BANKING & INSURANCERoyal Bank chairman may resign as European insurers eye assetsThe board of the Royal Bank of Scotland met yesterday in Edinburgh to organise the largest plea to shareholders by any UK company.
(The Herald) Speculation is mounting that RBS chairman, Sir Tom McKillop is to stand down in order to appease key shareholders. It is thought that a resignation from McKillop and a promise to seek a new chairman with experience in international banking may allow chief executive Sir Fred Goodwin a reprieve. The rights issue is expected to be confirmed on Wednesday before the bank's annual meeting and could be around £10billion, which was the amount RBS paid last year for ABN Amro. A major shareholder was quoted as saying Goodwin had "sailed too close to the wind on capital ... we have been telling him for the last three years that he needs capital". Another said: "Halfway through the ABN bid, some people were saying walk away. It may be with the benefit of hindsight, but now you can see Royal was gearing up going into a downturn." Over the weekend, it has been suggested numerous large European insurers have been making enquiries about purchasing Direct Line, considered one of RBS's prized assets and employers of 1100 staff at Glasgow call centres. One banker said yesterday: "If RBS sell all or some of the insurance division, it tells you they are in a very difficult situation.
(The Scotsman)"General insurance is the best type of asset a bank could have right now. They are quite profitable and don't require a lot of capital. And having adequate capital is a prime concern for RBS, in particular. General insurance, households, motors etc, is not sexy like corporate banking, but RBS has built itself a good, solid position in the UK, with a 20 per cent market share. It will be strange if they give it up." Alex Potter, a banking analyst with broker Collins Stewart, said: "I think it is a good insurance business and a great shame if RBS had to sell it. It would be a case of selling a good business at a weak point in the cycle for sellers."
Read all today's banking news from scotsman.comENERGY & UTILITIESBristow investment underlines commitment to oil and gas sector An investment of over £70million has been announced by Bristow Helicopters to aid the North Sea oil and gas industry.
(Aberdeen Press & Journal) Bristow's investment provides six new helicopters, which will serve offshore installations near Shetland reinforcing the company's commitment to the industry. Bristow's European business operations head of commercial Alan Grant said: "We will continue to invest as part of our drive to enhance the safety of thousands of passengers we transport offshore each year in support of the oil and gas industry."
Replacing the Tiger helicopters, the six new Sikorsky S-92s will allow for increased passenger capacity, improved safety and will cover the Scatsta area near Shetland making 75 trips a week. This arrival marks another milestone for Bristow who have carried more than 50million passengers in the past 40 years.
Chaos looming as Grangemouth strike threatens the nationSmall businesses could be forced to close down as a result of a planned strike at the only crude oil refinery in Scotland.
(Aberdeen Press & Journal) The row over pensions at the Grangemouth refinery could cause nationwide problems for businesses and consumers alike. As many as 1,200 workers are preparing to go on strike, at the Ineos-owned refinery, for two-days starting on the April 27. The Unite union have been at odds with conciliation service Acas, with Unite refusing to entering into discussions until the company's plans were withdrawn. Aberdeen and Grampian Chamber of Commerce chief executive Geoff Runcie said: "Any disruption to the supply of fuel is a cause for concern, particularly in the north-east where there is a disproportionate reliance on transportation and fuel." "It is going to hit us very hard said Andy Willox of the Federation of Small Businesses Scotland. "There will be job losses. There is absolutely no doubt about it." First Minister Alex Salmond said: "Both sides should stop debating with each other over the airwaves, return to the negotiating table and stay there until they resolve their differences."
Hydrafit sold to US private equity firmHydrafit, the oil services company, has been bought by a private equity firm from the US in a deal reported to be worth in the region of £20million.
(The Scotsman) The Aberdeen-based firm, which deals in the installation of subsea devices used in oil and gas production has been purchased by Intervale Capital and is the private equity firm's first acquisition. Hydrafit, who currently employ over 50 staff, will now be owned by AESI Holdings, who were acquired by Intervale in an institutional buy-out. Erich Horsley, principal of Intervale Capital, said: "These acquisitions represent a significant strategic step for us as we broaden our service capabilities. The two deals are highly complementary and we believe both businesses have excellent growth prospects." Hydrafit co-founder Steve King added: "Our drive remains the same now as when we founded the business and we are excited by the prospect of expanding our horizons and delivering even more comprehensive solutions to our customers."
Read all today's energy and utilities news from scotsman.comINDUSTRYEdgen Murray Europe enjoy record yearEdgen Murray Europe has posted record profits and turnover, in a year where the metals business expanded its operations around the world.
(The Scotsman) Formerly Murray International Metals, the company announced a pre-tax profit of £24million in 2007, which is 17.4% higher than the year before. Turnover increased 13.6% coming in at £179.8million. The Edinburgh-headquartered firm employs around 130 staff and is a global distributor for the energy infrastructure industry supplying speciality steel pipes, plates, fittings, long products, and valves. Ken Cockburn, the company's managing director, said: "Edgen Murray Europe has significantly expanded their product offering and geographic reach since being acquired from the Murray group, in December 2005, by management and Jefferies Capital Partners." He added: "Our results over the years have been very impressive and are a tribute to the staff."
Read all today's industry news from scotsman.comTECHNOLOGYDentsply reject involvement in Idmos crashDistribution company Dentsply has denied that it responsible for putting Idmos into administration.
(The Scotsman) Dentsply has stated that they were prepared to arrange a change of terms with the dental technology company, but they did not receive a firm proposal. Dundee-based Idmos was placed into administration last week leading executive chairman John Pool to announce that unrealistic claims from distributors had led to vital delays in Idmos getting products to market. Dentsply responded with a statement from Gerard Campbell, the UK general manager, which said: "This arrangement (with Idmos] included investments made by Dentsply to support the development of the technology … for applications in the dental field. The agreement also provided for product expectations and development milestones which, unfortunately were not met by Idmos. As a result, there was never a product presented to Dentsply which was commercialisable under the distribution agreement."
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