PRESS DIGEST - British business press - Nov 6

The Times

DIC FORCED TO PLOUGH IN 53 MILLION POUNDS TO PROP UP DONCASTERS

Sovereign wealth fund Dubai Investment Capital has injected 53 million pounds into its 700 million pound engineering business Doncasters, in order to prevent a breach of banking covenants. DIC has been hit hard by the credit crunch after buying at the top of the market and, of its six portfolio companies, only Merlin has survived this year without an injection of capital. DIC has paid almost 100 million pounds in total into Doncasters, German industrial packaging business Mauser and UK hotel business Travelodge.

TREASURY SAYS NORTHERN ROCK MAY LOSE SAVERS AS GOVERNMENT PULLS OUT

The Treasury expects the withdrawal of government guarantees protecting 100 percent of deposits at government-backed bank Northern Rock will precipitate the withdrawal of billions of pounds of retail deposits. Treasury insiders have indicated that the government intends to removes the 100 percent guarantees in the spring in order that the "good bank" part of the business can be valued and sold back to the private sector.

RISE IN ADVERTISING SPENDING HIGHLIGHTS RENEWED PUSH FOR VOLUME BY UNILEVER

There are signs that advertising spending -- regarded as a significant indicator of economic activity -- is rising. Unilever (ULVR.L) announced Thursday that its spending on advertising rose 13 percent in the three months to Sept. 30 while ITV (ITV.L) reported a 4 percent year-on-year rise in advertising sales for December, the first rise since June 2008. Marks & Spencer (MKS.L) is to screen nine different advertisements over the Christmas period on a budget of 10 million pounds. General advertising spending in the UK is expected to be down by around 15 percent this year. Internet advertising is expected to fall by a much smaller percentage.

TEMPUS

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