Below are the key updated headlines from today’s papers, featuring the The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
Galliford Try rejects £950m approach for housebuilding arm from Bovis. City investors piled into struggling construction giant Galliford Try (GFRD) on Tuesday, on hopes that its decision to reject a £950 million approach for its housebuilding arm from Bovis Homes Group (BVS) could lead to an auction. Bovis Homes confirmed weekend reports that it made an all-share proposal for Galliford’s Linden Homes and regeneration businesses. It said the bid was rejected on Friday because the takeover target, which was advised by Rothschild, “did not believe that the proposal fully reflected the value” of the businesses. FTSE 250 builder Bovis said the companies are no longer in discussions. Galliford also confirmed this in a brief statement.
Provident bidder suffers blow as M&G snubs deal. The acrimonious £1.3 billion bid from Non-Standard Finance (NSF) for Provident Financial (PFG) took another twist on Tuesday when M&G said it is against the deal. NSF, led by former Provident boss John van Kuffeler, launched a hostile all-share offer back in February with the backing of 50% of investors, which led many to assume it would easily win. Since then, the battle has been tough. NSF has struggled to win over many more investors. On Tuesday M&G, which has towards 2% of the stock, said it doesn’t back the deal. It said: “M&G is supportive of PFG’s current strategy and does not believe that a combination with NSF and subsequent break-up of the enlarged group will create value for PFG shareholders, and therefore is not in the best interest of our investors.” NSF also needs the backing of City watchdog the Financial Conduct Authority and the Competition and Markets Authority. It looks far from certain that either will approve.
Boots to close hundreds of stores in fresh blow to high street. Boots, one of the UK’s biggest retailers, is planning to shut hundreds of stores across the country, delivering a fresh blow to the battered high street. The pharmacy and beauty chain, owned by US group Walgreens, is examining around 200 closures as it battles dwindling shop footfall caused by more people shifting online. The closure plans come just two weeks after Boots reported profits had dropped by 18% to £317m last year while sales inched down 2% to £6.8bn. Walgreens said there would be a “significant restructuring” as part of a drive to save more than $1.5bn (£1.2bn) in annual costs by the 2022 financial year.
Five-a-side operator races to get to bottom of mystery £12m tax hole. Britain’s biggest operator of five-a-side football centres is scrambling to explain a multimillion-pound tax hole in a crisis that could see its stock market listing revoked. Goals Soccer Centres (GOAL) warned on Tuesday that it may not be able to file its 2018 annual report within a six-month window. This could result in London’s junior Aim market cancelling the listing of Goals’ shares. The alarm comes as the company, flanked by forensic accounting specialists from BDO, grapples with a VAT hole of at least £12m. Goals and its advisers are locked in negotiations with HM Revenue & Customs in a bid to finalise its tax liability as soon as possible.
Renault-Fiat merger must protect jobs, says France. Paris will approve Renault’s proposed €33 billion (£29 billion) merger with Fiat Chrysler only if executives can guarantee no French factories will shut under the deal. Bruno Le Maire, the French economy minister, described the planned tie-up as a “beautiful opportunity” for Renault and for the European car-manufacturing industry. However, he said that the French state, which holds a 15% stake in Renault, would oppose the operation if his demands were not met. He said that his main requirement was that “industrial jobs and industrial sites” are maintained in France. “I told the chairman of Renault, Jean-Dominique Senard, very clearly that it was the first of the guarantees I wanted from him in the opening of these negotiations with Fiat,” he said.
Amigo Holdings vows to fight loan ‘myths’ as regulator adds pressure. Amigo Holdings (AMGO) has claimed that “myths” have developed around the guarantor loans industry and vowed to tackle them as it posted a jump in profits in its first set of annual results as a listed company. Since its flotation on the London stock exchange in June last year, Amigo and other guarantor lenders have faced growing scrutiny. The Financial Conduct Authority said earlier this year that it was increasing its focus on the industry. Amigo issues loans to individuals who have difficulty accessing credit that are guaranteed by a family member or friend, who are on the hook if the borrower misses a repayment. Amigo is the biggest player in the sector but its shares have come under pressure after the FCA said in March that it was worried that the proportion of guarantors making at least one payment was rising.