PRESS DIGEST - British business - July 10

The Times

M&S ACCUSED OF HYPOCRISY AFTER ROSE ATTACK ON CUT-PRICE FASHION

Marks & Spencer (MKS.L) came under fire on Thursday after Associated British Foods (ABF.L), the owner of Primark, confirmed that it shared some suppliers with its upmarket rival. The news came one day after Sir Stuart Rose, the executive chairman of M&S, attacked the budget fashion industry over subsistence wages. Anti-poverty charity War on Want accused M&S of hypocrisy. "This underlines the systemic problem that no leading British fashion retailer can guarantee a living wage and decent conditions for garment workers," said Simon McRae, the charity's senior campaigns officer. The retailing giant rejected the claim that its ethical stance had been undermined, saying it had only three suppliers in common with Primark and took products from only one factory in common, but conceded that the number varies as contracts expire.

LAW FIRM PARTNERS' PROFITS DOWN BY TENTH AFTER RESTRUCTURING

Allen & Overy, Britain's fourth-largest law firm, will announce on Friday that February's big restructuring, which saw 450 salaried employees and 47 equity partners leaving the group at a cost of 46 million pounds, led to an almost 10 percent drop in partners' profits in 2008. However, despite a drop from 1.1 million pounds, the group's profits per equity partner remained above the benchmark one million pounds level, with Allen & Overy's most senior partners earning 1.35 million pounds in the period, down from 1.65 million pounds the year before. Turnover for the year to the end of April grew by seven percent to 1.1 billion pounds, partly because of the strength of its billings in eurozone countries.

EJECTION AT IBERIA TO GIVE TAILWIND TO BA MERGER

Spanish flag carrier Iberia (IBLA.MC) has announced that Antonio Vazquez, the former chief executive of tobacco producer Altadis, will replace Fernando Conte as the group's new chairman. The move is expected to kick-start talks with British Airways (BAY.L) over a potential merger that would create one of Europe's largest carriers. Willie Walsh, chief executive of BA, which owns about 10 percent of Iberia and has a seat on its board, said of Vazquez's appointment: "We are confident that his business and leadership skills will ensure that the relationship with British Airways will continue to develop."

The Daily Telegraph

ANGLO HIRES PARKER AS CHAIRMAN