditional
Cornish Crabber yacht, river boats, jet skis,
dinghies and sports boats
Camping – whether nights under canvas,
VW Camper vans or the funky new
Tearpod caravan are your thing, there’s
something to suit everybody
Outdoors For lovers of the great outdoors,
there’s shooting, gliding, water-zorbing,
cycling – and even owl-handing
C
HAIRING a meeting can be a daunting
experience, but one that sooner or later
we all have to face. Professor Cliff
Oswick is in charge of organisational
theory at Cass business school in London, and
also head of a faculty of 130 staff – and esti-
mates (with a sigh) that he chairs about 60
meetings a month. He has three tips for how
to chair a meeting.
His first is to have an agenda. “Have it on
paper, or some sort of visual display, and
make sure that you ask at the outset if other
people have anything to add,” he says.
“Leaving things until ‘any other business’ is
problematic, as you have no idea how long it
will go on.” So, have a clear idea of the items
to be discussed, and stick to that agenda.
“It’s easy to bleed into other points that are
going to be raised later.”
The second point is to make sure that
everybody gets to have their say. Those who
speak loudest shouldn’t be allowed to domi-
nate, and neither should it become a free-for-
all. If some people dominate the
conversation, say: “Great, that’s interesting,
how do others feel?” Elicit general commen-
tary. If you see other people shaking their
heads or otherwise indicating dissent as one
person is talking you should invite comment
from them. It’s all about the balance of
framework and flexibility. “A good chair
knows the difference between controlling
and facilitating,” says Oswick.
This is somewhere else you have to be flex-
ible. Structure is necessary, but you have to
be willing to adapt and if something is highly
emotive or generates an extreme reaction
then you should spend more time on it.
The third and final tip is to make sure
there are tangible outcomes. “It is important
to get closure, to agree an action, or that no
action is required – even deciding that you
need to take no action is an outcome.” The
worst thing, he says, is when a meeting does-
n’t result in tangible results. Sounds easy.
Jeremy Hazlehurst

THE MAN BRINGING CHELTENHAM TO THE SQUARE MILE NEXT WEEK

TIMOTHY BARBER

I
N 18 months, Simon Parker Bowles’s
Cornhill restaurant, Green’s
Restaurant & Oyster Bar, has become a
firm City favourite, mixing time-hon-
oured qualities – simple but sumptuous
food, clubby surroundings, a very well-
stocked cellar – with a theme that reflects
Parker Bowles’s own particular passion:
horse racing. The Runner Bar takes its
name from the sport, the walls are hung
with racing colours from many of the coun-
try’s leading stables, and indeed his busi-
ness partners include two prominent
racehorse owners.
It’s a passion that’s shared by many in
the City, of course, and next week Parker
Bowles is taking the theme to its logical
next step with a grand – and no doubt suit-
ably rowdy – event to celebrate the start of
the Cheltenham Festival. “On Tuesday, the
Simon Parker Bowles at Green’s Restaurant & first day of the festival, we’re hosting a big
Oyster Bar. Picture: GETTY lunch with TV screens showing the races, a
three-course lunch, sweepstakes in which
you can pick horses to win a prize, and gen-
erally getting into the spirit of the festival.”
For those keen to lap up the atmosphere
of Cheltenham but unable to make the
trip, the event – named Cheltenham in the
City – should be a godsend, and it’s all to
raise money for a good cause too. Parker
Bowles has teamed up with Raising the
Stakes, a charity fund set up by Ladbrokes
CEO Richard Glynn to raise money from
the gaming industry for Great Ormond
Street Hospital, an institution Parker
Bowles credits with once saving the life of
one of his sons.
So will he be picking Denman, Kauto
Star or Imperial Commander for the Gold
Cup? “None of them – I’m going for Long
Run,” he says. “He won the King George,
he’s in form and he’ll get a decent price
because people think he won’t run well at
Cheltenham.” Take note.
CHELTENHAM IN THE CITY – 12-6PM, 15 MARCH 2011
Tables for 10 can be purchased
for £1,750, including sumptuous
dining, racing action screened
live and the following activities:
Ladbrokes will be offering a chari-
ty tote service in which guests
can buy tickets for as many hors-
es as they like to win a cut of the
pot if their horse wins.
A raffle with the chance to win a
night’s stay at the luxurious
Ellenborough Park in Cheltenham,
two tickets for an exclusive F1
party and a fine dining taster
experience at the Greenhouse.
A horse auction prior to the
Champion Hurdle, the day’s head-
line race, will give guests the
chance to bid to back their
favourites in return for prizes
including a morning on the gallops
with champion trainer Paul
Nicholls; and a weekend break at
The Augustine hotel in Prague.
All proceeds will go straight to
the charity. For more information
and to purchase tables please
contact Rebecca Hannawin on
020 7239 3174 or email rebec-
ca.hannawin@gosh.org
VENUE:
Green’s Restaurant & Oyster Bar,
14 Cornhill, EC3V 3ND.
www.greens.org.uk
CITYA.M. 10 MARCH 2011
WHAT’S NEW IN
GADGETS AND
TECHNOLOGY
BY TIMOTHY BARBER
SPOTIFY HITS THE MILLION USERS MARK
While Charlie Sheen has made tech headlines as
well as tabloid ones for drumming up a million
Twitter followers in just 24 hours, music stream-
ing service Spotify has taken a bit longer to
reach its own seven-figure landmark – a million
paying subscribers. The company, which allows
users to create and share their own music
playlists, was last month reported to be in talks
with Russian tech venture firm DST over an
investment that valued the company at around
$1bn. This week it announced passing the mil-
lion-punter mark for those paying either £4.99
monthly for ad-free music on their PC or Mac via
the Spotify Unlimited service, or £9.99 for the
Spotify Premium mobile app service. And the
company hasn’t even launched yet in the US, the
world’s biggest music market.
PERSONAL RADIO FROM WE7
Spotify may be the highest profile, but it isn’t the
only service providing music streaming on the
move. One interesting rival is We7, a free, adver-
tising-supported music streamer which this
week launched a “personal radio” service (don’t
worry, there are no DJs involved) that loads your
phone with music when it’s wi-fi connected, so
that you can listen back when you don’t have a
data connection. Simply called We7 Radio, the
app generates “radio stations” based around the
artists you select, and adds new content to the
stations whenever you’re wi-fi connected – one
way of getting round pesky 3G data allowances.
It’s ad-supported, or you can upgrade to a £9.99
premium service.
SHOWER POWER RADIO
A waterproof radio that you can take into the
shower so that you don’t miss a single moment
of Humphrys & Naughtie is one thing, a radio
that’s actually powered by the shower is quite
another. The new H20 radio, launched his week
by Brit alternative energy specialist Tango
Group, uses a micro-turbine which generates
power from the flow of water through your
shower. It also memorises your last-tuned radio
station and volume setting. Simple, clever and
energy-free – we like. www.tangogroup.net
OUT OF OFFICE
TIMOTHY BARBER
PLAYBOY CLUB LONDON:
OPEN FOR NEW MEMBERS
There seems to be a rule with casinos in
London that they must either be lowest-
common-denominator hellholes or so
smart and snooty you can barely raise a
smile without being stared down. Well,
that should all change with the soon-to-
open Playboy Club, a “retro chic” affair if
Gadgets for lovers of...
RETRO CHIC
Timothy Barber sources the cutting edge gadgets that
find design inspiration in the classic looks of the past
LEICA M9
German camera company Leica has set the whole
aesthetic of its top range, M-series cameras
around the sturdy look of old-fashioned snappers.
Don’t let the dated look fool you: this is a spectac-
ular piece of photographic kit, and a true luxury
item, as its price suggests. £4,550,
www.uk.leica-camera.co.uk
FUJIFILM
FINEPIX-X100
Due in shops at the end
of this month, this digital
compact may sport a
hefty price tag, but it has
all the beautiful, golden
age chic of a driving trip
across Europe in a 1960s
Aston Martin. £999,
www.finepix-x100.com
FATMAN F452 iTUBE
It’s a super-high-quality valve amp (and can
come with a “FatDock” add-on for your iPod),
but with those four gleaming glass valves on
show its styling is pure Doctor Who (John
Pertwee era). £1,560 www.amazon.co.uk
ever there was one – and membership is
now open. The original, of course, was a
stalwart of the Sixties Mayfair scene,
hosting film stars, sporting greats and
high society. While there may be some
who question the return of Bunny Girls,
we reckon it’ll be right up the City’s
street. There will be high-limit gaming, a
members lounge, fine dining and cock-
HAMILTON
PULSOMATIC
WATCH
Hamilton has rebirthed its 1970s
classic, the Pulsar – the first digital
watch – with this stunner. With a
look derived from the older watch,
it actually has a fully mechanical
movement, making it even more
old-fashioned than the original.
£1,075, www.jurawatches.co.uk
ROBERTS REVIVAL DAB
Short of being made of Bakelight and blaring
out crackly Listen With Mother episodes, the
leather-bound radios produced by DAB spe-
cialist Roberts are the essence of vintage style.
£150, www.robertsradio.co.uk
COMMODORE 64X
If you grew up in the 1980s and didn’t have a ZX
Spectrum, you probably had this. Or rather, something
that looked exactly like this. Commodore has rebirthed its
iconic old computer as a fully-functioning PC with Atom
processor, 2GB or RAM, a Blu-ray drive and all the con-
nections and ports you need. Announced at the end of
last year, there’s still no word on price or shipping date,
but we’re excited. Commodoreusa.net
tails mixed by celebrated mixologist
Salvatore Calabresi, all on a strictly mem-
bership-only basis and in suitably plush
Mayfair surroundings.
To apply for a slice of the Playboy-style high-life
and become a member, you can make an expres-
sion of interest at www.playboyclublondon.com
or in person at LCI Offices, 10 Brick St, Mayfair.
23
NICK
BOOTH
TECH TALK
Gizmos that
can make the
commute a
bit more fun
houting into your mobile on the train
S during the morning commute may be
frowned upon, but there’s nothing to
say you can’t watch telly.
AverMedia.com’s Hybrid Volar dongle will
turn your laptop into a digital TV recorder, so
you can watch 50 digital Freeview channels.
Or listen to the cricket commentary on the
radio.
The pictures are better on radio, if you use
your imagination.You can even record stuff
and edit your own highlights, but you need to
have a good wi-fi connection.
On the other hand, the Tizi.tv gadget for
iPhones and iPads works pretty much any-
where. I managed to get this mobile TV
hotspot working on an iPhone in five minutes
(got some filthy looks on the train, mind).
The Tizi is effectively a pocket set top box
for your iPhone. That might sound strange –
it looks like a small pocket radio, complete
with extendable antenna – but the pictures
and sound are great.
Better still, it can deliver these over wi-fi
too, saving you on your 3G connection, and
giving you nifty options for watching TV any-
where around your house as well as on the
move.
For the time being, turning a mobile into a
digital TV does require you to be an Apple
user. If, on the other hand, you just want to
take your revenge on uppity train carriage
shushers, mobile technology offers a gadget
that will provide a bit of devious fun.
Generally people think train carriages
should be like libraries, with the silence only
broken by announcements over the tannoy.
Which is every ten seconds on SouthWest
trains.
With Logitech’s new wireless speakers and
your own pre-recorded sound files, you can
relay an endless stream of spoof tannoy mes-
sages from the comfort of your seat, if you
secrete the Z515 gizmo somewhere around
the carriage.
Of course, that’s not exactly the purpose
this neat speakers pod is designed for –
ostensibly, it’ll link up with your iPad, iPhone
or laptop, at a distance of up to 50 feet, and
give you stereo sound in a portable package
wherever you want to take it. But bringing a
bit of colour to the drab morning commute is
surely as good a use to put it to as any.
Nick Booth edits www.mobileb2b.co.uk
 24 Lifestyle | TV& Games CITYA.M. 10 MARCH 2011

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm EastEnders: BBC News
8pm CHOICE Bang Goes the
Winter Weather Special
9pm Comic Relief: Famous, Rich
and in the Slums 10pm BBC News
10.25pm Regional News 10.35pm
Question Time 11.35pm This Week:
Skiing; Weatherview 12.25am Sign
Zone: Smoking and the Bandits:
Panorama 12.55am Sign Zone:
Countryfile 1.55am Sign Zone:
Antiques Roadshow 2.55am Sign
Zone: The Foods That Make Billions
3.55am Sign Zone: Rip Off Britain
4.25am-6am BBC News
6pm Eggheads
6.30pm Royal Upstairs
Downstairs
7pm The Culture Show:
Ben Lewis explores the
history of taxidermy.
8pm A Farmer’s Life for Me:
The four remaining couples are
challenged to work together.
9pm The British at Work
10pm Mock the Week
10.30pm Newsnight: Weather
11.20pm ICC Cricket
World Cup Highlights
12.20am The Culture Show
1.20am BBC News 4am-6am
BBC Learning Zone
6pm London Tonight 6pm The Simpsons 5.45pm Live UEFA Europa
6.30pm ITV News 6.30pm Hollyoaks League Football: SC Braga v
7pm Emmerdale 7pm Channel 4 News Liverpool (Kick-off 6.00pm).
7.30pm Make Your Own 7.55pm 4thought.tv 8.05pm Police Interceptors:
School: Tonight 8pm Relocation, Relocation A counsellor tries to avert a
8pm Emmerdale 9pm Love Thy Neighbour potential suicide on the M25.
8.30pm Coronation Street 10pm 10 O’Clock Live 9pm FILM The Longest Yard:
9pm CHOICE Monroe 11.05pm Friday Night Dinner Comedy remake, starring
11.35pm CHOICE
10pm ITV News at Ten Adam Sandler. 2005.
The Ricky Gervais Show BANG GOES THE WINTER
10.30pm London News 11.10pm Sex Lessons: A light-
10.35pm Benidorm
12.05am Music on 4: CTRL MX
hearted look at sex education. WEATHER SPECIAL BBC1, 8PM
12.40am On Track 12.55am On Dallas Campbell, Liz Bonnin and Jem
11.35pm Send in the Dogs 11.50pm Cops in Crisis
Track 1.10am The Crush 2am The Stansfield build a weather chamber to
12.30am The Zone; ITV News People’s Supermarket 2.55am 12.10am SuperCasino re-create wintry conditions by making
Headlines 2.30am The Jeremy Kyle Dispatches: Selling Off Britain 4am Your Sport 4.10am Brian their own clouds, rain and snow
Show 3.25am Make Your Own 3.45am Without a Trace 4.30am Sewell’s Grand Tour 4.50am
School: Tonight 3.50am-5.30am Reaper 5.20am-6.05am Brian Sewell’s Grand Tour
ITV Nightscreen Countdown 5.35am-6am House Doctor

SKY SPORTS 1 BRITISH EUROSPORT BBC THREE HISTORY DISCOVERY HOME &
SATELLITE & CABLE

7pm Live Premier League Darts
10.30pm Ringside 11.30pm The
Rugby Club 12.30am Sky
Sports Classics 12.45am ICC
Cricket World Cup 2.45am
Ringside 3.45am-6am
Live ICC Cricket World Cup
SKY SPORTS 2
7pm Live World Golf
Championship: The Cadillac
Championship. 11pm Time of
Our Lives 12am Racemax 1am
NFL: Total Access 2am-6am
World Golf Championship
SKY SPORTS 3
7pm The Rugby Club: Rugby
union magazine. 8pm ICC
Cricket World Cup 10pm Live
Poker 12am Premier League
Darts 3.30am Championship
Rugby League 5.30am-6am
Super League’s Supermen
7pm Cycling 8pm Strongest
Man 9.30pm Boxing
10.40pm-12.35am Cycling
ESPN
6pm Live UEFA Europa League
Football 8pm Live UEFA Europa
League Football 10.30pm Goal!
11pm UFC Unleashed 12am Live
NBA Basketball 2.30am NBA
Action 3am ESPN Press Pass
3.30am Planet Speed
4am-6am AMA Supercross
SKY LIVING
7pm Ghost Whisperer: A lawyer
claims a ghost is stalking him.
8pm Criminal Minds 9pm
FILM Ghost 1990. 11.25pm
Bedlam 12.25am Criminal
Minds 1.25am 35mm
1.40am CSI: Crime Scene
Investigation 3.30am Charmed
5.10am-6am Maury
7pm Top Gear 8pm Junior
Doctors: Your Life in Their
Hands 9pm Working Girls
10pm EastEnders 10.30pm
Lunch Monkeys 11pm Family
Guy 11.45pm Working Girls
12.45am How to Live with
Women 1.45am Lunch Monkeys
2.15am Junior Doctors 3.15am
Music, Money and Hip-Hop
Honeys 4.10am-5.10am How to
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E4
7pm Hollyoaks 7.30pm Friends
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COFFEE BREAK
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QUICK CROSSWORD
   

SUDOKU KAKURO
14 30 25 3 20 40 
22 19
13 4 8 
45
Place the numbers from 1 to 9 in each empty cell so that each 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 16 6
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 10 14  
above or to the left of it. 12 38 23 7
You can only use the digits 1-9 6 17 5      
   and you must not use the
13 23 8
45  
same digit twice in a block.
   The same digit may occur 15 16 11 
7 11
    more than once in a row or
column, but it must be in a
9
15 13
5
24 15

21 35
 separate block.
15 
45
 9 10


    ACROSS DOWN
3 Be composed of (7) 1 Severe blow (6)
  
   WORDWHEEL C L
6 Cause to be
embarrassed (5)
2 Large bottle of
Champagne (6)
Using only the letters in the Wordwheel, you have 7 Small guitar with 3 Stir vigorously (5)
  ten minutes to find as many words as possible,
I A four strings (7)
4 Military greeting (6)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters L 8 Relating to the moon (5)
5 Containing salt (6)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
N R 9 Following (4)
10 Geological period
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
E G
11 Mountain lion (4) of time (3)
14 Always (4) 12 State of commotion
QUICK CROSSWORD 8 1 2 1 4 4 9 and noise (6)
M E R C E R B S
9 3 8 4 2 7 5 1 6 SUDOKU         
17 Marine crustacean (4)
13 Tree with sharp
2 6 1 9 8 5 7          19 Stratum (5)
O I C B L O O M
9 5 7 8 6 1 2 3 thorns (6)
S O O I L S O         
S A T I N I N N O 8 6 9 3 5 3 8
        
20 Fissure in the 15 Ocean trip (6)
X O N I T 4 7 2 1 6 earth’s crust (7)
        
B E T
R E
M
I
A D
A
A S H
E
2 4
7 8 9
9 1 4 3
4 6 9 8
1
3
WORDWHEEL          21 Earnings (5)
16 Most uncommon (6)
I A R C L A T C H         
D P A L L O A
1 2 3 5 4 5 1 The nine-letter word was 18 Moved by the wind (5)
G H O U L E U N 3 1 7 9 4 2 8 5 6          22 Accuse of a wrong (7)
E T H Y B R I D 4 9 7 3 1 2 3
SUNBATHER         
 Sport
2012 chiefs
slam BOA as
row ignites
▲
OLYMPICS
BY FRANK DALLERES
LONDON 2012 organisers LOCOG last
night hit back at the British Olympic
Association (BOA) in an increasingly
bitter row over cash, calling its com-
plaints “sad”.
The hard-up BOA, chaired by Lord
Moynihan, believes it was short-
changed when it sold marketing
rights to next year’s Games to LOCOG
for £28m in 2004.
Chief executive Andy Hunt, who
did not join the BOA until four years
later, wants LOCOG to compensate for
that by providing a large cut of the
profits from the event.
With the two main bodies responsi-
ble for the London Games at logger-
heads, the BOA has taken the
extraordinary step of asking the
International Olympic Committee to
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mediate. But a LOCOG spokesperson
said: “The vision for London 2012, cre-
ated by the BOA, Government and the
Mayor of London and set out in the
bid book, is for one festival of sport,
with an integrated Olympic and
Paralympic Games, underpinned by a
single budget. It is sad that this vision
is now disputed by the new leadership
of the BOA. We are grateful that the
IOC is helping to resolve the issue.”
The BOA, criticised for failing to
control its budget, played down fears
it would struggle to fund Team GB at
next year’s competition.
A statement read: “Our principal
responsibility is to safeguard future
opportunities for [UK] Olympic ath-
letes and sport. We are engaged in a
process with a view to ensuring that
surplus resulting from the London
2012 Olympic Games is available to be
used for precisely those purposes.”
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email sport@cityam.com
 26 Sport CITYA.M. 10 MARCH 2011

WHITE HOT LANE

l Spurs edge out mighty Milan
Robinson, the former England coach Pic: PA
l Harry hails amazing achievement

Robinson
out to spoil
grand slam
RBS
6 NATIONS
BY FRANK DALLERES
FORMER England boss Andy
Robinson is convinced he can lead
Scotland to their first win of this
year’s RBS 6 Nations against his old
team this weekend.
Robinson has rung the changes for
Sunday’s clash at Twickenham, recall-
ing backs Simon Danielli, Joe Ansbro
and Rory Lawson and flanker Nathan
Hines.
And the Englishman insists the
Scots can spring a huge surprise by
ending the home side’s hopes of a
grand slam in the penultimate round mier club competition, made it night for the players, a great night for it was the turn of the defence to take
of fixtures, despite historically having
won just four times in 44 trips to
TOTTENHAM 0 through to the last eight following a
superb rearguard action, backed by a
the fans and for everyone. I’m
delighted. It’s amazing what the play-
the plaudits.
Brazilian Sandro was magnificent
London. raucous White Hart Lane crowd, to ers have done. We worked our socks in shielding his centre-halves Michael
“The record books show what a spe-
cial achievement it would be for the
AC MILAN 0 deny seven-times winners AC Milan.
Redknapp had intended for his
off and we stayed with them.
“I enjoyed the occasion, but no, I
Dawson and William Gallas, who
themselves were excellent in nullify-
Scotland team to win on Sunday,” side to go for the jugular and build couldn’t say I enjoyed the 90 minutes. ing the threat of Zlatan Ibrahimovic,
said Robinson. Tottenham win 1-0 on aggregate on the first leg advantage they You’re looking at that clock and you Robinho and Alexandre Pato.
“That is our intention and we firm- attained through Peter Crouch’s goal want it to go and that 90 minutes to Dawson added: “Credit to the lads.
▲

ly believe that if we can deliver a sus-
tained, intelligent and ruthless
performance then we can achieve our
first win of this season’s champi-
onship.
“England have played some good
rugby in this championship but
Sunday is about our performance.”
England manager Martin Johnson
is set to name his team tomorrow.
FOOTBALL
BY JAMES GOLDMAN
PROUD Tottenham manager Harry
Redknapp hailed his side’s progres-
sion to the quarter-finals of the
Champions League as an amazing
achievement.
The north Londoners, enjoying
their debut season in Europe’s pre-
in the San Siro.
But they were met here by an AC
Milan side intent on restoring their
battered reputation following the
schooling they received on their own
turf, and in the end Redknapp was
just delighted to get the job done in a
manner not strictly in keeping with
his side’s previous performances in
this competition. He said: “It’s a great
be up.
“It’s a great achievement for this
club being in the last eight of the
Champions League, it’s amazing
what the players have done and if
people can’t appreciate and enjoy
this tonight then they shouldn’t be
involved in football.”
While Tottenham’s attack caught
the eye in the group stages, last night
It was certainly backs to the wall for
90 minutes but we stood strong.
What a night out there. The atmos-
phere was unbelievable.
“Why can’t we go all the way? We
are in the hat and beat a top Milan
side and have shown we can mix it
with the best. Hopefully it will keep
going and there will be many more
fantastic nights like tonight.”
CITYA.M. 10 MARCH 2011 Sport 27

KEY MOMENTS | WHEN THE SPURS WENT MARCHING IN

Barca add insult to Arsenal’s injury

▲
FOOTBALL
BY FRANK DALLERES
BARCELONA star Javier Mascherano
has accused Arsenal of sour grapes
for blaming their Champions
League exit on the controversial
sending off of Robin van Persie.
Gunners manager Arsene Wenger
and midfielder Samir Nasri are fac-
ing possible European bans after
being charged with improper con-
duct for remarks made to referee
25 mins: Milan dominated the early exchanges and were fractions away from taking the lead just Massimo Busacca after Tuesday’s
past the midway point in the first-half. Tottenham’s kamikaze goalkeeper Heurelho Gomes need- defeat.
lessly rushed from his line and was beaten to the ball by the spritely Alexandre Pato. The Brazil Both were furious at Busacca’s
striker took the ball round the despairing Gomes and cut the ball back for Robinho, whose decision to show Van Persie a second
scuffed shot his a prone Benoit Assou-Ekotto and looped towards goal, only for William Gallas to
save the day and clear the ball from directly underneath his own crossbar.
yellow card for shooting one second was the key. We played Barca’s way
after the whistle had been blown for and that’s why we advanced.”
offside, but Mascherano has little Arsenal have until Monday to
sympathy. respond to the charges against
“Barca always wins thanks to Wenger and Nasri, whose cases
the referee, never because of its are due to be heard next week.
play, not for having taken Wenger called Van Persie’s dis-
19 shots on goal, not for missal “embarrassing” while the
having won 74 per cent striker said he could not hear
of the possession or the whistle over the crowd –
completing 900 an explanation team-mate
passes,” he said Jack Wilshere endorsed.
sarcastically. “Even I couldn’t hear the
“Let’s not be whistle,” he said. “We all
hypocrites. We know it was a bad decision
didn’t let them but we have to deal with
breathe and that that and move on now.”

WANT
A FREE
62 mins: Harry Redknapp promised Mathieu Flamini would receive and extra special welcome
from the White Hart Lane faithful due to his two-footed assault on Vedran Corluka in the first leg,
not to mention his Arsenal ties. The France midfielder was booed at every possible opportunity
and his frustration boiled over just past the hour mark. With Assou-Ekotto going nowhere close
to the corner flag and with his back to goal, Flamini launched into another senseless tackle and
was booked. He riled Spurs fans still further late on when he clattered into Gareth Bale.

AD?
WE’LL
DO IT
FOR
NOTHING
76 mins: Despite their domination in terms of possession and their territorial advantage, Milan
struggled to create an opportunity of note in the second period until 14 minutes from the end.
Alexander Merkel played the ball into Robinho, who showed admirable strength to hold off the On March 18th, help RedRoute create
attentions of Michael Dawson and shovel the ball into the path of Pato. The striker cut in with
his first touch and smashed in a low shot from the edge of the area with his second. The ball more ads for more clients in one day
just missed the near post and rippled the side netting. It was as close as Milan would come. than any other agency in history – and
help create a poverty-free world.

QPR face points penalty Just send a brief for your product, brand, service -
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To get your creative brief visit

▲

FOOTBALL issues from dragging on beyond the

BY JAMES GOLDMAN
QUEENS PARK RANGERS top-flight
promotion bid was thrown into tur-
moil last night after they were
charged by the Football Association
with seven breaches of rules banning
third-party ownership in relation to
their midfielder Alejandro Faurlin.
If found guilty by a three-man inde-
pendent panel, the runaway
Championship leaders would be open
to a number of punishments includ-
ing a points deduction, a transfer
embargo or a heavy fine.
Sources close to the FA told City A.M.
that a points deduction would be the
least likely outcome. However the gov-
erning body is understood to be seek-
ing a quick conclusion to the matter
to prevent promotion and relegation
season’s end in case of a deduction.
www.redrouteagency.com
The Argentinian joined QPR from or see us at the top of
Institute FC in July 2009 for £3.5m,
but it is alleged that when he did so
Carnaby Street on March 18th
an unnamed third-party retained a
stake in his economic rights.
The FA stress that this case is with-
out precedent, having only brought
in laws to deal with third-party own-
ership in 2009 following the contro-
versy caused by Carlos Tevez’s move to
West Ham and the role he played in
keeping them in the Premier League
at Sheffield United’s expense in 2007.
West Ham were hit with a £5.5m
fine rather than a points deduction
and Tevez was permitted to continue Supported by
playing. The Hammers later settled
out of court with United for around
£18m after the Yorkshire side sued
them, claiming £45m.
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