PRESS DIGEST - British business - Nov 21

Daily Telegraph

BLACKSTONE MOVES TO TAKE OVER GALA CORAL

Blackstone (BX.N) has been allowed to conduct due diligence at Gala Coral after making an audacious late intervention in the bingo group's 2.5 billion debt restructuring. Blackstone could make a 250 to 300 million pound cash injection in Gala, which was valued at five billion at its peak, in return for a majority stake. Gala's private equity owners -- Cinven, Candover and Permira -- have already agreed a deal with junior lenders designed to keep the business' bingo and gaming divisions together. However, this would be usurped should Blackstone's offer be accepted.

TESCO MOVES CLOSER TO FULL BANKING WITH IT SYSTEM

Fiserv has been appointed by Tesco (TSCO.L) to provide the software to enable it to become a full-service bank. Fiserv's involvement, as one of the world leaders in providing retail banking software, will turn the supermarket from a provider of a collection of financial products into an integrated, full-service bank which is expected to make great inroads now that competitors are struggling. David McCreadie, commercial director of Tesco Bank, called for patience in a meeting with investors, saying it would take time to develop the correct proposition on current accounts and that expanding into mortgage lending would require a broader source of funding.

MERGE WITH HERSHEY, ANALYST TELLS CADBURY

Richard Royden, head of GFI's European Special Solutions group, has called on Cadbury (CBRY.L) to merge with Hershey with a dual-listing of the company's shares on the London and New York markets. Royden told Cadbury chief executive Todd Stitzer in a letter that the move would be its best defence against Kraft's (KFT.N) unwanted 10 billion pound bid. Fifty-five percent of the company would be listed in London and 45 percent in New York under Royden's analysis, minimising debt issuance and avoiding "equity dilution for existing Hershey shareholders".

The Times

UKFI'S FORMER HEAD IS SET TO JOIN ROTHSCHILD