Press headlines and tips: Pendragon, Lloyds Banking Group, Aviva

Tips from the press

Welcome to our summary of the weekend's quality press tips, provided on Mondays by Weekend City Press Review.

PRESS TIPS:

The Times

■ Tempus: Martin Waller says the internet has revolutionised trading in second-hard cars, enabling major players such as Pendragon (Last IC rating: Buy, 10 May), Lookers (Last IC rating: Buy, 7 Mar), Inchcape (Last IC rating: Buy, 13 Mar) and Vertu Motors (Last IC rating: Buy, 20 Oct) to all claim to be increasing market share at the expense of small independents.

The Independent

■ No Pain, No Gain: Derek Pain would not be surprised if Lloyds Banking Group (Last IC rating: Hold, 24 Feb) followed Royal Bank of Scotland by consolidating its shares into more manageable numbers.

The Daily Mail

■ Investment Extra: Dan Hyde reveals brokers' views of financial companies under pressure from the 'Shareholder Spring'.

■ Barclays : Hold, says Charles Stanley (Last IC rating: Sell, 13 Feb).

■ Lloyds Banking Group : Buy, says Deutsche Bank.

■ Royal Bank of Scotland : Hold, says HB Markets (Last IC rating: Sell, 24 Feb).

■ Aviva : Buy, says Killik (Last IC rating: Buy, 10 May).

■ Standard Life : Buy, says Investec (Last IC rating: Buy, 30 Apr).

The Sunday Times

■ In the City: Danny Fortson thinks the Glencore (Last IC rating: Hold, 5 Mar) merger with Xstrata (Last IC rating: Bid situation, 8 Feb) is all over bar the shouting as the threatened shareholder revolt has collapsed, although the question now is whether investors will focus instead on the generous rewards that Xstrata CEO Mick Davis will receive when he heads up the combined entity (IC view on merger, 8 Feb).

■ SuperGroup 's (Last IC rating: Sell, 20 Apr) sliding share price could be a signal that it has gone 'ex-cool' - or else that it may be worth a speculative recovery punt.

The Sunday Telegraph

■ Questor: Garry White says buy Weir Group (Last IC rating: Buy, 3 May), £15.46, which remains a quality long-term investment irrespective of some short-term volatility.

■ Buy 3i Infrastructure (Last IC rating: Good value, 10 Nov), 124.5p, for the growth potential from its Indian investments.

The Mail on Sunday

■ Midas: Simon Watkins advises small investors not to panic over Royal Bank of Scotland 's plans to consolidate its shares, although the whole process may prove 'a bit of a waste of time, effort and money'.

■ Update: Take some profits at Experian (Last IC rating: Hold, 10 May), tipped in January 2007 at 589p and now 928.5p, but hold the rest for the longer term.

Business press headlines courtesy of Weekend City Press Review:

Banks' shares suffer as JP Morgan's $2bn loss raises heat over risk-taking

US regulators are said to be investigating the US$2bn trading losses revealed by JP Morgan Chase late on Thursday, which saw more than US$14bn wiped off its market value on Friday. The disclosure has increased pressure on regulators to widen the scope of the so-called Volcker rule currently being finalised which aims to curb proprietary trading by the banks. [Financial Times pp.1, 15]

London Whale's bosses under fire

The investigation into the US$2bn trading losses at JP Morgan Chase is focusing on senior executives responsible for its US$375bn investment fund, along with the London trader involved – Bruno Iksil - nicknamed the 'London Whale'. The executives subject to an internal review are Ina Drew, head of the bank's chief investment office, and her London-based deputy, Achilles Macris. [Sunday Times p.3.1]

3i lines up a new chief

3i chief investment officer Simon Borrows is expected to be named this week as successor to CEO Michael Queen, forced out in March by shareholder pressure. Borrows has emerged as favourite from a short-list of four. Meanwhile, 3i declined to comment on speculation that BlackRock was planning a bid. [Sunday Times p.3.1]

Thais in £2.5bn swoop on Birds Eye

Bangkok-based Charoen Pokphand Foods, part of conglomerate Charoen Pokphand, is planning a £2.5bn move for the Birds Eye frozen foods business currently owned by Permira. But the Thais could face competition from private equity firms, including Blackstone and BC Partners.[Sunday Times p.3.1]

Invensys braced for bidding war

Invensys is reportedly attracting bid interest from major overseas industrial groups, including Siemens ABB, Emerson and General Electric. The potential suitors have all made informal approaches in recent weeks, with options ranging from a takeover of the whole engineering group or a break-up and sale process. [Sunday Times p.3.2]

Investors to savage Cookson and 888

Significant rebellions over executive pay are expected to focus this week on AGMs being held by Cookson and online gambling firm 888 , the latest targets for what is being called the 'Shareholder Spring. The Association of British Insurers has tagged both companies with a 'red top' alert, its strongest warning to investors. [Sunday Times p.3.3]

Departing Aviva chief demanded 9.5% pay rise

Ex- Aviva CEO Andrew Moss demanded a 9.5 per cent pay rise in the weeks before his departure, claiming he was underpaid in relation to rival insurance chiefs after accepting a pay freeze last year. But Moss's demand was rejected, although he was still given a 4.8 per cent increase - which he was forced to waive again because of investor pressure. Meanwhile, it appears that Andy Haste, the former RSA head who is external frontrunner to succeed Moss, has told 'friends' he is not interested in the job. [Sunday Telegraph pp.B1, B3]

JP Morgan cost hedge funds dear

London hedge funds are facing a US$100m-plus 'hit' from the surprise US$2bn trading loss at JP Morgan Chase disclosed late last Thursday. London funds, including Odey Asset Management, Lansdowne Partners and GLG, together had more than US$1bn invested in JP Morgan, whose shares lost US$14.4bn in value on Friday. [Sunday Telegraph pp.B1, B5]

Customers will have to pay for ring-fencing, warns RBS boss

Royal Bank of Scotland chairman Sir Philip Hampton says the government's 'expensive' plans to ring-fence retail operations from more risky investment banking will inevitably see the higher costs passed on to individual and business customers. Hampton, in an interview with the Sunday Telegraph, admitted that the bank would have to become more efficient as a result of ring-fencing - raising the possibility of further job losses at the state-owned bank. [Sunday Telegraph pp.B1, B8]

Lloyds nears deal to sell branches

Lloyds Banking Group is continuing negotiations with the Co-operative Group over the sale of its 632 bank branches, just weeks after ending exclusive talks. Lloyds has apparently suggested a 'quasi-reverse takeover' of the Co-op Bank, which would see effectively Lloyds management and technology used to run the branches for the Co-op. [Sunday Telegraph p.B1]

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