PRESS DIGEST - British business press - Aug 22

The Times

UBS AND VESTRA REACH PACT OVER RAID CLAIM

The Swiss bank UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz) has dropped its legal action against wealth manager Vestra, which it had accused of launching a "smash-and-grab raid" on its UK wealth management arm. UBS sued alleging an unlawful conspiracy after 75 of its staff resigned to join the start-up, but a deal has now been struck. Sources close to the situation said UBS backed down after Vestra agreed not to approach any of its staff or clients before April next year.

ABF FALLS AS CITIGROUP SEES PROBLEMS ON ALL FRONTS

Shares in Associated British Foods (ABF.L: Quote, Profile, Research, Stock Buzz) fell 19 pence to 764 pence after analysts at Citigroup cut their target price from 850 pence to 700 pence and reiterated their "sell" advice, citing higher energy and raw materials costs and the slowdown in consumer spending. The broker also warned that the business model of ABF's retailing business Primark would face a "very robust test" in 2009.

PORTLAND GAS WINS AN ADMIRER

Shares in Portland Gas fell 0.25 pence to 280.5 pence on Thursday in spite of Seymour Pierce reiterating its "buy" advice. The shut-down of a key Norwegian gas pipeline highlights the need for more gas storage in the UK, with Seymour Pierce analyst Asa Bridle emphasising the key strategic role of Portland's storage facility off the Dorset coast - due for completion in 2011 - in stabilising domestic gas supply. The value of the asset was currently undervalued by the market, the broker said.

The Daily Telegraph

RAB BOSS ADMITS HIS REGRET AT ROCK LOSS

Philip Richards, the philanthropist boss of hedge fund RAB Special Situations, is considering spending more cash on buying back the fund's shares from disgruntled shareholders after wrongly betting that Northern Rock NRK.L would not be nationalised. "We have suffered a very negative July," said Richards, who admitted the loss in Northern Rock was "very regrettable". RAB's net asset value has fallen 33 percent since the start of the year; the share price has slumped 51 percent.

XSTRATA INDOPHIL OFFER IS FINAL

Xstrata (XTA.L: Quote, Profile, Research, Stock Buzz), the Anglo-Swiss miner, has said it will not extend its takeover offer for the Australian-listed prospector Indophil Resources beyond August 29, the scheduled closing date. A consortium comprising investment groups Crosby Capital, the Alsons Group and Indophil chief executive Richard Laufmann has been in a bidding battle with Xstrata. Charlie Sartain, chief executive of Xstrata Copper, said: "We see no value in remaining involved in a competitive process with the consortium".

COVENTRY MORTGAGE SURGE BUCKS TREND

Coventry Building Society's safe haven status has been enhanced amid the deepening credit crisis as consumers turn back to "low-risk" mutuals. CBS has seen net mortgage lending rise 24 percent to 851 million pounds in the first half - three times its normal market share - with chief executive David Stewart citing the building society's focus on "low-risk lending" as a major strength in the current gloom. ".All of our mortgage advances were fully secured on residential property," he said.