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 thinks utilities such as Severn Trent (Last IC rating: Hold, 30 May) and Pennon Group (Last IC rating: Sell, 17 Aug) offer investors a spread of returns and potential capital gains that 'look more attractive than many other stock market sectors'.
The Independent
■ No Pain, No Gain: Derek Pain has high hopes for portfolio member Northern Petroleum (Last IC rating: Hold, 8 Jun), which he considers is 'fundamentally undervalued', and has also added financial services group Brightside (Last IC rating: Buy, 17 Sept) at 18.5p (now 22.5p).
The Daily Mail
■ Investment Extra: Ruth Lythe reports on a visit to Turkey (hosted by Threadneedle Investments) which highlighted the country's growth prospects and Istanbul's plans to become a financial hub to rival Dubai.
The Sunday Times
■ Inside the City: Danny Fortson thinks QinetiQ CEO Leo Quinn has nearly completed his three-year transformation of the 'rudderless group' and so may now be interested in consolidation among second-tier defence firms (Last IC rating: Hold, 24 May).
■ Settlement of a royalties row should help Genel Energy shares recover, although there needs greater clarity on whether it is a permanent deal (Last IC rating: Buy, 24 Aug).
The Sunday Telegraph
■ Questor: Garry White says hold G4S, 268.5p, as even if it loses UK government contracts there is scope for growth in emerging markets such as Brazil (Last IC rating: Hold, 28 Aug).
■ Buy Lookers, 70p, after last week's fall following the decision by Jack Petchey to sell his 17 per cent stake (Last IC rating: Buy, 15 Aug).
The Mail on Sunday
■ Midas: Joanne Hart says buy Software Radio Technology, 20.5p, as a speculative recovery play on growing demand for its technology making shipping safer (Last IC rating: Hold, 13 Mar).
■ Update: Take some profits in Galliford Try, up 49 per cent to 710.5p since being tipped in January, but 'selling completely would be unwise' given its prospects and generous dividend payments (Last IC rating: Buy, 18 Sept).
Business press headlines courtesy of Weekend City Press Review:
Cameron to back BAE/EADS deal
The proposed £38bn merger of BAE Systems with EADS is being backed by David Cameron who believes it will benefit both the British company and the broader UK economy. Insiders say Cameron is 'broadly supportive' of the merger and is prepared to explain the deal to President Obama to reassure the Pentagon over BAE's defence contracts. [Financial Times pp.1, 19]
Goldman axes 100 partners as banks feel pain
Goldman Sachs is planning to axe about 100 of its highest-paid partners in a bid to cut costs in the current difficult market conditions hitting all the banks. The 20 per cent cull of partners could save up to US$2bn a year, with details expected to be unveiled within weeks by Michael Sherwood, co-chief of Goldman's London operation. [Sunday Times pp.3.1, 3.5]
BAE woos Pentagon to save deal
The Pentagon has been told by BAE Systems and EADS that they will ring-fence BAE's US defence business following their merger in return for approval of the deal. The plans would also see US nationals appointed to the board of the American operation. BAE sources suggest that the deal cannot proceed if the special security agreement with the Pentagon covering sensitive defence contracts is ended. [Sunday Times p.3.1]
BP board seat for Kremlin
BP is considering the appointment of a prominent Russian director to its board for the first time in its 104-year history. The move would be part of a major new commercial alliance with the Kremlin, including BP taking a significant stake in Russia's Rosneft, along with joint exploration for oil in the Russian Arctic. [Sunday Times pp.3.1]
French to sell nuclear stake
EDF is reportedly in negotiations to sell a 30 per cent stake in the £14bn project to build new nuclear reactors at Hinkley Point in Somerset. French-owned EDF has appointed Credit Suisse to help find an investor, with China Guangdong Nuclear Power Corporation among a number of Chinese investors interested. [Sunday Times p.3.1]
G4S trio for high jump after Games shambles
G4S chief executive Nick Buckles and two other senior executives face being sacked over the Olympic security fiasco, senior City sources believe. At least one of the trio - including chief operating officer David Taylor-Swift and global events head Ian Horseman - could go as part of a board attempt to rebuild the company's reputation. An internal G4S review of the Olympic security problems is due within the next 10 days. [Sunday Times p.3.2]
AA 'to be sold off' in £5bn deal
The AA roadside assistance organisation could be sold by its private equity owners for about £5bn, with Saga Group also up for sale. Ernst & Young has been appointed to explore options for the AA and Saga which operate under the Acromas umbrella, owned by Charterhouse, CVC Capital Partners and Permira. [Sunday Telegraph p.B1]
FSA demands new legal powers after Libor manipulation scandal
The Financial Services Authority wants new powers to tackle banking malpractice in the wake of the Libor rate-fixing scandal. The FSA says it believes there needs to be 'forceful punishment' of bankers caught breaching regulations, while there is also expected to be a fundamental overhaul of the way the Libor rate is set in future. [Sunday Telegraph p.B1]
Mental health-care group plots £500m hospitals exit
Private equity firm GI Partners has appointed Rothschild to help find a £500m buyer for Cambian Group, the UK's largest mental healthcare provider. In a separate move, KPMG has been hired by August Equity to organise the sale of Enara, which provides in-home care for the elderly. [Sunday Telegraph p.B1]
Calls for bond to exit Xstrata
Xstrata chairman Sir John Bond has indicated he will not stand in the way of the £49bn takeover by Glencore if this is wanted by major shareholders. The guidance comes as some key investors believe Bond should step down because of his handling of the situation, which has moved from an agreed merger to a near-hostile bid. [Sunday Telegraph p.B2]
