Economic recovery record profits from US firms

AMERICAN companies are set to post record profits this year as the US economy finally begins to recover from the dotcom collapse. Company profits from current production grew at an annualised quarterly rate of 43.2 per cent in the second quarter, 14 times faster than the 3.1 per cent annualised growth registered by the economy as a whole, official government figures reveal.

Google, the world’s most popular internet search engine, has signalled the start of the next web boom by saying it is considering plans for a US$10 billion (6.4 billion) public listing. Analysts’ estimates of Google’s current annual income range from $600m-$800m (380m-506m) from advertising and licensing fees.

Permira, the UK private equity group, has emerged as one of a number of financial and strategic buyers in talks with Mobilcom about taking a stake in the German mobile operator.

Socit Gnrale, The French bank is planning to open 20 to 30 retail branches in Russia over the next three years.

ENTERPRISE minister Jim Wallace will set out his strategic vision this week as new figures reveal the extent of the crisis in Scotland’s manufacturing sector. The figures show that exports of the key electronics industry have fallen by half in the last two years.

Growing levels of business at Kwik-Fit Insurance Services has encouraged the firm to expand into the commercial vehicle sector. Managing director Martin Oliver said that the broker was confident of replicating its 1 per cent share of the private motor market, which would be equal to about 20,000 vehicles.

Rebel investors campaigning for the break-up of Caledonia Investments will send shareholders a proposal demanding the liquidation of the company within the next week.

THE boss of the Hollinger newspaper empire, Lord Black, has revealed he will sell a minority stake in his holding company next month. Black said he had talked to a number of private equity houses, including Providence Equity Parters and Bain Capital, about buying a shareholding.

Directors of Safeway, the supermarket group at the centre of a 2.9bn-plus takeover battle, are drawing up contingency plans in case William Morrison, its smaller rival, ends up being the only company allowed to bid for it.

The two founder directors of the internet phenomenon Friends Reunited shared pay and benefits of 2.2m in 2002, plus dividend payments worth 1.48m.

The boss of Harry Ramsden has quit the chip shop chain after the break-up of talks over a management buyout from its owner Compass Group.

Procter & Gamble has been sounding out potential buyers for its Pringles snack business.

EMI, the leading UK music group, is preparing to launch a cash and shares takeover bid for Warner Music, AOL Time Warner’s record business, as early as this week. A combination of EMI and Warner Music, which is thought to be worth more than 600m, would create the world’s biggest music group.

A consortium led by a member of the Cadbury chocolate dynasty has made a 200m bid for Dolphin Square, the exclusive but run-down Westminster housing complex that is home to 3,000 people including peers, diplomats, admirals, MPs and civil servants.

Debenhams, the department store chain at the centre of a two-way, 1.6bn bid battle, will reassure shareholders this week that trading has remained "steady" despite the heatwave. Rival department stores have admitted that shoppers deserted their stores during the recent hot weather. Sales at John Lewis slumped by 12.7 per cent compared with last year in the week to 9 August.

THE biggest ever government IT outsourcing project was plunged into chaos as Lockheed Martin dramatically pulled out of the race to supply up to 10bn of computer systems to the National Health Service. Lockheed’s 11th hour move could be followed this week by the withdrawal of other would-be contractors, including Accenture and IBM, according to a source close to the bidding process.

Collins Stewart secretly taped conversations which it claims will prove that self-proclaimed whistle blower James Middleweek tried to blackmail the firm. The tape allegedly records how, in exchange for a 2.4m payoff, the sacked analyst was prepared to bury the allegations of insider dealing and share-ramping that has since rocked Collins Stewart.

Unilever is to "reposition" Slimfast, its troubled diet foods business, emphasising its healthy status in an attempt to fight back against the success of the Atkins diet.

The World Bank and aid agencies are accused of causing famine and ignoring corruption and incompetence.

A former ITV chief executive has warned that a takeover of ITV companies Granada and Carlton by venture capitalists would be "a disaster".

CABLE & Wireless’s retreat from the US could see its entire 1.6bn cash reserve wiped out, plunging the company into a fresh crisis. Potential bidders reached this conclusion after reading C&W’s prospectus on the businesses, distributed earlier this month.

Alisher Usmanov, the Russian metals entrepreneur, has amassed a US$100m (63m) war chest in order to double his stake in the steel firm Corus.

SANDERSON, the upmarket wallpaper maker that went into receivership this month, is believed to have been taken over by Crowson, best known for its luxury Monkwell fabric brand.

JACK McConnell has given a "crystal clear" pledge that he will not raise taxes to boost public spending in Scotland as long as he is First Minister.

A boom in workers eating lunch at their desks has helped Food Partners, the Kilmarnock-based sandwich maker, deliver another tasty trading performance with sales topping the 12m mark.