The starting whistle has been blown in the race to buy Manchester United — a deal that will require bidders to not only win over the club’s current owners, but also its fanbase. While that deal rumbles on, a smaller deal hits a stumbling block: unusually, soap-maker Lush refused to record the transfer of shares in Silverwood Brands’ purchase of a 20% stake. Meanwhile, under short-seller pressure, Darktrace has taken further steps to assess its financial health.
(Bloomberg) — The starting whistle has been blown in the race to buy Manchester United — a deal that will require bidders to not only win over the club’s current owners, but also its fanbase. While that deal rumbles on, a smaller deal hits a stumbling block: unusually, soap-maker Lush refused to record the transfer of shares in Silverwood Brands’ purchase of a 20% stake. Meanwhile, under short-seller pressure, Darktrace has taken further steps to assess its financial health.
Here’s the key business news from London this morning:
In The City
Silverwood Brands Plc: The investment company said soap-maker Lush declined to record the transfer of shares in its acquisition of a 19.8% stake in the company.
- Silverwood said letters failed to provide any reasons for the refusal and its asked its lawyers to seek further clarification
Darktrace Plc: The cyber security company appointed Ernst & Young for a independent third-party review of its key financial processes and controls, following a report by a short seller calling into question the company’s book-keeping.
- Darktrace said it was “confident” that its independently audited financial statements “fairly represent” its financial position and results
- Earlier this month, the company said it was unable to validate a small number of partner contracts in the run-up to its 2021 initial public offering
Morrisons: The supermarket chain will cut prices across many of its own-brand products to help consumers squeezed by the cost of living crisis. The move, which Morrisons said would cost £25 million, will reduce prices by an average of 19% on items including potatoes, coffee and rice.
- Premium grocer Waitrose said last week it would cut prices by a record amount as it tries to win back customers who have chosen cheaper rivals including discounters Aldi and Lidl
Standard Chartered Plc: The London-based bank plans to hire 300 to 500 staff in Hong Kong this year, in anticipation of an increase in wealth management and lending as the city reopened its borders to mainland China.
- Rival lender HSBC Holdings Plc’s Chairman Mark Tucker last month said Hong Kong and the Greater Bay area are likely to be “immediate beneficiaries” of China’s reopening
In Westminster
Rishi Sunak is gearing up for the biggest political test of his premiership as he prepares to unveil a deal with the European Union that risks a stand-off with Northern Ireland unionists and members of his own party. Despite newspaper reports of a Monday announcement, it’s now likely to be pushed back by at least a day as Sunak continues to engage with the EU and the DUP, a senior government official told Bloomberg.
Ambulance workers will strike again today as junior doctors announce their first walkouts in March across the NHS.
British businesses have headed off the threat of a defaults “Armageddon” as the possible end of painfully high interest rates and the energy crisis comes into view, according to the head of the government’s development bank.
In Case You Missed It
Property prices are surging across north London as young professionals return to jobs in the capital after the pandemic, a survey showed.
Here’s a closer look at Sheikh Jassim Bin Hamad J.J. Al Thani. The son of a former Qatar prime minister didn’t even have a Wikipedia entry until late Friday night, around an hour after he issued a press release announcing his multi-billion-pound bid for Manchester United. Now, Sheikh Jassim has become the face of what some see as the leading bid for the renowned football club, and has hired Bank of America Corp. as one of the advisers.
Looking Ahead
Miner Antofagasta Plc, medical device-maker Smith & Nephew Plc and lender HSBC are among the companies due to update the market tomorrow.
A stronger pound may have been a fillip to HSBC, which reports in US dollar, according to Bloomberg Intelligence’s Tomasz Noetzel and Jonathan Tyce. Analysts on HSBC’s earnings call will likely ask about plans for more asset disposals as the bank prunes back its global footprint and focuses on building in Asia. HSBC last year announced the sale of its Canadian unit to Royal Bank of Canada for $10 billion and is reviewing its New Zealand retail banking operations, Bloomberg reported in November.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
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