WHAT THE OTHER PAPERS SAY THIS MORNING
FINANCIAL TIMES
BANKRUPTCIES SET TO RISE
The number of corporate bankruptcies is set to surge by 35 per cent this year, turning the world economy into a “burial ground” for businesses, according to a study by Euler Hermes, the credit insurer. In a study published today the Paris-based unit of Allianz, says the rate of corporate collapses will reach “historic” highs in 2009.
CLEAR CHANNEL LENDERS THREATEN REFINANCING PLAN
Some of the largest lenders to the private equity groups that led the $23.8bn buy-out of Clear Channel Communications intend to turn down a proposed debt exchange, hoping to drive the radio and outdoor advertising company towards default. The company, taken private in a leveraged deal, has proposed a swap of some parent company debt for debt in Clear Channel Outdoor Holdings, its listed billboard division, regarded as a crown jewel despite the current steep advertising downturn.
INVESTOR RISK APPETITE RETURNS
Further signs of investors’ renewed appetite for risk came with Europe’s first high-yield private equity-backed bond since the credit crisis began. The deal was just the sixth European high-yield offering this year and follows on from bumper issues from Virgin Media and Pernod Ricard last week.
MEDIA EXECS INTERNET PIRACY PLEA
Media chief executives have urged the government to take a tough approach in fighting internet piracy even as it puts the final touches to its Digital Britain white paper. The group, including the chief executives of football’s Premier League, want Lord Carter, the communications minister, to establish a “rights authority” to “ensure effective control of piracy.”
THE TIMES
DAIRY FARMER OF BRITAIN CALLS IN RECEIVERS
Dairy co-operative has gone into receivership with 2,200 jobs at risk after losing key contract with the Co-op supermarket. Dairy Farmers of Britain, the milk cooperative, has gone into receivership, putting 2,200 jobs at risk, after losing a contract with Co-operative stores.
MADOFF SONS SPEAK OF ‘BIBLICAL’ BETRAYAL
One of Bernard Madoff’s sons is obsessed with his father’s crime and the other is still in shock over the $65bn Ponzi scheme, according to a new exposé on the convicted fraudster. Andrew, 43, described his father’s crime as “a father-son betrayal of bibical proportions”. The sons’ spokesman confirmed that neither had seen or spoken to their father since he confessed his Ponzi scheme.
The Daily Telegraph
SALE MAY BE NEXT CHAPTER AT BORDERS
Borders, the UK book retailer, has appointed advisers to bring in new funding in a move that observers say could lead to a sale of the chain. The retailer, which is owned by Luke Johnson’s Risk Capital Partners, has appointed Clearwater Corporate Finance, a boutique finance house, to “seek out funding opportunities.”
TRIUMPH AS MOTORCYCLE GROUP SALES RISE
Triumph Motorcycles Group, the historic motorbike marque, enjoyed a 19 per cent rise in sales last year but has warned it is “cautious” for the future as the economic downturn hurts consumers. Triumph, which has enjoyed a resurgence since John Bloor bought the company in the 1980s, saw turnover grow 29 per cent to £284m in the year to June 30, 2008.
WALL STREET JOURNAL
DOJ PROBES HIRING AT TECH FIRMS
The Department of Justice is investigating whether a number of large US companies violated antitrust laws by establishing agreements not to recruit each other’s employees, according to people briefed on the investigation. Members of the department have sought information from companies in the technology and biotechnology sectors, including Google, Apple, Yahoo and Microsoft.
MERCK PUTS ANIMAL-HEALTH ASSETS ON BLOCK
US pharmaceutical company Merck & Co. has started contacting potential buyers for parts of its animal-health business as it determines what to sell after its planned $41bn acquisition of Schering-Plough, according to people familiar with the matter. It is believed a sell-off of two assets could raise between $11bn-$13bn (£6.7bn-7.9bn).