Controversy over RBSs Wimbledon involvement

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Economy
Written by Gary Howes and Sharecast   
Monday, 22 June 2009

Morning Business News, Monday 22nd June: RBS, Anglo American, Aviva...

 

It has been reported this morning that RBS (LON:RBS) is embroiled in a new controversy after it emerged that it would be spending hundreds of thousands of pounds on entertaining at Wimbledon.

RBS is due to spend up to £300,000 on corporate hospitality, despite being saved from possible collapse after being given a £20bn injection by the Government last year, the Times writes.

Meanwhile RBS has said it will this week unveil a £9.6m pay package for chief executive Stephen Hester, after securing support for a long-term incentive plan from shareholders last week.

At a meeting on Friday at the bank’s Bishopsgate headquarters, Sir Philip Hampton, RBS’s chairman, won the backing of UK Financial Investments – which controls the state’s 70% RBS stake – as well as that of other top-20 shareholders, the FT reports.

Anglo American and Xstrata deal


Anglo American (LON:AAL), the mining and natural resources giant, was rehearsing its defence last night against a £41bn merger approach from Xstrata, its Anglo-Swiss rival.

Anglo American confirmed a merger proposal from Xstrata but was markedly unenthusiastic, emphasising that the situation “is at a very preliminary stage and that there is no certainty that any transaction will be forthcoming,” the Times reports.

To stave off an approach the board is expected to tell shareholders that remaining independent would be better for shareholder value.

The group has announced plans to shave $2 billion (£1.2 billion) off its annual costs by 2011 through measures such as cutting 19,000 jobs globally and centralising its procurement operations.

Aviva


Aviva (LON:AV), the owner of Norwich Union, last night announced it was to sell its Australian business for £452 million to National Australia Bank. The life assurer said the deal was part of its strategy to focus on growth markets in Asia where it can achieve dominant positions – it is ninth in the life assurance market and eighth in wealth management in Australia, the Times writes.


 

 
 
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