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Issue 1,387 Monday 23 May 2011 www.cityam.com FREE

BANKING SET FOR London top

for female
fund heads
ASIAN JOBS BOOM
▲
HEDGE FUNDS
BY RICHARD PARTINGTON
LONDON has emerged as the equal
FINANCIAL SERVICES top location for female hedge fund
▲

BY JULIAN HARRIS AND JOHN DUNNE managers, a new study published

CITY workers are looking towards the
Far East for the fastest expanding job
opportunities, a survey from a top
headhunting firm out today reveals.
Almost three quarters of banking or
hedge fund staff named eastern Asian
cities as the leading job-creators for
financial services, according to
recruiters Astbury Marsden.
Singapore will create the most
financial services jobs in the next year,
according to more than one in three
(37 per cent) respondents.
The news coincides with HSBC’s
decision to boost its headcount in
China and Singapore by 2,000 in the
next five years. The finding also comes
at a time when record numbers of
Londoners are looking East for work
and career progression.
“Cities close to emerging markets
are at the forefront of the global
expansion in financial services,” said
Astbury Marsden CEO Mark Cameron.
As well as Singapore, City workers
named Shanghai (19 per cent) and
Hong Kong (17 per cent) as booming
areas for financial services. Fewer
than a quarter (22 per cent) expect
London to lead the way for new jobs.
Just one per cent named New York.
The news chimes with evidence
from recruitment firm Hays and its
research partners Oxford Economics.
FTSE 100 t5,948.49 -7.50
Nearly three in four financial workers named Asian cities as likely generators of the most jobs in the coming year
Highly skilled westerners will increas-
ingly migrate to emerging economies
in the east, they forecast.
“I foresee a lot of people in the west
moving to places like China, where
they’ll be very welcome,” economist
Jens Tholstrup said. “Whereas in
wealthy countries, we put the shutters
down on migration.”
Demand for financial services will
soar as emerging economies develop
DOW t12,512.04 -93.28 NASDAQ t2,803.32 -19.99
at a rapid pace, Oxford Economics, a
consultancy, is predicting.
Singapore ranks 28th in the world
for competitive personal tax levels,
with a 20 per cent top rate. The UK
now ranks 83rd out of 86 countries
surveyed by consultants KPMG.
“Where companies are operating in
more than one country both business
and personal taxation become more
important, with the importance of
£/$ 1.62 unc £/¤ 1.15 ▲+0.02
Picture: REX
personal taxation increasing steadily
with the number of countries
involved,” a Deloitte survey found last
year. “Relatively high levels of busi-
ness and personal taxation have
resulted in a significant perceived
decrease in [the UK’s] attractiveness
over the past 10 years.”
Corporation tax in Singapore was
reduced to 17 per cent two years ago.
ECONOMICS: P12-13
¤/$ t1.42 -0.01
today finds.
The capital hosts 16 of the top 50
leading women in hedge funds, who
between them manage several billion
pounds worth of assets, according to
the study by the Hedge Fund Journal
in association with professional serv-
ices firm Ernst & Young.
Traditionally, hedge fund business-
es have been male dominated, but
women are making an increasing
contribution to the sector’s develop-
ment and success.
There are also 16 female US female
hedgies on the list, the same number
as Londoners, in a sign that other cen-
tres are eroding London’s traditional
dominance of the industry.
Among the UK female hedge fund
bosses on the list is the embattled
Elena Ambrosiadou of Ikos, who is
alleged to have ordered a private
detective to snoop on her estranged
husband and other colleagues at the
fund.
“The 50 Leading Women in Hedge
Funds 2011 survey definitely shows
the role of women in hedge funds is
expanding,” said Bill McIntosh, editor
of the Hedge Fund Journal. “This is an
industry that is innovative and chang-
ing rapidly, in short, an ideal environ-
ment for talented women to tap new
opportunities.”
FEMALE FUND STARS: P6-7
Certified Distribution
04/04/11 - 01/05/11 is 103,899

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 2 News
Greece is fast running out of money
EDITOR’S LETTER
ALLISTER HEATH
IT is looking worse by the day for
Greece as the debt crisis trundles
towards its inevitable and disastrous
endgame. A default, however dressed
up, can now only be a matter of time:
the cash is fast running out.
There is growing panic in Frankfurt,
home of the European Central Bank
(ECB), which has emerged as one of the
biggest unforeseen victims of Greece’s
implosion. The ECB, formerly a bastion
of conservatism, has found itself sad-
dled with vast amounts of dodgy
Greek bonds. Their loss in value would
be crippling were Athens to fail to
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Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
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editorial content of publications under the Editor’s
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Beam Reach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
WHAT THE OTHER PAPERS SAY THIS MORNING
BAIN PULLS OUT OF RAC AUCTION
Bain Capital has pulled out of the bid-
ding for RAC, the roadside rescue busi-
ness of UK insurer Aviva. The US
private equity group last week dropped
out of the auction after bidding less
than its rivals, people close to the situa-
tion said. That leaves Carlyle, Clayton
Dubilier & Rice and BC Partners still in
the running for the company, which is
valued at about £1bn.
CDB SEEKS TPG STAKE
China Development Bank, one of the
country’s largest state-owned banks,
has applied to regulators for permis-
sion to join a group of sovereign wealth
funds buying a minority stake in buy-
out firm TPG, according to people
familiar with the matter. CDB’s request
is the latest indication of the private
equity fever sweeping China as deal-
makers leave the major buy-out firms
to set up their own investment firms.
meet its next interest payment or even
if a softer “rearranging” of Greek loans
takes place. Astonishingly, the ECB
could actually become insolvent, trig-
gering a major constitutional crisis in
Europe. A bust ECB could start print-
ing itself out of trouble, in defiance yet
again of the European Treaties, but
that would surely be a step too far for
German public opinion. Already, some
German academics are suing the
authorities, arguing – convincingly –
that the treaties ban bailouts of impru-
dent countries and that these are
therefore illegal. Given that the Greek
banking system would have collapsed
had the ECB refused to accept Greek
bonds as collateral for its injections of
liquidity, there is no easy way out.
One delaying tactic would be for
Greece to privatise as much as possible
to raise cash. This process has already
started. One of the country’s biggest
problems is its corporatist nature: real,
deregulated, hard-core capitalism is
needed to start creating real jobs and
to build a sustainable economy. The
UK ready for
Obama visit
POLITICS
▲
BY STEVE DINNEEN
PRESIDENT Obama will hold crunch
talks with David Cameron on
Wednesday to discuss the global econ-
omy and the allied response to the
conflicts in the Middle East.
Obama will arrive in the UK tomor-
row morning, when he is scheduled to
meet with the Queen in Buckingham
Palace.
He will then go to Westminster
Abbey to meet both David Cameron
and Ed Miliband. The full meeting
with Cameron will be held the follow-
ing day.
The trip will stress the importance
of the “special relationship” between
the US and the UK, with Obama’s
press director saying “There’s no closer
ally for the United States in the world.”
He added: “we are coordinating
SHORT SELLERS SET TO TARGET
LINKEDIN
Shares in LinkedIn are expected to
come under downward pressure this
week, as they attract the attention of
aggressive traders who are prepared
to bet on a fall in the business net-
work’s stock price. Tomorrow restric-
tions on short selling the stock will be
lifted. A short sale involves borrowing
stock and selling it, in the hope that
the price falls and it can be bought
back more cheaply – generating a
profit.
FOOD PRODUCERS ACCUSED OVER
PALM OIL
Plantation owners and pressure
groups are calling on food producers
such as Unilever and Nestlé to stop
exploiting an environmental “offset”
scheme to buy palm oil from unsus-
tainable sources. Growing demand
and spiralling prices in the $50bn
palm oil market mean plantation
owners are clearing forests to plant
more palm trees.
idea floated by Jean-Claude Juncker,
the Eurozone grandee, that Greece cre-
ate an independent agency, including
foreign experts, to manage the privati-
sation of state assets, is a sound one.
Such an agency could be modelled on
the German Treuhandandstalt agency
that very successfully privatised East
German companies after the fall of the
Berlin Wall. Crucially, sell-offs need to
be conducted openly; this must be no
post-Soviet corrupt carve-up.
But while privatisation is a good
idea in theory, no foreign investor with
any sense should touch any of these
assets. If Greece were to quit the euro
and adopt a new currency, it would
immediately undergo a massive deval-
uation of at least 50 per cent, with for-
eign owners of Greek assets suffering
commensurately massive losses.
Unfortunately for the Greek govern-
ment, it would be equally silly for
Greek citizens or firms to invest in pri-
vatised assets. For them, the only hope
is to export as much capital as possible
outside Greece before all hell breaks
with them and closely aligned with
them on issues ranging from our
efforts in Afghanistan, our counterter-
rorism efforts, our ongoing efforts in
Libya, our G20 agenda, and our non-
proliferation activities.”
Before arriving in the UK, Obama
will visit Ireland, where he will meet
with President McAleese and Prime
Minister Enda Kenny.
He will arrive in France for the G8
meetings on Thursday where he will
also meet President Medvedev of
Russia, before flying to Poland.
VOICE OF THE CITY PANEL: P9
Obama is expected to
stress the importance
of the “special rela-
tionship between the
US and the UK.
CITY WATCHDOG QUESTIONS FAILED JAGUAR LAND ROVER TO PROVE RECOV-
BANK OVER SIR FRED’S “OFFICE ERY WITH £1BN PROFIT
AFFAIR” Jaguar Land Rover will this week
Royal Bank of Scotland is braced for
the City regulator to refer to Sir Fred
Goodwin’s alleged affair with a col-
league in its long-awaited report into
the bank’s collapse. As fallout from
Sir Fred’s superinjunction spreads,
the Financial Services Authority (FSA)
has contacted the bank for details of
the alleged liaison involving the for-
mer RBS chief executive.
SIZE MATTERS AS COMPUTER MAKERS
FALL ON HARD TIMES
A combination of a tighter economic
environment and the advent of tablet
computers has put the squeeze on
the makers of traditional computers
and laptops. Demand was at a stand-
still in the first three months of this
year as consumers and businesses put
off buying new equipment.
loose, the local banking system is
nationalised, capital controls imposed
and a far-left government elected.
Local bank accounts and assets would
see their value trashed in the event of a
euro exit and devaluation; but money
and assets invested abroad would
retain their value. Capital has been
fleeing Greece for many months
already – why would anybody buck the
trend and risk ruin by investing in the
Hellenic economy?
For investors, the strategy is clear:
keep well clear of any institution with
exposure to Greece or any other trou-
bled Eurozone economy. For European
politicians, however, the task is alto-
gether more difficult: the mighty euro
they spent so long building is under
threat, not from the dollar, another
rival superpower or even from British
eurosceptics, but from the internal
weaknesses and contradictions that its
opponents had always warned would
be the single currency’s downfall.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Ecclestone owns 62 per cent of QPR
QPR takeover talk cooled
SPORT BUSINESS
▲
BY FRANK DALLERES
MOTORSPORT tycoon Bernie
Ecclestone yesterday played down
talk of Lakshmi Mittal, Britain’s rich-
est man, taking full control of foot-
ball club Queen’s Park Rangers.
Formula One boss Ecclestone, who
owns 62 per cent of the west London
club, compared the situation to
Rupert Murdoch’s recent interest in
buying CVC, which owns the com-
mercial rights to F1. “Mittal put a
unveil record annual profits exceed-
ing £1bn, completing the luxury car
maker’s remarkable recovery from
the depths of the recession. JLR is fore-
cast to post net profits in the region of
£1.1bn for the year to 31 March, com-
pared with a gain of £32m last year
and a £281m loss in first 10 months
under new owners Tata Motors. The
record profit comes only two years
after the car maker was forced to seek
Government support
SOHO HOUSE SALE CALLED OFF
Soho House has been taken off the
market after its two shareholders
agreed not to sell the business for at
least another year. The private mem-
bers’ club business received a number
of private equity approaches valuing
the business at as much as £300m.
CITYA.M. 23 MAY 2011
NEWS | IN BRIEF
Iceland volcano shuts airspace
A new volcanic eruption is affecting
flight paths around Iceland and could
spread into Europe, forecasters warned
yesterday. Icelandic airspace was shut
for parts of the day. European carriers
including British Airways said last night
they were not expecting any disruption
as a result of the Grimsvotn volcano
erupting, and volcanologists were hope-
ful that the ash released would be less
dangerous for planes than the disruptive
clouds last April. Ash could reach north-
ern Scotland tomorrow and parts of
Britain, France and Spain by Thursday or
Friday, airlines were warned.
Cabinet to volunteer a day a year
Prime minister David Cameron has
called on his Cabinet to volunteer their
services for a day a year as part of his
Big Society initiatives. In a speech today
he will say he wants to make giving
more of a social norm. “And when I say
we - I mean literally we – the Cabinet.
We’re all giving at least a  day a year  vol-
unteering. And we’re encouraging all our
civil servants to do the same.” Cameron
will say he wants to prove the govern-
ment is about more than just cuts.
Picture: ACTION IMAGES
statement out to say he was going to
buy all the shares on Monday [today],”
said Ecclestone, who owns 62 per cent
of the newly-promoted Premier
League outfit.
“But it’s a bit like these Murdoch
people saying they’re going to buy
CVC. They have forgotten to ask if it’s
for sale.”
Indian steel magnate Mittal cur-
rently holds a minority stake in QPR.
Ecclestone, 80, has previously said for-
mer chairman Flavio Briatore has
first refusal on his shares.
RUSSIAN FIRM LEADS IPO PACK
Eight initial public offerings will
make their US debuts this week, but
there’s one standout: Russian
Internet search engine Yandex NV.
Consumer Internet stocks are a hot
commodity now, especially following
LinkedIn stellar initial public offering
last week, during which its shares
doubled on the first day.
TNT PRESSED TO SELL EXPRESS BUSINESS
Dutch logistics company TNT NV is
preparing to separate its mail and
express operations, but pressure on
management at the express business
is mounting as doubts grow over its
ability to deliver a turnaround and
some shareholders argue the compa-
ny should explore a sale. If sharehold-
ers approve the company’s split-up
proposal, Chief Executive Peter
Bakker will depart, leaving behind
some unhappy investors.
CITYA.M. 23 MAY 2011 News 3

Huhne faces fresh

Former Miss Wales
Imogen Thomas
claims to have had
an affair with the
player, whose name

speeding questions
has been revealed
in Scotland
Picture: GETTY

to change his version of events.

▲
POLITICS
BY RICHARD PARTINGTON
EMBATTLED cabinet minister Chris
Huhne came under renewed pressure
at the weekend over allegations he
asked someone else to accept penalty
points on his driving licence for a
speeding offence.
The energy secretary’s position
appeared to worsen, after it was
reported that he could be gearing up
He was said to be prepared to tell
police this week that he could not be
sure whether he was driving his car
when it was caught travelling over
the speed limit by a camera in Essex
in 2003.
It is alleged that the MP asked his
estranged Vicky Pryce to take the
points in order to avoid a driving ban.
Huhne is fighting for his political
life over the allegations.

Editor stands
by decision to
break order
footballer accused of using the courts
▲

MEDIA
BY STEVE DINNEEN
THE editor of a newspaper that print-
ed the identity of a footballer who
took out a super injunction to hide an
alleged affair yesterday said he wanted
to “spark debate” over current laws
which “fly in the face of logic”.
In an interview with City A.M.,
Sunday Herald editor Richard Walker
said he does not believe his newspaper
risks falling foul of the courts.
He said: “This information is avail-
able to everyone, but newspapers are
not allowed to even mention it. So our
decision to run the story wasn’t based
on the individual case – it was about
looking at press freedom.
“The current situation flies in the
face of logic. Everybody knows [the
footballer’s] identity – we are not
telling anybody anything they didn’t
already know.”
The newspaper, owned by regional
publisher Newsquest, ran a front-page
story featuring the face of a prominent
Premier League footballer with a thin
black line covering his eyes and the
word “censored” written across it.
The caption below the photograph
read: “Everyone knows that this is the
to keep allegations of a sexual affair
secret. But we weren’t supposed to tell
you that...”
City A.M. is not allowed to reveal his
identity while the injunction stands.
Some lawyers have questioned the
legality of breaking the gagging order.
However, Walker said: “Injunctions
granted through an English court
don’t apply in Scotland.
“It’s not a case of declaring war on
the English courts. We’re a Scottish
newspaper, we don’t distribute in
England, the story isn’t on our website
and we believe it was right to run this
story.” Former Miss Wales Imogen
Thomas claims to have had an affair
with the player, who yesterday fea-
tured in over 12,000 posts on Twitter.
A footballer last week launched
legal proceedings against the
microblogging site in a bid to uncover
the identity of a user who posted infor-
mation about alleged super injunc-
tions. In a separate case, a journalist –
whom we are also banned from nam-
ing – could face jail after posting
details about an alleged injunction.
The Attorney-General’s office last
night said it would investigate the
Sunday Herald if asked to do so.

Greece vows to continue budget

cuts and avoid debt restructuring
that Greece will be able to cover its
▲

WORLD ECONOMY
GREEK Prime Minister George
Papandreou will discuss new meas-
ures with his cabinet today to cut the
budget deficit, in an effort to con-
vince lenders Greece can deal with a
debt crisis without a restructuring.
At stake is a €12bn (£10.4bn) aid
tranche under the EU/IMF bailout
agreed last year, as well as additional
help as the country is not expected to
return to bond markets in 2012.
“Debt restructuring is not under
discussion,” Papandreou said in a
Greek Sunday newspaper interview.
But at the same time he conceded
that “it does not appear at present
borrowing requirements in 2012 nor-
mally, from the markets”.
Papandreou must present a fiscal
plan this week that is credible
enough for the European Union and
the International Monetary Fund to
continue bankrolling his country.
One year into its EU/IMF €110bn
(£96bn) bailout, Greece is struggling
with weak revenues and deep reces-
sion. The European Central Bank is
opposed to any debt restructuring for
fear of contagion.
Meanwhile the chairman of the 17-
country Eurogroup Jean-Claude
Juncker said Greece should set up an
agency to privatise its state assets.
 4 News
Commerzbank
issues shares
at big discount
▲
BANKING
BY JENNY FORSYTH
COMMERZBANK, Germany’s second
biggest bank, yesterday announced
plans to raise €5.3bn (£4.6bn) by sell-
ing new shares to repay state funding.
The issue price comes at a 45 per-
cent discount to Friday’s closing price
of €3.95, and 30 per cent below the
the theoretical ex-rights price (TERP).
The bank stated it will sell 2.44bn
new shares at €2.18. Shareholders will
be allowed to sign up for 10 new
shares for every 11 already held from
24 May to 6 June, the company said.
The rights issue is part of a series of
measures Commerzbank plans to use
to return €14.3bn of the €16.2bn the
state injected into the bank during
the financial crisis. This will help free
the bank from government controls
such as a cap on bonuses.
Since the beginning of May,
Commerzbank shares have lost
around 12 per cent in value.
Banks had guaranteed the full vol-
ume of the proceeds and negotiated
the discount on the new shares prior
to the announcement of the capital
measures in April.
Germany took a 25 per cent stake
in Commerzbank and full ownership
of Hypo Real Estate during the crisis.
It also invested in so-called silent
participations, a form of non-voting
capital, in Commerzbank, Aareal
Bank and WestLB. The €5.3bn
Commerzbank intends to raise
includes the state Financial Market
Stabilisation Fund’s partial contribu-
tion of its silent participations, the
bank said yesterday.
ANALYSIS l Commerzbank
6.5
€
6 Kahn worked on his defence against
5.5
3.95
5 20 May
4.5
4 Strauss-Kahn, 62, was not allowed to
3.5
28 Feb 18 Mar 1 Apr 29 Apr
Former IMF chief hides away in a Manhattan apartment
Strauss-Kahn getting to
work on his trial defence
ENFORCEMENT
▲
BY HARRY BANKS
FALLEN IMF chief Dominique Strauss-
sexual assault charges yesterday at a
Manhattan apartment where he is
under house arrest following release
from jail.
Under strict bail conditions,
step outside the apartment at 71
18 May Broadway, in the heart of New York’s
Picture: REUTERS
financial district.
The building itself was besieged by
US camera crews with satellite TV
trucks and a contingent of French
journalists. The impressive tower – a
stone’s throw from New York’s oldest
church and the New York Stock
Exchange – even quickly made it onto
the New York tourist route.
Tourist buses yesterday could be
heard highlighting “on your right is
the building where the IMF chief is
now under house arrest”.
CITYA.M. 23 MAY 2011
Lagarde tipped
as frontrunner
for IMF top job
WORLD ECONOMY
▲
FRENCH economics minister
Christine Lagarde is the frontrunner
to take over the post of managing
director of the International
Monetary Fund (IMF).
Chancellor George Osborne said
over the weekend he will formally
nominate her for the position, which
became vacant after Dominique
Strauss-Kahn resigned so he could
fight sexual assault charges.
Osborne said Lagarde was “the out-
standing candidate” who had shown
“real international leadership as
chair of the G20 finance ministers
this year”.
German Chancellor Angela Merkel
called her an experienced “figure of
excellent standing” and French interi-
or Minister Claude Gueant, former
chief of staff to President Nicolas
Sarkozy, said Lagarde would make an
excellent head of the Washington-
based lender.
However Mexico’s finance ministry
said it would nominate central bank
chief Agustin Carstens, placing a
prominent emerging market name
into the race to lead the global lender.
And the finance ministers of South
Africa and Australia were also luke-
warm about Lagarde’s candidacy, call-
ing for candidates to be selected on
ability rather than nationality.
CITYA.M. 23 MAY 2011 News 5

SUPERMARKET SWEEP | HOW MORRISONS AND ICELAND COMPARE

Deal would shake up the supermarkets

COMPETITION objections notwith- at a discount to their European peers, this year will have gone some way to
standing, Iceland’s 780 stores would but Morrisons is particularly under- proving its ambitions, but a move for
be a huge boost to Morrison’s forecast valued – especially when you consid- Iceland would cement Philips’ plans
earnings, giving it the foothold in the er its shares are beating the STOXX and ease Morrisons’ transition into
convenience store industry that chief Europe 600 retail index by nine per the smaller-store market, currently
Founded in 1899 as executive Dalton Philips made cen- cent. dominated by Tesco and Sainsbury’s.
a Bradford market tral to its growth plans last year. Though like-for-like sales in the Morrisons clearly wants to play
stall by William They would also cement first quarter of 2011 were up 2.5 per with the (even bigger) boys, and its
Morrison
Morrison’s presence in the south of cent and well ahead of analyst fore- share price is likely to start to reflect
Runs 442 UK stores the country. Though the Bradford- casts, it remains discounted due to its that sooner rather than later.
based company has made an impact lack of exposure to foreign markets Invest now and be rewarded for its
Paid £3bn for on London and the South East since and to multichannel retailing across ambition.
Safeway in 2004 to its takeover of Safeway in 2004, its convenience stores and the internet.
expand into the share of the London market is still Its acquisition of both baby website
south of the UK half of what it is elsewhere.
UK grocers as a whole are trading
Kiddicare and a 10 per cent stake in
US online grocer FreshDirect earlier
BOTTOMLINE
Bought 38 Co-op / First store opened in Analysis by Elizabeth Fournier
Somerfield stores in Oswestry, Shropshire
2008 for £223.1m in 1970
Has an 11.9 per cent Runs around 750
market share as of
April 2011 stores across the
UK

Waste not,
Headed by Malcolm
Walker, who found-
ed the company and
returned to its helm
in 2005.

Taken private in
2005 following
four-year period of

want more?
declining profits

Has a 1.9 per cent

market share as of
April 2011

Morrisons is WorldSpreads Platinum Account holders have already

saved on average £6,600 by switching to Zero Spreads

leading race
for Iceland
▲

RETAIL agement, led by chief executive

BY ELIZABETH FOURNIER Malcolm Walker (pictured).
Walker, who owns 26 per cent of the
SUPERMARKET chain Morrisons is retailer, bid around £1bn for the
being touted as the frontrunner in the remainder last year and is likely to stay
race to buy into rival Iceland, after in the running as the auction pro-
majority owner Landsbanki officially
launched a sales process for its holding
gresses.
Any potential bid by Morrisons
How much
in the company.
The Resolution Committee for
Landsbanki said last week that accord-
would be complicated by the fact that
both Landsbanki and the Iceland man-
agement have hired the supermarket
could you save?
ing to advisers UBS and Bank of giant’s two go-to banks as advisers.
America Merrill Lynch, “market condi- The Landsbanki committee has
tions are currently favourable” for the
sale of its 67 per cent stake in the com-
mandated Bank of America Merrill
Lynch, while the stores’ management
Find out by going to
pany.
Analysts have valued
is advised by Rothschild, which
worked for Morrisons on its takeover
worldspreads.com/spreadsavings
Iceland, which operates of Kiddicare in February.
around 780 stores across Adding Iceland’s current market
the UK, at about €1.5bn. share of close to two per cent
Buying the portfolio would take Morrisons within spit-
would help achieve ting distance of closest rival
Morrisons chief executive Sainsbury’s, which has a 16.3 per
Dalton Philips’ aim of cent UK market share. Spread betting is a leveraged
strengthening its presence A spokesperson for
in London, and Morrisons had no com- product and can result in losses
expanding into the ment on rumours of a
convenience store bid. that exceed your initial deposit
market. Sainsbury’s also
“Morrisons is the declined to comment search for ‘zero spreads calculator’
only market buyer on speculation that it
that makes sense, might be interested,
though it may still but it is seen as the
come up against com- least likely potential
petition issues,” said bidder, after it looked
an industry source. at Iceland’s portfolio
If Morrisons were in 2005 but only
to launch a bid, it is bought one store.
likely to face oppo- Tesco and Asda said WorldSpreads Limited is authorised and regulated in the UK by
sition from the they did not comment the Financial Services Authority
company’s man- on market speculation.
 6 Focus: Hedge Funds CITYA.M. 23 MAY 2011

London’s new
fund queens
fund managers on the list is Mina

▲
HEDGE FUNDS
BY RICHARD PARTINGTON
THE TOTAL value of assets under
management run by female hedge
fund managers has more than dou-
bled to over $200bn (£122.8bn) in
the space of a year, according to the
latest Hedge Fund Journal and
Ernst & Young study.
Women managed just $45m in
hedge fund assets last year,
accounting for just three per cent
of the $1.5 trillion global market.
But a surge in the number and
performance of high-flying female
hedge fund managers has seen
their share hit ten per cent of the
$2 trillion of assets now held in
funds worldwide.
The money women are running
is at least $100bn if allocators are
included, based on the 30 portfolio
managers in this year’s Hedge
Fund Journal survey.
If the nine female chief operat-
ing officers from the top hedge
fund firms are included, the figure
is pushed up a further $100bn.
Each fund manager in the list
runs at least $1bn and has been
managing money for at least 10
years.
Amongst the highflying London
Gerowin, the top lieutenant to
superstar hedge fund chief John
Paulson.
Gerowin is the managing direc-
tor of the New York-based Paulson
& Co’s London operations, where
she heads several funds.
Andrea French, the chief operat-
ing officer for trading at the elite
Brevan Howard hedge fund, is
another high flying female execu-
tive.
She is ultimately responsible for
the firm’s $30bn flagship fund, as
well as a clutch of UCITS launches
that lie behind Brevan’s asset
growth.
Two women from rival hedge
fund giant Man Group, Michelle
McCloskey and Victoria Parry, also
make the list.
Another 34 top female fund
managers also make up the list,
from the financial centres of
Singapore, Hong Kong, Geneva and
Paris.
Michael Serota, global hedge
fund practice co-leader at Ernst & ANDREA FRENCH
Young said: “We congratulate the Partner & COO
women that made the list this year, trading,
and we look forward to working Brevan Howard.
with them and their colleagues for
many years to come.”

MICHELLE VICTORIA PARRY

MCCLOSKEY Head of product
Head of fund legal, Man Group.
research, Man
Multi Manager.

@ @ MORE NEWS
ONLINE AT
www.cityam.com
PENNY AITKEN
Global head of
investment
research, FQS
Capital Partners.
MARTINA
SLOWEY
Chief operating
officer, Edoma
Partners.

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CITYA.M. 23 MAY 2011 Focus: Hedge Funds 7

GERALDINE

Snooping scandal hits

MINA GEROWIN ANITA NEMES
Managing director, Global head of cap- SUNDSTROM
Paulson & Co ital introduction, Partner, Brevan
Deutsche Bank. Howard.

hedge fund superstar

HEDGE FUNDS in 2009 yet remains a co-owner, is a

▲
BY RICHARD PARTINGTON mathematician and masterminded
CATHERINE KATHRYN the trading algorithms used by Ikos.
CRIPPS GRAHAM Ambrosiadou is also alleged to
Investment Director, BT OF THE 50 leading women in hedge have ordered spying operations
director, GAM Pension Fund funds, one name stands out above against several other Ikos workers.
Multi-Manager. Management. the rest.
Elena Ambrosiadou, who runs
the £1.8bn Ikos hedge fund, is well-
known as a powerful hedge fund
boss and as one of the wealthiest
women in the world. But she is cur-
rently in the news for more contro-
versial reasons.
EFFIE DATSON FIONA CARPENTER MELISSA HILL The Greece-born businesswoman
product head, Chief financial offi- Managing principal, is embroiled in a spying scandal for
dbSelect Platform, cer, TT International. Sabre Fund allegedly ordering a large-scale sur-
Deutsche Bank. Management. veillance campaign against her
estranged husband and other ex-
staff.
She is alleged to have ordered a
private detective to spy on Martin
Coward, her ex-husband, to uncover
information that could potentially
be used in a legal dispute.
A top fund manager who owns
EMILY PORTER- GALIA DAHLIA DANA the world’s largest private sailing
LYNCH VELIMUKHAMET Portfolio manager, yacht in the world, the 300ft
Maltese Falcon, she set up Ikos in
Portfolio manager, OVA J Rothschild 1993 with Coward in London.
USS. Portfolio manager, Capital She relocated to Cyprus in 2007
Man GLG. Managemen.t for tax reasons.
She has been at the forefront of
hedge fund developments in
Europe for two decades.
Coward, who quit the company ELENA AMBROSIADOU
 8 News CITYA.M. 23 MAY 2011

Labelux ties up Jimmy Jimmy Choo’s creative

head Tamara Mellon
will stay at the company
Picture: REX

Choo shoe deal for £500m

Bally, acquired in 2008, and Italian buy the luxury shoe group after out-
▲

M&A
BY PHOEBE TORRANCE
LABELUX luxury goods group yester-
day announced the acquisition of
Jimmy Choo, the upmarket shoe
brand.
Labelux was founded by Austria’s
Benckiser family in 2007 with the
aim of creating a significant new
global player in the expanding luxury
goods sector. Its existing portfolio
includes Swiss luxury shoe brand
accessories brand Zagliani. Under the
ownership of the private group
Jimmy Choo will concentrate on
expanding its presence in the US,
Asia and continental Europe. Jimmy
Choo’s experience in the US will also
help Bally expand there.
Jimmy Choo was founded in 1996
in London by Tamara Mellon, a for-
mer accessories editor for Vogue, and
shoemaker Jimmy Choo.
Labelux was the frontrunner to
bidding competition from TPG
Capital, Investcorp and US retailer
Jones Group. Private equity firm
Towerbrook Capital Partners is selling
the shoe label which it bought four
years ago for ￡180m. A source close
to the seller said the deal was worth
around £500m. Goldman Sachs and
MEET THE ADVISERS
Morgan Stanley ran the auction
process for Towerbrook whilst
Rothschild acted as financial adviser AKEEL
for Labelux. SACHAK
ROTHSCHILD
ROTHSCHILD’S Akeel Sachak led a
team of eight advising Labelux – his
third involvent in a Jimmy Choo deal.
Sachak, who is Rothschild’s global
head of consumer products, was also
an adviser in the £110m sale of the
luxury label by Phoenix Equity
Partners to Lion Capital in 2004 and
the £180m sale by Lion to Towerbrook
Capital Partners.
He said that while the latest sale
process had taken around four
months, dialogue started as long as
two years ago. Rothschild also advised
on Labelux’s debt financing.
Sachak described Labelux head
Peter Harf as “one of the shrewdest
businessmen I have dealt with”,
adding that he was building a broad
luxury goods portfolio.
Recent deals that Sachak has also
been involved in include the sale of
Quorn for Premier Foods, the sale of
Constellation Brand’s Australian and
European wine business and the $8bn
sale of Femsa beer to Heineken.

MORE NEWS
ONLINE
www.cityam.com
CITYA.M. 23 MAY 2011 News 9

Banks miss small Nestle chair to

stay on board
firms loan target for six years
of Project Merlin

▲
FOOD MANUFACTURING
NESTLE’S chairman hopes to stay on

BANKING lending targets in a bid to improve

City split on so-called Cadbury law the board until 2017 and reiterated
that the food producer has until 2014
to decide on its stake in French cos-
▲

BY JENNY FORSYTH
THE UK’s five largest banks have failed
to meet a Project Merlin target for
making £76bn of credit available to
small and medium size businesses
(SMEs) this year, the Bank of England is
set to reveal today.
Preliminary figures showed that in
the first three months of the year, the
banks – RBS, Lloyds, Barclay, HSBC
and Santander – lent £16.8bn to small
businesses. That is a 12 per cent short-
fall on the quarterly target of £19bn.
But the Treasury said it is cheered
by overall business lending, which has
come closer to the Merlin benchmark
during the last three months, with the
five institutions lending around
£47.2bn compared with an expected
quarterly rate of £47.5bn.
The Merlin deal set out annual
transparency in the banking sector,
though the tallies from the latest
quarter are the first indication of how
the banks are living up to this ele-
ment of the Project Merlin commit-
ments.
The firms said in February they
were able to lend £190bn during the
year, £76bn of which was to go to
smaller businesses.
Yesterday a spokesman for the Bank
of England refused to comment on
the figures, saying the Bank’s only
role was providing a statistical service
for the government.
Bank chiefs will no doubt be on ten-
terhooks waiting for government
reaction to the finalised figures today.
Prime minister David Cameron has
already warned they could face a bar-
rage of new bank levies and taxes for
failing to keep credit flowing.
while Obama support stays strong
Almost as many City opinion formers
would back a “Cadbury law” making it
more difficult for foreign companies
to take over UK ones as oppose it.
According to the latest poll by
PoliticsHome and City A.M., 44.6 per
cent would back changes to current
rules, with 47.9 per cent saying they
would oppose them. A further 7.6 per
cent said they did not know.
The poll also showed that over 50
PoliticsHome.com
PoliticsHome.com
In association with
PoliticsHome.com
metics company L'Oreal, a paper
reported yesterday.
Peter Brabeck said in a weekend
per cent of respondents would vote newspaper interview he aimed to stay
for Obama, compared to 32.5 saying on the Nestle board until the statuto-
they would vote for a republican can- ry limit, which was 72 years old.
didate. Even among Tory voters "I could therefore stay on the board
Obama fared well, with 36.7 per cent until 2017, which is my wish," he said.
backing him compared to 43.4 The maker of Nescafe coffee, KitKat
against. chocolate bars and Maggi soup has
The City also voted overwhelmingly begun a push into the growth market
in favour of outsourcing public servic- of foods with health-benefit claims,
es, with 65.8 per cant in favour and and plans to invest 500m Swiss francs
just 30 per cent against. (£351m) in its new subsidiary in the
next decade.
Brabeck said he expected 10 per-
cent annual growth for the unit.
Asked whether the health science
push was designed to position Nestle
Apply to join today at for a full bid for L'Oreal, in which it
www.cityam.com/panel holds 30 per cent: “It is primarily
about the long-term direction.”

Betfred scrambles
to woo racing execs
LEISURE the major racecourse groups, an Horseracing Authority, the
▲

BY RICHARD PARTINGTON elected representative from the

HIGH street bookmaker Betfred has
launched a last-minute scramble to
win racing industry support for its
bid to buy the Tote, the state-
backed bookmaker.
The gaming firm has stepped up
its bid by offering to create an advi-
sory board for the Tote, with seats
for racing industry executives.
Betfred is seen as the straggler in
the race to buy the government-
owned turf accountant to a bid
from Sir Martin Broughton, the for-
mer Liverpool Football Club
Chairman.
The “Tote Development Board”
being wagered by the firm would
comprise of senior executives from
independent course and a senior
racing director from the Tote.
Betfred is offering the panel,
which would help to bring the
commercial future of Tote in line
with racing industry desires, in
order to allay concerns the book-
maker has the best interests of rac-
ing at heart.
Fears had been raised that the
betting firm was solely interested
in the Tote for its 517 shops and
portfolio of 840 premises.
The racing industry has already
come out in vocal support for Sir
Martin’s Sport Investments
Partners (SIP) bid.
Several heavyweight industry
groups, including the British
Racecourse Association and the
Horsemen’s Group, have pledged Musdt
to support his offer. en ly
31 Ju
“This new body gives racing a
direct voice at the table to influ-
ence the commercialisation and
development of the Tote and will
also enable Betfred to benefit from
the experience and knowledge of
those who run the racecourses,”
said Betfred chief financial officer
Barry Nightingale.
“It will be a tight forum for deci-
sion making and, consistent with
our overall strategy for the Tote
and for racing, it aligns common
interests,” he added.
A decision on the future of the
Tote is expected from the govern-
ment as early as this week.

STAKE SELECTIONS TIME & MEETING STAKE SELECTIONS TIME & MEETING

TOTE ADVISORY BOARD battered finances. STOCK MARKET FLOAT board of the company to
Seats for racecourse Sir Martin Broughton decide its future.
executives on a steering RACING CASH PLEDGE would float the Tote on
Areas include; Westminster, Camden, Southwark,
panel for the future £11m guaranteed to be the AIM market in order PRIVATE EQUITY City of London, Tower Hamlets and Islington.
commercial direction of ploughed back into the to fund his purchase and To allay concerns over
the Tote. racing industry in the the future of the busi- the difficulty of raising

INSTANT CASH DEAL

Betfred has the money
first year of Betfred’s
ownership and then a
minimum of £9m for the
ness.

BOARD SEATS
equity on the AIM mar-
ket, SIP has got backing
from private equity
Book yours today call 020 7510 1617
lined up and ready to
pay the government for
the Tote. The Treasury
next two years. The firm
is offering the cash for
the next seven years of
The public structure of
the company would
enable Sir Martin to
house Oakley Capital.

RACING CASH PLEDGE

Or text “London” to 60300 for a call back
could be keen on a quick the lease it would win offer racing industry £11m per year to racing
sale to fix the nation’s for the Tote. executives seats on the in perpetuity.

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 The Capitalist
10 EDITED BY CITYA.M. 23 MAY 2011
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist

RAINMAKING WON’T
STOP PLAY AT CITY’S
CHELSEA POWER SHOW
TONIGHT the worlds of high finance
and horticulture will collide at the
most popular fixture in the City year:
the Chelsea Flower Show charity gala.
BSkyB chief executive Jeremy
Darroch was spotted eyeing up gar-
den sheds at last year’s Chelsea pre-
view, while Topshop boss Sir Philip
Green – known in the City as “PG” – is
also a regular at the UK’s most high-
powered garden party.
“There will be a terrific turnout,”
said Robert Swannell, chairman of
M&S (below), ahead of his confirmed
appearance at this evening’s sold-out
gala near Sloane Square. “For me it
is always a particular pleasure as my
wife and I share a keen inter-
est in gardens.”
Swannell and his wife,
both trustees of the Kew
Foundation, will no doubt
make a beeline to the Kew
show garden. However,
other City names will gather
around the Royal Bank of
Canada’s New Wild
Garden and M&G
Investments’ M&G
Garden, billed as “a
modern take on the traditional
kitchen garden”.
But never mind the planting. Who
is actually invited to tonight’s garden
extravaganza, where 5,000 guests will
be served champagne and canapes
before 1,000 sit down to dinner in var-
ious corporate-hosted tents?
The Royal Horticulture Society
refused to give details of the guest
list, but it is a safe bet that the senior
executives of M&G Investments, the
lead sponsor of the gala and the
show, will have a strong presence.
So that’s M&G Investments’ CEO
Michael McLintock and its owner
Prudential’s group CEO Tidjane
Thiam accounted for. Moving on to
the bankers, The Capitalist hears
Lazards’ London chief executive
William Rucker is expected, as is
Marcus Agius, group chairman of
Barclays – apparently he and his wife
are both “great flower lovers”.
Simon Mackenzie-Smith,
investment banking
grandee at BoA
Merrill Lynch, is
taking a party,
while Alison
Last year’s gold medal-winning garden from Chelsea’s lead sponsor M&G Investments
Carnwath, chairman of Land
Securities, JP Morgan Cazenove chair-
man David Mayhew, Standard Life
chairman Gerry Grimstone, and
Lloyds Banking Group chairman Win
Bischoff are also attending.
Throw in M&S CEO Marc Bolland,
Tesco’s new chairman Sir Richard
Broadbent and David Wormsley, the
head of UK investment banking at
Citigroup who is advising on
Glencore’s £60bn IPO alongside
Morgan Stanley and Credit Suisse, and
you have a dynamite combination.
Which could become even more
explosive if Terra Firma boss Guy
Hands, Wormsley’s former friend
who is still reeling from his hum-
bling legal defeat by Citi over EMI,
decides to put in an appearance...
LOFTY AMBITION
FROM Chelsea gardens to gardening
leave. Some resting bankers play
golf between jobs, but Citi’s incom-
ing managing director of UK and
Ireland investment banking Basil
High-flier: Geoghegan at a Sherpa camp
Geoghegan spent his two-month
break after leaving Acision in March
climbing the world’s highest moun-
tain in aid of The Ireland Fund.
Geoghegan reached the summit of
Everest at 2.30am last Thursday and,
ever the banker, he organised a heli-
copter to whisk him away from the
summit to Kathmandu, before flying
home to Dublin to spend time with
his wife and four daughters before
starting at Citi on 4 June.
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 12 News CITYA.M. 23 MAY 2011

Coalition reform
Osborne eyes plans will fail to
strong deficit make work pay

cuts in 2011-12
WELFARE

▲
GOVERNMENT proposals to reform
the welfare system will fail to “make
work pay” for many parents, a think
tank report will claim today.
Despite the coalition’s pledge that
Chancellor George Osborne is reducing the deficit Picture: Micha Theiner/City A.M. people will be “better off for each hour
▲

UK ECONOMY
BY JULIAN HARRIS
CHANCELLOR George Osborne’s
deficit-curtailing efforts will come
into focus tomorrow with the release
of the government’s net borrowing
requirement for April.
cians treat the financial sector as a they work” under the new universal
giant piñata.” credit scheme, parents throughout the
Yet economists remain divided on
the optimum speed of the cuts, and
ECONOMISTS’ VIEWS: IS OSBORNE’S DEFICIT UK will face negligible incentives to
work, the Resolution Foundation said.
effect on the UK’s recovery.
“The plans for fiscal consolidation
REDUCTION PLAN ON TRACK? Interviews by Julian Harris A single parent on the minimum
wage would take home just £7.50 a
will inhibit economic growth but week more if they decided to work for
they will have had a limited effect on DAVID MILLER | CHEVIOT ASSET MANAGEMENT two days a week, instead of one day.

“
The figures will shed light on the the data released so far,” said Simon “Further increases in childcare costs
start of Osborne’s first full fiscal year Kirby of the National Institute of risk driving parents – especially moth-

of major cuts. The deficit could be
slashed to £115.6bn by the end of
2011-12, the Institute for Fiscal
Studies has estimated.
The government deficit was
reduced to £141.1bn in the fiscal year
Economic and Business Research
(NIESR).
“Removing most of the structural
budget deficit over the course of this
parliament is essential, but only
when the economy could support it,”
”
Reining back the deficit had to happen and is being managed reason- ers -- on low-to-middle incomes out of
ably well. Corporate sector tax receipts may surprise to the upside. full time work,” said Gavin Kelly of the
Resolution Foundation, which co-
authored the report with campaign-
SIMON KIRBY | NIESR ing charity Gingerbread. “Doing more
than part-time work just wouldn’t

“
to March, from £156.4bn in Labour’s Kirby told City A.M. make you better off,” Kelly said.
final year in power. “We certainly needed a credible Parents working fewer than 16

“The implementation of a large
scale fiscal consolidation pro-
gramme is not optional,” said
Nomura’s UK economist Philip Rush.
“Structural damage to the public
plan, but there is no evidence the tax
increases and spending cuts had to
start so early.”
The deficit is hoped to fall to 7.9
per cent of GDP in this fiscal year,
”
Unlike the Office for Budget Responsibility, we don’t expect Osborne to
meet the primary goal of a cyclically adjusted budget balance in 2015-16. hours a week will be subsidised for
childcare costs under the proposals.
“But as the overall budget for child-
care support within the credit is fixed,
PHILIP RUSH | NOMURA other working parents will lose out,”

“
finances left them on an unsustain- from its recent height of 11.1 per the report said.
able trajectory. The public sector cent in 2009-10. Iain Duncan Smith, the secretary of

gorged on receipts related to the
credit boom that are not coming
back, regardless of how long politi-
A Daimler Brand
”
Nonetheless, the government’s We expect April’s public finances to be in slightly better shape than in state for work and pensions, will hold
net debt is expected to surpass 70 per 2010, with borrowing of £6.7bn excluding financial interventions. consultations over the Welfare Reform
cent of GDP in 2013-14. Bill this week.

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CITYA.M. 23 MAY 2011 Economics 13

Squeeze of UK household
finances starts to relax
up by half a point (to 36) in May, while which compiles the data.
▲

UK ECONOMY
BY JULIAN HARRIS
THE deterioration of household
finances appears to be slowing, accord-
ing to a survey released by Markit
today.
While Britons remain pessimistic
about their finances, the outlook this
month was the least negative since
January.
The household finance index edged
the index measuring the financial out-
look for the coming year rose by 2.6
points (also to 36). Nonetheless, figures
below 50 still indicate a decline in
respondents’ circumstances.
“May’s survey showed a small but
encouraging rebound in households’
financial outlook, following a record
low during April and declines
throughout the first quarter of 2011,”
commented Tim Moore of Markit,
Workers reported a turnaround in
job security, the index improving to
42, from 39.4 in April. In the private
sector, the index jumped to 43.7, its
highest since January.
Inflation perceptions slowed this
month, after hitting an all time record
high in April. Yet over four in five (81
per cent) still perceived a rise in prices,
while only two per cent reported a
reduction. Rising prices and sluggish wage growth have squeezed households Picture: GETTY

NEWS | IN BRIEF
UK’s factory wages edge upwards
Wage settlements have begun to creep
upwards in the manufacturing sector, a
survey reveals today. Settlements rose by
an average of 2.5 per cent in the three
months to the end of April -- the highest
since January 2009 and up from 2.4 per
cent in the three months to March.
Business morale starts to repair
Business confidence has shot up this quar- scratch, the IGD shopper track has shown.
ter following four straight quarters of
decline, according to a survey released
today. The ICAEW and Grant Thornton UK
business confidence monitor recorded
improvements in all 14 financial perform-
ance indicators.
Cook more to pare income crunch
Shoppers are looking to beat the squeeze
on incomes by cooking more food from
CITYA.M. 23 MAY 2011
Chinese expansion healthy for City of London
CITY COMMENT
STUART FRASER
U
NLESS witnessed first-hand, it is
difficult to grasp the sheer
scale of economic growth in
China or the level of interna-
tional investment that has continued
unabated despite the recent financial
crisis.
Rio Tinto pay sparks anger
▲
MINING
BY HARRY BANKS
RIO TINTO has failed to settle
investor anger over its pay packages
for directors, with one top-five share-
holder pledging to fight on to over-
haul remuneration at the mining
giant.
Around 22 per cent of UK share-
holders refused to back Rio’s remu-
neration package at its annual
meeting in April, though the figures
As a member of the Shanghai
International Advisory Council –
whose annual meeting I attended last
week – I have been left in no doubt
that China is determined to create a
financial services industry that
reflects its global standing.
On the surface, it may seem count-
er-intuitive that the policy chairman
at the City of London is advising a
rival financial centre on how to
improve its business offer.
But whilst we are all competing for
business, we are not dealing with an
either/or situation – firms want to
have a significant presence in London
and New York and in the Asian mar-
kets.
China’s inevitable growth will help
were not made public until after
another investor meeting in
Australia several weeks later.
In Australia, 38 per cent of
investors voted down the director
pay motion.
Standard Life, Rio Tinto’s fifth
largest shareholder, has called on
the board to bring forward sweeping
changes to the pay structure, after
the firm merely pledged to examine
its policies over the next two years.
“We should like to see a full review
sustain the expansion of the global
financial and professional services
industries – ultimately creating a big-
ger pie for us all.
It is thus in all our interests to help
China develop its financial services
industry – by fostering closer coopera-
tion, we can help to ensure the City’s
position as a leading global financial
centre for years to come.
It is also in all of our interests to
ensure that major financial centres
are underpinned by a commitment to
openness, predictability and stability.
In recent years, Chinese policy-
makers have demonstrated a keen
understanding of the important role
infrastructure – be it transport, tech-
nology or office space – plays in creat-
of remuneration policies conducted
over the coming year, with appropri-
ate recommendations being made to
shareholders at next year’s AGM,”
said Guy Jubb, head of governance
and stewardship at Standard Life
Investments.
Governance body PIRC said earlier
in the month that chief executive
Tom Albanese received a 31.4 per
cent salary increase from the previ-
ous year, while shareholders saw a
return of minus 34.7 per cent.
ing a world-leading financial centre
and a huge amount of money has
been spent in an attempt to attract
leading firms to mainland China.
But significant barriers to progress
remain. One of the major concerns is
that until the renminbi has been
fully internationalised, the Chinese
financial services industry will never
be able to fulfil its potential.
Although at present this remains a
huge and complex long-term under-
taking, London could have a vital role
to play. With one third of global forex
trading taking place in the City – a
greater share than any other finan-
cial centre – London is a natural
home for any such activity and will be
at the forefront of any future market
Spanish in mass protest at high
unemployment and austerity drive
▲
WORLD
TENS of thousands of people filled
Madrid’s Puerta del Sol during the
weekend to protest against high
unemployment and austerity meas-
ures, defying a ban on demonstra-
tions on the eve of local elections.
Protesters of all ages including fam-
ilies with small children and pension-
ers joined hundreds of young
News 15
growth.
Many international firms still feel
they face huge constraints when
doing business in China, not least
with regards to a lack of consistency
and transparency when it comes to
bureaucracy, regulation, licensing
and competition. A lack of personal
freedom also makes it difficult to
recruit top employees to work in
these markets.
However, there is no doubt that
China will only become more impor-
tant as a place to do business and this
is something to be encouraged. A
strong China will only serve to
improve the industry as a whole.
Stuart Fraser is policy chairman of the
City of London Corporation
Spaniards, who have been camping
out in Madrid for a week, in peaceful
protest against the government’s han-
dling of the economic crisis.
The number of demonstrators
swelled to around 30,000 people on
Saturday night. Protesters also gath-
ered in Barcelona, Valencia, Seville,
Bilbao and other cities urging people
not to vote for either of Spain’s two
main parties.
 16 News
Rival bidder for TMX says
LSE bid bad for shareholders
▲
FINANCIAL SERVICES
BY STEVE DINNEEN
THE banker leading a rival bid for
Toronto Stock Exchange owner TMX
Group has claimed the London Stock
Exchange offer does not offer share-
holders value.
In an interview with the Times Luc
Bertrand, vice-chairman of Quebec-
based National Bank of Canada, said:
“As a shareholder, I would say it’s not
a very good premium they are offer-
ing.”
He also denied that his Maple
Group consortium is motivated by
the desire to keep the firm in
Canadian hands. He said that if suc-
cessful the bid could lead to further
acquisitions, although he would not
confirm whether the LSE could itself
be a potential target.
He said: “A lot of people have said,
‘aren’t you closing yourself into the
Canadian space’. In fact, we are doing
the opposite. We want to create a
stronger company and participate
fully in the international theatre.”
The London Stock Exchange has
tabled a C$3.2bn (£2bn) all-share
merger deal. The opposing Maple
group bid consists of cash and shares
valued at C$3.6bn.
TMX said it is pressing ahead with
its merger with the London Stock
Exchange, rejecting Maple’s proposals.
Virgin Money chief Jayne-Anne Gadhia is building a war chest to buy bank branches.
Virgin Money
seeks £2bn to
buy branches
▲
RETAIL BANKING
BY RICHARD PARTINGTON
FLEDGLING bank Virgin Money has
kicked off a £2bn fundraising exercise
to stockpile the war chest it requires
to buy the branches being put up for
sale by Lloyds and Northern Rock.
Sir Richard Branson’s financial
services firm is in talks with potential
investors over the provision of
finance for a bid.
Both Lloyds and Northern Rock
will be selling batches of branches to
bidders over the coming year.
Led by Jayne-Anne Gadhia, Virgin
Money has been in talks with private
equity firms in the United States and
Europe. It is also said to be in talks
with wealthy individuals over possi-
ble investment opportunities.
Investment bank Greenhill has
been appointed to oversee the
process.
Virgin Money has had a long-stated
ambition to expand in the UK, and
has been linked as a potential bidder
for the branches of Lloyds and
Northern Rock that are to be sold.
American investor Wilbur Ross has
already given financial backing to
Sarkozy could be controversial
figure at the e-G8 event in Paris
▲
TECHNOLOGY
BY STEVE DINNEEN
THE internet world’s titans will alight
in Paris next week for a two-day
forum hosted by French President
Nicolas Sarkozy.
While the event is aimed at pro-
moting the European digital econo-
my, it could also see fierce debate over
the perceived draconian laws in the
EU.
The US, with its flourishing inter-
net hub in Silicon Valley, is the envy
of many entrepreneurs in Europe
who feel hampered by a lack of angel
investors, unhelpful regulation in
areas like stock options, and a lack of
CITYA.M. 23 MAY 2011
Virgin Money, with a £100m cash
injection and a pledge to invest a fur-
ther £500m.
The rest of the cash to fuel the
firm’s acquisition war chest would
come from the fresh round of talks
with potential investors.
Management at Virgin Money are
said to be keen on securing strong
enough tier one capital before mak-
ing an approach for the branches.
Established banks have scrambled
to improve their financial buffers as
regulators clamp down on the stabili-
ty of lenders.
As many as 600 branches will be
sold by Lloyds by the end of this year
for as much as £3bn, whilst a sale
decision on Northern Rock’s 70
branches could come as early as next
month.
A rival bid to Virgin Money could
come from City grandee Lord
Levene’s NBNK, which is said to have
appointed UBS to advise it on an
approach.
Other bids could come in from US
private equity house JC Flowers and
National Australia Bank, which
already owns the Clydesdale and
Yorkshire banks.
like-minded people.
Sarkozy himself is seen by many in
the industry as a barrier to digital
growth. He is well known for his anti-
piracy stance and his proposal to levy
a tax on global internet companies.
He is responsible for passing a law
that calls for internet access to be cut
off to people caught pirating copy-
righted works three times.
However, his tone may be tempered
by the powerful role the web has
since played in the tumultuous
changes sweeping the Middle East – a
region with which France has a com-
plex relationship because of its colo-
nial past.
SEE: CNBC COLUMN P19
CITYA.M. 23 MAY 2011 News 17

UBS awaits fate of

new headquarters
PROPERTY department for culture, media and architect, Peter Foggo”.
▲

BY MARION DAKERS
THE DEVELOPERS of the new UBS
headquarters on the Broadgate
estate are set to find out as soon as
this week whether the existing
office blocks will be recommended
for listed status, stalling progress
on the £340m project.
English Heritage’s advisory
board will meet on Wednesday to
discuss the group’s recommenda-
tions, which will inform the gov-
ernment’s decision on whether to
protect 4 and 6 Broadgate.
UBS and site co-owners British
Land and Blackstone won planning
permission for a new 700,000
square foot office block in April,
but this could be superseded if the
sport decides to protect the 1980s
estate.
Buildings normally become eligi-
ble for listed status 30 years after
construction, but can be protected
if they are under threat or are of
outstanding quality. The Broadgate
estate was first developed in 1985,
short of the 30-year benchmark.
British Land called the moves
towards listing “a terrible signal”
to businesses at the weekend.
City of London policy chairman
Stuart Fraser wrote last month in
City A.M. that it would be a mistake
to list the structures, and that the
plans for the new building “aptly
demonstrate the adaptability of
the original Broadgate develop-
ment concept and the vision of its
But others, including original
Broadgate developer Sir Stuart
Lipton and the Twentieth Century
Society have called for the entire
estate to be protected from demoli-
tion.
English Heritage said in a state-
ment: “We have no desire to fos-
silise buildings and we refute any
suggestion that listing does this – Sculptures, rare graphics,
in planning, there is always a bal-
ance to be struck between creating original collages
‘new and big’ and recognising the
value of the existing.”
The properties at 4 and 6
Broadgate are largely vacant, with
agent DTZ assigned to find short-
term tenants until demolition
starts later this year – pending the
English Heritage report.
SPONSORED BY

Property guru is back in business Moor House Building

Opening April 1st
▲

PROPERTY chairman of estate agent is privately funded.

THE FOUNDER of property web-
site Rightmove has come out of
retirement, setting up a con-
veyancing firm to try and cash in
on the complexities of the UK real
estate market.
Harry Hill has launched In-
Deed, an online conveyancing
service that lets house-buyers
track progress of their purchase
through mobile phones and a
website.
Hill, who stepped down as
Countrywide in 2009, said yester-
day: “Feudal methods of property
transfer still apply unfortunately,
and in the last five years
increased price competition to
secure a shrinking market has
driven service standards in con-
veyancing that are unacceptable
in many cases.”
Hill is joined by co-founder
Peter Gordon, a long-term
investor who has worked at pri-
vate equity group 3i for nearly
two decades. The In-Deed venture
Philip Williamson, the former
chief executive of Nationwide, has 120 London Wall, City of London, EC2Y 5ET
come on board as a non-executive
director. Monday - Friday 10:00 am - 6:00 pm
The firm claims that more than
one in four homebuyers find con- Saturday 11:00 am - 5:00 pm
veyancing confusing, while 30 per
cent view the service as a rip-off.
A survey commissioned by the T. +44 (0) 778 907 6340 | T. +44 (0) 207 614 0600
company found that half of all
purchasers have had to chase up info@modernmastersgallery.com
their property lawyers, wasting www.modernmastersgallery.com
an average of 10 hours over the
lifespan of the transaction.

M&S set to outline NEWS | IN BRIEF

Firms set up housebuilder loans

plans for growth

Specialist property financiers Pluto
Capital and Mountgrande Investment
Management have set up a £50m fund
to finance housing projects in London
and the south-east, the firms said yes-

alongside profit rise

terday. Pluto Finance, the fund manager,
expects to provide mezzanine loans over
the next three years in a bid to bridge
the funding gap in residential projects
left by larger lenders. Pluto partner
Chris Philp said the fund aims to attract
more investors and extend its reach “in
due course”.
RETAIL group Inditex to lead its push over-
▲

BY MARION DAKERS
HIGH STREET stalwart Marks &
Spencer is expected to post a 12 per
cent rise in full-year profit tomorrow,
as the retailer outlines plans for
growth overseas and online.
M&S is likely to post a £710m pre-
tax profit, according to consensus esti-
mates, which is set to lead to a rise in
its dividend to 16.5p, up from 15p last
year.
The retailer will unveil how much
the warm April weather boosted sales,
following peer Next’s bullish update
earlier this month, and whether the
rising global price of cotton will lead
to price hikes instore.
A year into his role as chief execu-
tive, Marc Bolland is also expected to
announce further plans for expansion
in his debut full-year results.
He has already poached Laura
Wade-Gery from supermarket group
Tesco to head M&S’s internet business,
and Jan Heere from Spanish fashion
seas, as he seeks to double sales in
both divisions to about £1bn by 2013-
14.
Head of non-food, Kate Bostock,
insisted in an interview published yes-
terday that the firm is stable at the
top, despite reports that several inter-
nal candidates battled it out to replace
Sir Stuart Rose as chief executive.
“I didn’t honestly want to do that
job. I think that role in M&S is not for
me. And I love the job I’ve got,”
Bostock told the Sunday Telegraph.
High-end retailer Burberry, due to
report its own full-year results on
Thursday, is expected to report a 40
per cent surge in profit as emerging
markets continue to snap up the
designer’s clothing lines.
Analysts expect the firm to report
an underlying profit of £300m, with
all eyes on Burberry’s outlook for
Japan, after disruption caused by
March’s earthquake caused shares in
the firm to sink nine per cent in a
week.
TNK-BP to pay dividend: report
Russian oil venture, TNK-BP, is set to
spend almost all of its 2010 profit in the
form of a dividend, business daily
Vedomosti said, citing two sources at
TNK-BP. The newspaper said the board
of TNK-BP Holding, the traded unit of
TNK-BP, recommended paying 3.85 (8p)
rubles per share on fourth-quarter divi-
dend, or 59.47bn rubles total. The 2010
dividend would account for 97 per cent
of net profit, according to Russian
Accounting Standards.
Pirates break box office record
The latest Pirates of the Caribbean film
made $346.4m (£213.2m) in its global
box office debut this weekend, falling
short of forecasts but still making it the
biggest opening weekend this year.
Disney said “Pirates of the Caribbean: On
Stranger Tides” set a record as the high-
est international movie opening of all
time, with $256.3m coming from out-
side the US. The record was held by
M&S chief exec Marc Bolland is expected to set out his expansion plans tomorrow “Harry Potter and the Half Blood Prince”.
 18 Analysis CITYA.M. 23 MAY 2011

Why company chairmen face an

increasing level of investor scrutiny
Investors deserted For
Prudential chairman institutional
Harvey McGrath in investors,
its annual vote. Alison targeting the
Lock discovers why chairman in a
such protest matters. personal
THE 2011 AGM season is already delivering attack is
some stinging blows for company boards.
Recent meetings at the UK’s biggest taken
companies have seen shareholder ire
directed at remuneration reports and occa- immensely
sionally directors. But chairmen have also
taken flak for their company’s direction seriously
and performance over the past year.
Prudential shareholders rapped Harvey
McGrath last week for his stewardship of
its failed $35.5bn (£21.9bn) bid to buy Asian
insurer AIA last year, with 27 per cent fail-
ing to support his re-election.
BP chair Carl-Henric Svanberg also
received a seven per cent protest vote
against his next term in office.
While the Pru played down the shock was questioning the leadership of the Clockwise from left: opposition,” he said, adding that a chair again and probably take soundings from
result – McGrath said he believed he had a board,” he said. “The vote reflected con- Harvey McGrath of would retire once it became clear investors investors to see if anger is still there. If
“pretty good mandate” to continue – it is cerns over the leadership of the board in Prudential; Adrian would not support his re-election. there is, there is a good chance he will
the largest such rejection in a FTSE 100 the context of how an extremely impor- Bellamy of Reckitt The alternative is for company and stand down,” he said.
firm this year, and third-biggest revolt tant decision was handled with sharehold- Benckiser; Sir Stuart chairman to use the months after a vote to Investors are clear that less than 95 per
against a chair in three years (see table). ers. It would have transformed the Rose, formerly of rebuild bridges with investors. cent support in an AGM vote should make
Why does this matter? For shareholders, company in an extremely profound way Marks & Spencer; The Pru may feel defensive for a while a chairman review his role. As the institu-
particularly long-standing institutional and we were concerned about the repre- Willy Strothotte, for- yet though, one institutional investor said. tional investor said of McGrath: “It means
investors, targeting the chairman in a per- sentation to shareholders of how regula- merly of Xstrata “In a couple of months they will come out he has a mandate – but he has work to do.”
sonal attack is taken immensely seriously. tors and other shareholders viewed this.”
“It is a rare occurrence for us to vote More than 20 per cent opposition is rare MORE THAN 20 PER CENT DISSENT TO THE RE-ELECTION OF FTSE 100 CHAIRMEN
against a chairman. It is a signal of some but often repeats itself. Without a majority
depth of concern about either the compa- revolt a chairman is not bound to step
ny leadership or the board – and it is some- down – so some have shrugged off dissent Company Name AGM year Total Dissent % Against % Abstain
thing we certainly don’t do lightly,” one for several years. Xstrata Willy Strothotte 2010 29% 23% 6%
fund manager told City A.M. Reckitt Benckiser chairman Adrian Xstrata Willy Strothotte 2008 29% 11% 17%
A big “no” vote directed at a chairman Bellamy remains in post despite sizeable
can mean several things, though. The AGM votes against him in 2008, 2009 and 2010 Prudential Harvey McGrath 2011 27% 21% 6%
is shareholders’ single annual opportunity at the vast salaries paid to former chief Reckitt Benckiser Adrian Bellamy 2009 26% 6% 20%
to formally protest at decisions made executive Bart Brecht as well as the board.
throughout that year. Opposition to The most-opposed chairman in recent SEGRO (Slough Estates) Nigel Rich 2007 24% 8% 16%
Svanberg, for instance, was viewed as a history is former Xstrata chair Willy Reckitt Benckiser Adrian Bellamy 2008 24% 9% 15%
protest against BP’s Gulf of Mexico spill. Strothotte, who faced protest votes from Marks & Spencer Sir Stuart Rose 2009 22% 7% 14%
But it can also be a judgement on a 2005 to 2010 due to outrage at executive
chairman’s future. And while the Pru was pay and extras. He stepped down this year Marks & Spencer Sir Stuart Rose 2008 22% 5% 17%
keen to stress opposition to McGrath was rather than face re-election again. Reckitt Benckiser Adrian Bellamy 2010 21% 8% 14%
the former, one shareholder told City A.M. One institutional investor said this was
he believed it meant more. not unusual: “You would never see when a Wolseley John Whybrow 2008 21% 2% 19%
“It was more than just a protest vote, it chairman goes because of shareholder Source: Manifest

%$
&7&3:0/&
8&-$0.&
%$

Investec Derby Festival – 3rd & 4th June 2011 The Investec Derby Festival is one of the most iconic events of the sporting
and social calendars. With an anticipated 100,000 on Investec Derby Day
Featuring the world’s greatest flat race alone, the Festival is one of the most popular sporting events in Britain. And
for good reason. The Festival attracts a diverse range of people, creating
CITYA.M. 23 MAY 2011 News 19

Sarkozy could learn from Internet billionaires

what with all those red carpets to
shampoo in Deauville and the baby
stuff he and Carla need to buy, but
such is the buzz around the sector
he’s found the time to host a forum
on how the Internet can accelerate
economic growth.
It is certainly the case that social
CNBC COMMENT networking is coming of age, as we
BECCY MEEHAN saw last week. The LinkedIn crew
made a tonne of dough in a stellar
IPO. And Lady Gaga knocked Oprah
moment of desperation.com to get
the @kids on side.
At the Palais des Tuileries this
week, as Producer Rose and I munch
our way through a few dozen pains
au chocolat on expenses, attention
will surely turn to the biggie in social
networking, Facebook.
Social media bazillionaire Mark
Zuckerberg will be there with his
COO Sheryl Sandberg, who last week
said an IPO for the business is now
Plus, money is pouring into
Internet start-ups again. Not as much
as a decade ago, but recent data from
Thomson Reuters Deals Intelligence
shows more than $5bn (£3.1bn) of
venture capital investment flowed
into young web companies globally in
the first four months of the year.
But if you’re looking for reasons to
be optimistic about the outlook for
tech investors cast your eye a little fur-
ther down the attendance list… Eric
There is a rather more shadowy
side to this event, though. Sarkozy is
known for his espousal of the so-
called “civilised internet” and his crit-
ics believe he’s the out and out enemy
of the free, open philosophy of the
digital community. They believe he’s
using the event to finagle high-profile
support for his philosophy of more
central control and censorship of the
web.
In the meantime, Sarko and his

N
ICOLAS Sarkozy has invited the
great and good of the digital
industry to pop round to Paris
for a few days this week to
chew the fat before the G8 summit.
And I’m going along for the ride.
You think Sarko would be busy,
off the top spot in Forbes’ Most
Powerful Celebs list, proving 10m
Twitter followers, in some circles at
least, beats a boring old print and
telly media empire.
And so to the e-G8… A name that
can only have dreamed up in an i-
inevitable.
The question is, at what price? And
is this another bubble?
Plenty of people think so, citing the
doubling of LinkedIn’s shares in the
first day of trade despite the lack of
profits from the company.
Schmidt will represent Google and newly-minted social networking
Jeff Bezos from Amazon is popping chums have to figure out how to save
along too. the global economy in time to report
And goodness knows, the back to the G8 on Thursday. That
economies of several of the G8 coun- should keep them busy.
tries need all the help they can get in Beccy Meehan is a presenter at CNBC.
the economic growth department. Follow her on Twitter @BeccyMeehan

BEST OF THE BROKERS

Vedanta aims
NEWS | IN BRIEF
ANALYSIS l Aggreko AGGREKO
1,900 p Goldman Sachs rates the power rental
Daimler rules out EADS sale
1,753.00 Daimler has ruled out the sale of a
20 May company a “buy” and has added the firm to minority stake in aerospace group EADS

to resurrect 1,700

1,500
its conviction buy list with a raised target
price of 2482p. The broker thinks now is
the key time to invest as a result of the
favourable pricing environment caused by
power shortages in Japan, bolstering the
to German suppliers and sees a role
instead for Germany in the deal, the car-
maker’s finance chief told a German
newspaper. Bodo Uebber, who is also
chairman of EADS, poured cold water
on speculation that a group of suppliers

Konkola float 1,300

28 Feb 18 Mar

ANALYSIS l Booker
75 p
7 Apr 3 May

69.96
20 May
firm’s already strong position in a sector
with high barriers to entry.

BOOKER
JP Morgan rates the food wholesaler “over-
weight” and has raised its target price by
such as MTU or Diehl could get a 7.5 per
cent stake for which Daimler seeks a
buyer.

Bargain bid for Barnes & Noble

Cable TV pioneer John Malone likes a
bargain, and his $17 (£10.47) a share bid
MINING
▲

BY MARION DAKERS
INDIAN-FOCUSED miner Vedanta is
looking to revive its float plans for
copper miner Konkola in the coming
months, after shelving the IPO in
November due to market volatility.
Vedanta, which holds a 79.4 per
cent stake in Konkola, aims to time
the float to cash in on the commodi-
ties boom while steering clear of lin-
gering market turbulence that has
stalled several IPOs so far this year.
Vedanta said in its recent results
that it would examine a listing of
Konkola, a Zambian copper-mining
operation, some time this year.
Vedanta pulled the plug on a float
in November after only two days of
marketing, but it is understood that
the Zambian government, which
owns the rest of the firm, remains
keen to tap the London markets.
If successful, Konkola will be
Zambia’s first London-listed firm –
though Vedanta is expected to hold
on to a majority stake.
Liberum Capital valued Vedanta’s
stake in Konkola at $5.7bn (£3.5bn) at
the time of the previous listing
attempt in November. Since then, the
price of copper has yo-yoed from
around $8,500 a tonne to hit a peak of
over $10,000 in January. Copper for a
cash buyer closed at $9,006 a tonne
on the London Metal Exchange on
Friday.
JP Morgan and Goldman Sachs
have been advising Vedanta and
Konkola on the float.
Vedanta, led by Anil Agarwal, is cur-
rently awaiting government approval
for its purchase of a majority stake in
Cairn India for up to $9.6bn, having
extended the share purchase deadline
once more and announced a bond
issue to fund the deal on Friday.
12p to 71p. The broker thinks the firm is
65
well placed to outperform, despite a choppy
UK economy. Booker’s product mix contin-
ues to shift favourably alongside consumer
55 spending habits, and JPM thinks it can con-
tinue delivering growth like the 52 per cent
28 Feb 18 Mar 7 Apr 3 May
rise in fresh produce seen last year.
ANALYSIS l Ryanair RYANAIR
3.7 3.58 Commerzbank rates the airline “hold” and
€ 20 May
has a target price of 400 cents (349p). The
3.5
broker expects the airline to weather rising
fuel costs, thanks to its 90 per cent fuel
hedge, and predicts solid growth. It pre-
3.3 dicts a net profit of €386m when Ryanair
reports full-year figures today, and will be
looking for comments on longer-term
28 Feb 18 Mar 7 Apr 3 May development of unit costs.
To appear in Best of the Brokers email your research to notes@cityam.com
for Barnes & Noble is already being
slammed for undervaluing the largest
US bookstore chain. Shares of Barnes &
Noble jumped about 30 per cent to close
at $18.33 on Friday as Wall Street ana-
lysts argued the company was worth
more, pointing to the growing success of
the bookseller’s Nook e-reader as an
opportunity to be exploited by Malone's
Liberty Media.
Shell to keep up deep-water drill
Royal Dutch Shell sees deep-water oil
drilling continuing in the future and as of
next year will produce more gas than oil,
its chief executive was quoted as saying
yesterday. Asked how high the price of
oil needed to be for Shell to profit from
its investment of $30bn (£18bn) in
2011, Peter Voser said: “If the price of
oil is between $50 and $90 a barrel, the
investments are worth it.” Following the
oil spill in the Gulf of Mexico there have
been calls to stop deep-water oil drilling.

an exhilarating carnival atmosphere. This year’s Investec Derby Festival will be no exception. The two–day Festival
starts with Investec Ladies’ Day on Friday 3rd June, followed by Investec Derby Day on Saturday 4th June.
Hospitality packages are available. Book ahead and you can be there for the whole show.
Book now: 0844 579 3004 | epsomdowns.co.uk
20 News
CITY MOVES | WHO’S SWITCHING JOBS
AMEC
The international engineering and proj-
ect management group has appointed
Deloitte’s John Connolly as its new chair-
man, to succeed Jock Green-Armytage.
Connelly will retire from his current role
as chief executive of Deloitte UK and
global chairman of Deloitte Touche
Tohamatsu on 31 May and will join the
Amex board on 1 June. Connelly is also a
member of a number of advisory bodies,
including the International Business
Advisory Councils for London and for
Rome, and the CBI Advisory Board.
To appear in CITYMOVES please email your career
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
updates and pictures to citymoves@cityam.com
Edited by Harriet Dennys
Lloyds Banking Group
Lloyds Bank Corporate Markets has
promoted Simon Dixon to director in
its Acquisition Finance team in Leeds.
Dixon has worked in Lloyds’ Acquisition
Finance team since 2006.
Chadbourne & Park
Martin Thomas and Dearbhla Quigley
will join the law firm’s London office as
partners, effective 1 June, and Magnus
Rodrigues has joined as an internation-
al partner. Thomas and Quigley were
previously partners at Hunton &
Williams, while Rodrigues was a coun-
sel at Clifford Chance in Singapore.
in association with
Citisoft
The investment management consult-
ing firm has recruited Steve Young as
head of business development and Neil
Craddock as chief operating officer of
Europe. Young previously built up
Rhyme Systems, following its MBO
from Misys, and Craddock was a princi-
pal consultant and head of Citisoft’s
wealth management practice.
Sovereign Capital
The private equity firm has appointed
Manish Miglani to its investment team
to work across the Direct Origination
and Deal Execution teams. Previously,
Blue chips likely to
dip over Greek debt
MARTIN ON
THEMARKETS
MARTIN SLANEY
A
cautious mood is set to pre-
vail in the markets this
morning, with anxiety over
the on-going Greece debt cri-
sis and crucial upcoming economic
data likely to dominate traders’ mind-
sets.
In out-of-hours trading, GFT is fore-
casting the UK index to open down 16
points from last week’s close, at
around 5,932. The German DAX is
quoted to open down 22 points at
7,244 and the French CAC is called
down 15 points at 3,975.
The gravity of the problems facing
Greece were underlined at the week-
end by comments from Jean-Claude
Juncker, prime minister of
Luxembourg and head of the Euro
Group of Finance Ministers, saying
that a large-scale privatisation of state
WALL STREET WEEK AHEAD
igns of a Wall Street sell-off are
S all over the place, but US stocks
might well survive another
week relatively unscathed if
investors keep betting on sectors less
vulnerable to an economic downturn.
Pressure for a correction in the
stock market has been building up in
the past few weeks as the euro and oil
prices fell in tandem, knocking down
shares of energy companies and dol-
lar-sensitive multinationals.
Still, investors have averted a broad
sell-off by diving into shares of compa-
nies that are less vulnerable to the
economic cycle, including well-
known defensive sectors such as utili-
ties and household products, but also
large-cap companies with steady earn-
ings performance.
That strategy may hold the market
CITYA.M. 23 MAY 2011
Manish worked at Terra Firma Capital
Partners and Aureos Capital.
Bluefin
Bluefin Corporate Consulting has
appointed Robert Mitchell as client
relationship manager. Mitchell joins
from Mercer, where he was a client
service adviser.
Pinsent Masons
The law firm has appointed partner
Carolyn Saunders as the new head of
its London Pensions Group. Saunders
joined the firm in September 2010
from Taylor Wessing.
+ 44 (0) 207 092 0053
morganmckinley.com
assets should be considered.
A major concern for stock markets
with the mounting prospect of
Greece being forced to restructure its
debt, is the fear of contagion, and
with credit rating agency Standard
and Poors issuing a downgrade of its
forecast for Italy, the Eurozone’s
third-largest economy, to negative, we
can expect more of the same this
week.
Debt concerns are also in play in
the US, with government debt there
hitting its legal limit on borrowing.
Stocks in the Dow racked up a third
straight week of losses.
Investors are also likely to be hesi-
tant ahead of an array of key econom-
ic data due out this week, including
GDP figues – the main measure of
economic activity and growth – from
the UK and US, as well as the German
IFO index, a leading indicator of busi-
ness expectations and economic con-
ditions, which is expected to trend
lower.
The US first quarter GDP number
will be the second estimate released,
and an upwards revision of from 1.8
per cent to 2.1 per cent is forecast.
Martin Slaney is director of global deal-
ing operations for GFT.
afloat for a little longer. But with the
end of the Federal Reserve’s easy
money policies just around the cor-
ner, investors are becoming more sen-
sitive to risk in general.
“There is good reason for a pause,
there is good reason to be conserva-
tive in here, and there is good reason
to raise some cash ahead of a summer
correction and a better buying oppor-
tunity,” said Richard Ross, global tech-
nical strategist with Auerbach
Grayson in New York.
The sharp sell-off in commodities
markets earlier this month was seen
by many as the first warning sign of a
coming market correction.
Next month’s end of the Fed’s
quantitative easing is expected to
knock down the value of stocks, com-
modities and the euro.
 Wealth Management
THE TIPSTER
UP AND AWAY
WITH CHEAP
AEROPLANES
N
O FRILLS airline Ryanair has
seen its share price on the up
since March, and with oil prices
falling, the stock is finding fur-
ther support. It is due to report fig-
ures today and the expectations are
that passenger numbers have
increased. Capital Spreads quotes
3.54p-3.58p.
Optimism has increased about
tomorrow's first quarter Marks and
Spencer trading update, after last
week’s better than expected UK retail
sales figures, which could well sur-
prise to the upside due to warm April
weather and the extended Easter
break. CMC Markets offers a spread
of 401.21p-402.21p.
The news of recovery in the
London letting market and early pre-
lets has helped lift the share price of
Great Portland Estates by around
17 per cent this year. But that hasn’t
stopped short sellers from building
positions against it, with the propor-
tion of the company’s shares on loan
more than doubling from 3 to 6.5 per
cent since December. Spread Co
offers a spread of 419.5p-420.6p.
BP managed to finish last week on
a brighter note with a broker
upgrade and news that it recovered
$1.1bn from the Japanese partner
involved in the ill-fated Gulf of Mexico
drilling project. Even if this is a drop
in the ocean against a total claim
estimated at $41bn, analysts seem
supportive of the stock with bullish
target prices in play. Even the seem-
ingly imminent failure of the Rosneft
deal is being perceived as a blessing
in disguise. Current IG Index price is
465.5p-466.5p.
The hotly awaited IPO of Glencore
International launched spectacular-
ly last week with the first day’s vol-
ume of business being more than ten
times the volume of the second most
traded equity in the FTSE 100. On
Tuesday, Glencore International will
start trading in the FTSE 100 and for
one week existing account holders
with WorldSpreads will be eligible to
spread bet on this stock spread free.
Philip Salter
Traders analyse #Twitter to
predict market movements
The social-networking website
is a useful means of keeping up
with trends, says Craig Drake
L
AST week, Derwent Capital
Markets launched the world’s
first social-media-based hedge
fund. The $40m fund will use
Twitter to guide its investments, mon-
itoring a selection of tweets to gauge
market sentiment before making
trades. Spread betters hearing this
news will be pricking up their ears and
thinking about how this could be
applied to their trades.
The idea of using computer analysis
to mine market data from a source to
inform investment decisions is not a
new idea. But this is the first time that
Twitter has been used in this way. It is
the result of research published last
year by Johan Bollen, a professor of
informatics at Indiana University.
Bollen demonstrated how the social
networking site could be used to gain a
prediction of market sentiment. The
paper, titled “Twitter mood predicts
the stock market”, claims an 87 per
cent accuracy rate at predicting the
movements of the Dow.
Derwent Capital bought the exclu-
sive rights for the use of the analytics
program via a licensing agreement
with Indiana University. The hedge
fund has also hired Professor Bollen,
along with co-author of the study
Huina Mao, as consultants.
Time will tell how effective the fund
is – at its launch, Derwent Capital said
that it hopes for 15 to 20 per cent
returns. But how useful is Twitter for
spread betters?
According to Michael Hewson,
Market Analyst at CMC Markets
(@MichaelHewson) “from my point of
view it gives an element of interaction
between myself, CMC Markets and
clients.” Regulations do not allow ana-
THE WEEK AHEAD
COMPANY NEWS
l British Land announces
its results today. Recent
good news includes the fact
it has pre-let around a third
of its Cheesegrater sky-
scraper to Aon.
l On Tuesday, Marks &
Spencer will deliver its
results. In 1941, the
Westminster based retailer
raised £5,000 to pay for a
Spitfire fighter called “The
Marksman”. Shareholders
will hope it fires off some
good results. Worldwide
Group, De La Rue and Cable
and Wireless Worldwide
also announce on Tuesday.
l On Thursday, United
Utilities, Man Group,
Burberry and KCOM
announce. On Friday, Severn
Trent will want to make a
splash with its results.
There are plenty of
sources for
informative tweets
Picture:
ALAMY
lysts such as Hewson to give financial
advice via Twitter, but his regular
tweets keep followers updated on mar-
ket movements. “Twitter is certainly
useful for traders. It raises peoples
awareness of what is going on in the
market place.”
David Jones, chief market strategist
for IG Index (@DavidJones_IG) is also
worth a follow, tweeting at a prodi-
gious rate.
However, there is need for a word of
caution – and before you carry on
in association with
ECONOMICS NEWS
l France’s, Germany’s and
the EMU’s preliminary man-
ufacturing and services data
will be released on Monday.
l On Wednesday, the BBA
loans for house purchase
will be released. As will the
second release of the UK’s
first-quarter GDP, while the
US’s first-quarter GDP sec-
ond release will take place
on Thursday.
l May CPI data for
Germany is released on
Friday. It is the central indi-
cator to judge monetary
value trends in Germany,
used in wage negotiations
and in agreement clauses
regarding the level of recur-
ring payments. EMU M3 will
also be released on Friday. It
will be interesting to see if
money supply has grown.
| Spread Betting
21
reading you may need to sit down and Buffett’s Berkshire Hathaway.
pour yourself a stiff drink – not every- Similarly, in February wrong rumours
thing on the internet is the gospel abounded on Twitter of the sudden
truth. Remember the Rapture predict- death of the Saudi king. On the back
ed by erudite theologians on Twitter of this unfounded speculation, crude
for the weekend? Indeed – we are still oil prices had a short term spike as
all here reading this newspaper. investors feared disruption of oil pro-
One example of a reality spanner duction.
getting thrown into the works of Twitter is undoubtedly a useful tool
ingenious trading algorithms is the in any trader’s armoury as you search
possibility that tweets about actress for all the market news you can get
Anne Hathaway affect the fortunes of your hands on. But beware the risks of
rockstar fund-manager Warren unsubstantiated tweets.
POLITICS NEWS Capital Spreads trading app
for the iPhone and Android
l On Tuesday, a backbench
motion relating to Eurozone anytime, anytrade, anywhere.
financial assistance will be
presented. It will look at
why UK taxpayers are liable
for bailing out Eurozone
countries even though the
UK opted to remain outside
the euro.
l On Wednesday, as part of
his European tour, President
Obama is expected to make
a speech in London on
Europe and transatlantic
relations.
l National Farming Union
bosses will meet politicians Apply now at capitalspreads.com
on Thursday to “eliminate Spread betting and CFD trading carry a high level of risk
unfair commercial practices to your capital and you can lose more than your initial
deposit. These trading products may not be suitable for
and create a brighter future all investors so seek independent advice if necessary.
for the British dairy indus-
try.” If they are successful, Capital Spreads is a trading name of London Capital Group, which is authorised and regulated
expect to pay more for your by the Financial Services Authority.
milk.
 22 Wealth Management | Markets CITYA.M. 23 MAY 2011

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 Business Features
23

| Entrepreneurs

The man who knows

how to make a splash
Tim Weller tells Donata Huggins restructure the company, cutting
an equity swap with the bank to
how he turned his Incisive Media stay afloat.
“We’re smaller but more prof-
itable now. We had to go back to
into the publishing force it is today our entrepreneurial knitting. I’m
not interested in acquisitions any
more, or aiming to be a FTSE com-

M
ONEY and recognition
motivates me,” Tim
Weller, the founder of
Incisive Media tells me.
“Oh and passing on what I’ve
learnt to other entrepreneurs. I
just think if I’d know what I know
now, I would have got here much
faster. That’s why I’m speaking at
the City A.M. and Entrepreneurs
World Conference.”
THE RISE OF INCISIVE MEDIA
Weller started Incisive Media in
1995 and grew it into the £100m
turnover publishing company it is
today. It wasn’t a smooth ride for
him, though. Tim started the
business with little capital, a
house in negative equity and
three children under five years
old.
Weller explains: “I was sort of
forced into starting it. I had taken
a job at Reuters to launch a busi-
ness-to-business publishing arm,
but it quickly became apparent
that they had mis-sold me the job.
I was too old to be working for
anyone else, so I took the cheque I
managed to get from them and
started Incisive Media.”
The Incisive Media business
connects buyers and sellers of
financial products through busi-
ness-to-business publications,
owning many well-known finan-
cial titles such as Investment
Week, Accountancy Age and
Professional Adviser.
HIT HARD IN THE RECESSION
The company was hit hard in the
recession. “Being a business that’s
sustained by advertising – and
advertising in the financial sector
no less – 2008-9 were very diffi-
cult years.” The company was
highly leveraged when the crisis
struck. In 2007 it had spent nearly
£700m on acquisitions in just
eight months. Weller had to
pany. I want to be known for sell-
ing high quality content.”
Weller says he has never regret-
ted starting the business: “My
wife had her doubts. I had some
too. But even during the worst
days of 2008-9, it always felt
worthwhile getting out of bed to
run the company.”
INVESTOR BY NIGHT The man behind the Incisive Media titles
Weller now also acts as an
investor. “Incisive is my day job,
CV | TIM WELLER
where most of my passion and
energy goes, but I think I’d go Company name: Incisive Media Reading: Accidental Billionaires by Ben
mad if I couldn’t have my hand in
Company turnover: £100m Mezrich
other businesses too. Funding can
be difficult for many entrepre-
Number of staff: 800 Idol: Ian Botham
neurs to get their hands on at the Job title: Group Chief Executive Talents: Skateboarder
moment, I want to do my bit to Age: 50 Favourite business book: Liar’s Poker
help.” Born: London Awards: Ernst & Young Entrepreneur of
Tim Weller will be speaking at the Lives: Knightsbridge and Leicestershire the Year Award 2001, Marcus Morris
City A.M. and Entrepreneurs World Studied: Zoology, University of Wales, Award 2005
conference on 22 June. Visit Cardiff Motto: “Don’t be a busy fool”
www.cityam-helix.com for more infor- Drinking: Calon-Segur St Estephe 2000 First ambition: “To score a 100 at Lords”
mation.

Five ways to make sure the cash flows

Donata Huggins finds out how your Pennies don’t
fall from
business can get its hands on some heaven, but
they can be
of its untapped financial resources found tied up
in your
business cycle

N
O SMALL business owner
wants to hear yet more
about how tight lending
conditions are at the
moment. The pressure this can
put on a business’s cash flow is
often unbearable and is one of
the most common reasons many
businesses buckle. But before
blaming the banks, there is scope
for entrepreneurs to work with
what they’ve already got. Recent
analysis published by Deloitte
shows that British companies are
sitting on £60bn worth of unpro-
ductive working capital that is
unnecessarily tied up in the busi-
ness. To learn how to tap into this
potential treasure trove, we asked
the experts for their tactics.
of Caxton FX says: “Making sure
everyone in your organisation has Picture:
some understanding of this is ALAMY
really important.”
2.ROLLING WEEKLY FORECASTS.
More regular cash flow fore-
casts can help you spot a prob-
lem before it’s too late. Garrath
Marshall, a director in Deloitte’s
entrepreneurial business team,
says: “Identifying future cash sur-
pluses, deficits and developing
cash-generating initiatives allows
you to take action and be ready
for any future cash require-
ments.”
3. DON’T SURPRISE THE BANK.
Regular communication with
the bank is a very good idea.

1.BREAK OUT OF
THE FINANCE MINDSET.
Working capital, and the manage-
ment of working capital, should
not be seen as one department’s
responsibility. Everyone from
sales through to procurement
and customer service needs to be
collating data and watching out
for opportunities to speed up pay-
ments and extend credit facilities.
Entrepreneur Rupert Lee-Browne
“Going to them cap in hand
when you’re in trouble will only
get you punitive rates,” says Lee-
Browne. Keeping the bank
informed and not being afraid to
ask for additional funding is the
best approach.
4. SCRUTINISE PAYMENTS.
Don’t miss out on what
you’re owed. Scrutinise your tax
payments, especially VAT. “Many
businesses overpay and fail to
claim back possible rebates. Take
advice if not clear on how to do
this,” says Andrew Harris, an
associate partner in Deloitte’s
Corporate Advisory team.
5. GET THEM TO PAY UP FASTER.
Taking a more proactive
approach to collecting money
can really help speed up pay-
ments. Marshall recommends
contacting the client before the
payment is due to ask if their
expectations were met. This
allows you to confirm payment
terms and resolve any invoice dis-
putes before it’s too late. Bobby
Lane, a partner at accountancy
firm Shelley Stock Hutter, says:
“Offering things like early pay-
ment discounts can speed things
along. Talking to suppliers to see
if you can extend terms with
them is not a bad idea either.”
Introducing and negotiating offi-
cial supplier payment terms
rather than simply going with
what suppliers usually offer is
one way of doing this.
 Lifestyle
24 In association with CITYA.M. 23 MAY 2011

| Travel

Lavishness amid the lonely

splendour of the Welsh coast
Rhodri Karim finds himself in reflective mood on a visit to a
S
OUTH Wales is home to a duali-
ty like nowhere else in the
landmark hotel on the beautiful South Wales shoreline British Isles. It's a land of time-
less verdancy, endless summers
and persistent rain. It's a land torn
apart by poverty, and before that the
machinery of heavy industry. It is also
my favourite place on earth.
On the train eastwards from
Swansea, this tension between nature
and industry is visible. On one side,
the mile-long steelworks at Port
Talbot, belching sulphuric clouds out
into Swansea Bay. On the other, hill-
sides ravaged by the sea breeze and
acid rain, the scrub and lichen ren-
dering them a toxic yellow.
But beyond these scars of past
industry lies a landscape bursting
with life, all green, scrubby and soggy
in the March fog. In summer the
clouds hang tangible in the blue sky,
the sun dappled through oaks and
cypress onto roads winding through
the hills and down to the coast.
It’s a raw land where nature is a
constant presence, whether it’s in the
sweeping views from every hilltop or
the stucco-clad Seventies eyesores
that nestle on crags and in hillside
crannies. Wales, of course, is chock
full of hills. It’s this drama of altitude
that makes driving or cycling your
way through the heartland of
Carmarthenshire so thrilling.
Cardiff seems downright European
compared to the overgrown country-
side. Sheer hill faces give way to
orderly hedgerows and terraced hous-
es as the train rolls alongside the
River Taff and the Millennium
Stadium. The city centre is a fascinat-
ing mix of Victorian arcades, tratto-
rias (Wales boasts a large Italian
contingent) and glistening new EU-
funded malls and libraries.
We trundle through suburbs, salu-
brious new developments and Min-Y-Don, is full of neutral tones and
decrepit industry. All of this sand- clean lines. The bed is big, and comfy.
wiched between hills and forests, the The windows look out onto a magno-
coast and the land. Arriving in lia tree, the coastal path and the
Penarth I realise I can’t smell the sea, Channel (or would, if it wasn’t quite
though the gulls guide me along the so foggy). There’s a bath alongside the
mock-Tudor high street and down window, which I resolve to make use
through allies to the seaside. of later.
I have a look around the rest of the
PENARTH hotel, finding a serene slate-walled
The crumbling pier at Penarth is over- pool and a modest gym. Some bed-
run with families, tourists and the rooms have balconies, others private
local youth, even as the steward gardens. It’s a veritable pile of a
attempts to enforce closing time. The house, with twisting corridors and
Bristol Channel seems to go on forev- plenty of wooden panelling. By acci-
er in the March evening murk, as dent I stumble into another room, in
adults and children alike stumble all a newer section of the hotel, dressed
over the pebble beach. In the in pristine white and flooded with
distance, a refinery of some kind natural light.
peeks around the cliff faces surround- There is a sense of the bespoke,
ing the bay. though executed somewhat haphaz-
Penarth was renowned as a seaside ardly. The taps in my room are unla-
resort by those over-egging belled, and turn in strange directions.
Victorians, who built sprawling sea- An eerie array of magazines have been
side mansions which have mostly fall- placed on the table, next to the plastic
en into disrepair. Now, the flowers and coffee creamer. They fea-
revitalising sea air is breathed in ture headlines like “349 Reasons to
mostly by Cardiff commuters and the Smile” and “Things You Can Stop
retired, making up a quarter of the Worrying About RIGHT NOW”.
population. As I make my way up I read up on the history of the build-
Marine Parade towards the hotel I ing, built by a shipping magnate in
pass hospices and care homes. the 1920s when Marine Parade was
I almost miss the unassuming known as “Millionaire’s Row”. I am
Holm House, with its tasteful gravel amused to find that it was, for a
driveway and the requisite Audi TT while, a nursing home.
parked outside. I’m met in the wood-
panelled entrance hall, and shown DINNER AT HOLM
upstairs to my room. Each is individu- At dinner time, I head down to the bar
ally named and designed and mine, to prepare to eat at the Hotel’s restau-
CITYA.M. 23 MAY 2011
Everything at Holm House is about comfort, from
the rich food and low lighting to its soft beds and
sea views, which stretch to the islands off Flatholm
rant, Neale’s. It’s a brooding room
full of leather and wrought iron, big
seats and circular sofas. I order a
whisky, and I’m furnished with a
bowl of crisps and olives. Looking
over a menu, I notice a caveat: “the
game is local, and may contain lead
shot.”
Out of the blue comes the first of
many amuses-bouches: a chicken
liver parfait with Bloody Mary jelly.
It’s full of iron and sweetness, deli-
cious. I immediately regret not order-
ing a cocktail, the “Neale’s” featuring
ruby port and cognac.
I’m then shown into the restaurant
and handed another amuse-bouche,
this time a meaty king prawn served
up in rich, lemon-scented garlic but-
ter, teetering on a crunchy bundle of
samphire.
This is followed by a starter of pork
terrine served alongside a piquant
garden of pickles and a paltry
triangle of toast. It’s got a fantastic
rough-chopped texture, but doesn’t
taste of much. Then comes my main,
a pan-fried duck breast, which turns
out to be perfectly cooked, rich and
covered in seared skin. It hasn’t been
interfered with at all, other than
being sprinkled with tangy white
In association with
caviar, and is served with a pile of
deliciously sauced cracked wheat and
chicory.
Next I’m brought a creme egg par-
fait, airy layers of chocolate mousse
and fondant a far cry from the sickly
sweetness of the real thing.
Finally, I end with a rhubarb assi-
ette, a high-concept tasting plate
including a rhubarb consommé, a
deconstructed crumble and rhubarb
caviar. It’s hit and miss, but light and
refreshing, exactly what I needed
after such a profound meal.
HOLM HOUSE
Everything at Holm house is about
comfort, from the rich food and low
lighting, to its soft beds and sea
views, which stretch to the islands off
Flatholm, Steepholm and beyond.
The bar too, features sunken leather
armchairs and warm wooden furni-
ture. Perhaps it’s just the wine, but it
feels like a real break from all
worries, a great setting for a weekend
away.
Revived after a strong coffee and
some petit fours, the fairy lights
strung across the garden lure me out-
side for a walk along the coastal path.
I can see lighthouses along the Devon
CHABROT BISTRO
D’AMIS
REVIEWED IN
TOMORROW’S PAPER
Left, a view of the
South Wales coast-
line.
Picture: ALAMY
Below left, the
exterior of Holm
House, Penarth.
Below middle and
right, interiors at
Holm House.
coastline winking through the haze.
A brisk wind comes off the bay and I
find myself reflecting on the timeless
quality of the coast, before heading to
bed.
The next morning, I head down for
a breakfast of porridge and whisky.
Sitting next to the garden window, I
watch seagulls wheel through the
fog.
On the table is the standard
Continental fare: fruits, cereal and
toast. (The hotel that perfects break-
fast will be the most successful hotel
on Earth.)
On my way back to the train sta-
tion, I take a detour through
Alexandra Park, a sprawling garden
on a hillside, its war memorial facing
the Channel.
The sun has come out, and I get a
strong sense of the Victorian
grandeur that was the mark of
Penarth’s heyday. The seaside man-
sions loom above the pine, and I
realise that what I’ve been hearing all
day is birdsong.
TRAVEL DETAILS
Rooms at Holm House start at £110,
including breakfast.
Holm House, Marine Parade, Penarth
Vale of Glamorgan, Wales. CF64 3BG,
Tel: +44 (0)29 2070 1572
www.holmhouse.com
25
TRAVEL NOTES | by Lucie Greene
ALL ABOARD! EUROSTAR TO AVIGNON WIMBLEDON WONDER
Paris? So over. Well, not quite, but as Wimbledon tennis is soon to kick off
the weather gets warmer southern and local hotel Cannizaro House has
France does hold a certain allure. Lucky the perfect solution to that creaking
then, that Eurostar has started District Line journey afterwards
offering direct weekly serv- into town. The stately
ices to Avignon, pictured home/boutique hotel,
above, the beautiful set in the heart of
town in the heart of Wimbledon Village
Provence. From July (very near the All
9th to September England Club) is
10th this year, pas- offering a clutch
sengers will be able of packages
to zoom down throughout the
south tournament,
in less than six including stays
hours, enjoying mag- with complimenta-
nificent views of the ry courtesy cars to
French countryside the tennis, privileged
along the way. Needless ticket booking to
to say, this will be a popular Centre Court and Court 1
service, so Eurostar is recom- for guests, and pre-match
mending booking early to avoid disap- lunches with fizz and courtesy trans-
pointment Direct tickets start: £109, port to the game afterwards. Game,
for a standard return, £249 Standard set, match. Rooms from £475 per
Premier. See: www.eurostar.com room. www.cannizarohouse.com
THINK ROOMS... with
THE ST DAVID’S HOTEL & SPA 5*
Havannah Street | Cardiff | CF10 5SD
A modern icon of the city, The St David’s
Hotel & Spa stands proudly on the edge of
bustling Cardiff Bay. With its striking glass-
fronted design every room here enjoys
spectacular floor-to-ceiling views across the
water, creating a real tranquil atmosphere
throughout. And for real relaxation, the Marine
Spa provides probably the finest pampering
experience in Cardiff.
THE IMPERIAL HOTEL 4*
Vaughan Street | Llandudno | LL30 1AP
A grand Victorian façade and fantastic sea-
fronting position on Llandudno’s promenade
makes The Imperial Hotel a real seaside classic.
Relax in the elegant surroundings, enjoy the
stunning sea views and taste mouthwatering
dishes in the AA Rosette awarded Chantrey’s
Restaurant, well known for its delicious food
made with seasonal Welsh produce. Lovely.
VILLAGE PREM SWANSEA 4*
Langdon Road | Swansea | SA1 8QY
As with all Village Hotels, the range of facilities
at the Village PREM Swansea is fantastic. This
cool and stylish hotel offers a great Health &
Fitness club, a grill restaurant, a pub and even a
Starbucks. Being a ‘PREM’ a high spec stay is on
offer, and with so much going on there’s a real
buzzing atmosphere – perfectly complementing
your stay in lively Swansea.
To book your stay at any of these fabulous hotels, or to discover a whole world of other
accommodation possibilities, visit LateRooms.com or call 0161 831 3894.
 26 Lifestyle | Travel CITYA.M. 23 MAY 2011

Cosiness meets luxury in the

new generation of pub hotels
Smart boozers with smarter bedrooms are a classy way to go, says Timothy Barber
THE ORANGE, Pimlico

I
F you’re skipping out of town for
a weekend, you don’t always Formerly the Orange Tree, one of Pimlico’s
want the ultra-plush, waited-on- more charming pubs also has four swish
hand-and-foot trappings of a
smart hotel any more than you want bedrooms on its second floor. The pub, done
the chintz and limited comforts of a up a couple of years ago by the team behind
B&B. For cosiness, convivial hospitality the Chelsea set’s pub to see and be seen at,
and excellent nightcap options, a stay the Thomas Cubitt, is now a place of
at a pub with rooms can be the
answer, not least because you tend to
stripped-back, airy cosiness, with an appeal-
find the best old taverns in some of ing (if pricey) gastro menu. Double room
the country’s most charming places. from £185 www.theorange.co.uk
Nowadays, though, you also find
them in London. The past decade has
seen a revolution in the sophistication THE GRAZING GOAT,
and style on offer in pub hotels, some- Marylebone
thing that’s more recently been taken From the same team as the Orange, the Goat
up by a handful of the capital’s booz- was refurbished at the end of last year. It
ers. The team behind central London’s
smart gastro hangouts the Thomas sits near Portman Square, a few minutes’
Cubitt and the Pantechnicon Room walk from Marble Arch and has eight rather
have expanded with two fine pub spacious bedrooms designed in an oak-
hotels, while Clerkenwell’s Fox & floored, country house style. It’s a smart and
Anchor and Wandsworth’s recently
relaunched the Alma show that posh
stylish boozer – all pale wood and big win-
hotels don’t have a monopoly on seri- dows – and a cosy alternative for a West
ously luxurious staying. End stay. Double rooms from £195
www.thegrazinggoat.co.uk

THE ALMA,
THE FOX AND ANCHOR, Wandsworth
Clerkenwell The Alma defies the law positing that the
The old school beauty and Dickensian atmos- nearest pub to a train station should be as
phere of Clerkenwell’s knotted streets are rough as a badger’s bum. It’s directly
well reflected in the Fox & Anchor’s gor- across the road from Wandsworth Town
geous interiors. The pub, just off station, in the area’s genteel Old Town,
Charterhouse Square, is a moody, where it has been operating as a convivial
mahogany-lined den of nooks and corners, drinking den for West Londoners for many
while the handful of rooms upstairs mix a years. Late last year it got a makeover,
certain old-school ambience with serious which included the addition of 23 smart
comfort and luxury. The vast City Boy break- bedrooms in the former metalworks
fast is sensational. Weekend rooms from behind. Rooms from £180
£95. www.foxandanchor.com www.almawandsworth.com

THE HOSTE ARMS, THE WYKEHAM CRAB & LOBSTER, SANCTUM ON

Burnham Market ARMS,
The pub, in the heart of Winchester
Norfolk’s famously upmarket
seaside town, boasts 35 styl-
ish rooms, all suitably bou-
tiquey with giant fluffy beds
and luxury toiletries galore.
The bar’s outdoor front tables
make a great spot for sunny
afternoon drinking. A lovely
restaurant too.
Rooms from £122
www.hostearms.co.uk
The Wykeham, found in the
quiet streets between
Winchester College and the
town’s famous cathedral, has
a long-established reputation
as one of the finest watering
holes in the south of England.
A place of unabashed charm
with 14 plush bedrooms.
Rooms from £99
www.fullershotels.com
Sidlesham
This 350-year-old pub is nes-
tled on the banks of Pagham
Harbour Nature Reserve in
West Sussex overlooking the
water, and offers 4 plush dou-
ble bedrooms along with a
cute neighbouring two-bed-
roomed 16th century self-
catering cottage. A relaxed
place with a rustic pub atmos-
phere. Rooms from £140
www.crab-lobster.co.uk
THE GREEN,
Berkshire
Owned by music biz entrepre-
neur Mark Fuller and with
Michelin-starred chef John
Burton Race in charge in the
kitchen, this takes urban glam-
our – crystal-encrusted door-
handles, a minimalist
swimming pool – to the sleepy
village of Cookham Dean.
Rooms from £120
www.sanctumonthegreen.com
CITYA.M. 23 MAY 2011 Lifestyle 27

Floral menus,
fruity fare and
shops galore
Chelsea’s bars, boutiques and restaurants
have cooked up a host of gardening-inspired
treats for the Flower Show, says Lucie Greene

I
T’S here! Chelsea Flower show opens
tomorrow and 157,000 gardening
lovers – the lucky ones who managed
to get tickets – are set to descend on
the chi chi London locale. Gardeners
aren’t the only ones getting in to the spirit
this year. Throughout Chelsea and its sur-
rounds, London’s finest bars, boutiques
and eateries are launching themed events
and menus.
Revellers hitting Chelsea early can pre-
pare at Peter Jones’ Brasserie cafe (www.john-
lewis.com) in Sloane Square, which for the
duration of the show is serving a “Blooming
Botanical Breakfast” of freshly baked poppy
seed bloomer, thyme butter, lavender
honey, a blueberry muffin and yoghurt
with fruit compote.
Lunch offers some similarly floral
options. Tom Aikens’ Restaurant Above, Laurent- Chef Tal Hausen. Ooh lala! The Four from the show Chelsea Flower
(www.tomaikens.co.uk) is serving a five-course Perrier’s champagne Seasons’ Amaranto (www.fourseasons.com) on grounds, is offering a Show has created
flower themed menu, featuring scallops cocktail at The Park Lane and Brown’s Hotel (www.brown- range of floral cocktails a special floral
decorated in nasturtium flowers, chicken Berkeley. Below, tea shotel.com) in Mayfair are also offering simi- (apt really, since the champagne cock-
breast with marigolds and rhubarb served at Amaranto, The larly bloom-themed teas. venue itself was inspired tail for the Blue
with rose and mint. Chelsea favourite Four Seasons. Right, Then there’s cocktail hour. Here, The by Chelsea Physic Garden Bar, made with
Roussillon (www.roussillion.co.uk) and nearby Jigsaw, King’s Road Botanist (www.thebotanistonsloanesquare.com) benefactor, Sir Hans strawberry puree
Daphne’s (www.daphnes-restaurant.co.uk) will on Sloane Square, a hop skip and a jump Sloane). Revellers can sip a and rose liqueur.
also be offering set gourmet menues with Dusty Rose, made with white Next, it’s off to the
flowers. The Cinnamon Club (www.cinnamon- rose syrup and fresh pink grape- shops. (If gazing at beautiful
club.com), meanwhile, has created a package fruit with Pinky vodka and a splash of sun-kissed gardens doesn’t get
for guests including an eight-course tasting fresh lime juice; or a Lavender Bloom, a deli- you in the mood for a summer splurge,
menu and a ticket to the show, for entry cious concoction of fresh aromatic lavender what else will?) Here, boutique perfumer
between 5.30pm and 8pm on Friday May mixed with honey, Apricot du Roussillon Ormonde Jayne (www.ormondejayne.com), in
27th (£81), although be warned, tickets are liqueur and Champagne. Should the revel- honour of the event, is offering one compli-
strictly limited. ling continue, there’s always late night bar mentary mini candle in either Frangipani
Should lunch move to tea, The Barts around the corner (www.barts- Absolute, Casablanca Lily or Osmanthus
Lanesborough (www.lanesborough.com) has london.com), serving The Chelsea Flower, a from its Chelsea store with every purchase.
launched a floral themed afternoon extrav- Grey Goose Vodka tipple mixed with Creme Jigsaw (www.jigsaw-clothing.com) at its Chelsea
aganza at its restaurant Apsleys which de Peche de vigne and Mette spiritueux de store will also be decked out with flowers
includes blackberry violet cakes, strawberry Lavande. for the duration of the show, giving out free
hibiscus caramel éclairs, lavender carmelia Further afield there’s also The Berkeley seeds and complimentary fizz to customers.
champagne moulleux and raspberry lemon Hotel (www.the-berkeley.co.uk), where Laurent- With all this going on, you may forget the
verbena millefeuille, created by Head Pastry Perrier, celebrating its 13th year at the Flower Show entirely...

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TThe
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 28 Lifestyle | TV& Games CITYA.M. 23 MAY 2011

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm RHS Chelsea Flower Show
2011: BBC News 8pm EastEnders
8.30pm Fifa: Football’s Shame? –
Panorama 9pm CHOICE
Supersize Ambulance 10pm BBC
News 10.25pm Regional News
10.35pm A Question of Sport
11.05pm The Graham Norton Show
11.50pm FILM Dan in Real Life:
2007; Weatherview 1.30am Sign
Zone: MasterChef: The Final Three
2.30am Sign Zone: MasterChef:
The Final Three 3.30am Sign Zone:
One Man and His Campervan
4am-6am BBC News
6pm Eggheads
6.30pm Great British Menu
7pm The Story of Ireland:
8pm RHS Chelsea Flower
Show 2011
9pm All Watched Over by
Machines of Loving Grace
10pm Never Mind the
Buzzcocks: With host
Catherine Tate.
10.30pm Newsnight: Weather
11.20pm Louis Theroux: Miami
Mega Jail
12.20am Richard Hammond’s
Engineering Connections
1.10am French Open Tennis 2.10am
BBC News 4am-6am Close
6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm ITV News 6.30pm Hollyoaks 6.25pm OK! TV
7pm Emmerdale 7pm Channel 4 News 7pm 5 News at 7
7.30pm Coronation Street 7.55pm 4thought.tv 7.30pm How Do They Do It? 5
8pm The Dales 8pm Dispatches: The Truth News Update
8.30pm Coronation Street About Your Dentist 8pm CHOICE The Gadget
9pm Strangeways 9pm CHOICE Gordon’s Great Show: 5 News at 9
10pm ITV News at Ten Escape 9pm The Hotel Inspector
10pm FILM Mirrors: Premiere.
10.30pm London News 10pm There’s Something
10.35pm FILM Tango & Cash: With Kiefer Sutherland. 2008. SUPERSIZE AMBULANCE
About Josie BBC1, 9.00PM
With Sylvester Stallone. 1989. 12.10am The Event
1.05am Poker 2am 24 Hours in 11pm FILM Enough: Thriller, The programme offers an insight
12.25am The Zone; ITV News starring Jennifer Lopez. 2002.
A&E 2.55am Empire: How Britain into patients’ experience and the
Headlines Made the Modern World 3.55am 1.15am SuperCasino 4am Meals in impact of obesity on people’s lives.
2.30am UEFA Champions League The Coldest March 4.50am Moments 4.10am How Not to Narrated by Liza Tarbuck.
Weekly 2.55am ITV Nightscreen Wogan’s Perfect Recall Decorate 4.55am Rough Guide to
4.35am-5.30am The Jeremy 5.20am-6.10am Hill Street Blues: Weekend Breaks 5.10am Wildlife
Kyle Show Belker’s cover is blown. SOS 5.35am-6am House Doctor

SKY SPORTS 1 10pm WWE: Late Night – Bottom 5.30am-6am ESPN Game of the E4 4.40am Raging Planet
SATELLITE & CABLE

7pm Sky Sports News at Seven
7.30pm Champions League Weekly
8pm Hold the Back Page Special
9.30pm Premier League Review
10.30pm The Sky Sports Years
11.30pm Soccer AM: The Best Bits
12.30am Hold the Back Page
Special 2am Premier League
Review 3am FIFA Futbol Mundial
3.30am Watersports World
4.30am Max Power 5.30am-6am
FIFA Futbol Mundial
SKY SPORTS 2
7pm Great Run Series 7.30pm Live
Elite League Speedway 9.30pm
NASCAR 10.30pm Great Run
Series 11pm Elite League Speedway
1am European Tour Golf 2am PGA
Tour Golf 3am Wonderful World of
Golf 4.30am-5.30am Premier
League Review
SKY SPORTS 3
6.30pm European Tour Golf
7.30pm PGA Tour Golf 8.30pm
Wonderful World of Golf
Line 11pm WWE: Late Night –
Afterburn 12am WWE: NXT 1am
WWE Vintage Collection
2am-4.15am Live WWE: Late
Night – Raw
BRITISH EUROSPORT
9.30am Live French Open Tennis
7.45pm Game, Set and Mats: A
review of the latest French Open
action. 8.15pm French Open Tennis
9.45pm Cycling: Giro d’Italia
10.45pm Eurogoals 11.15pm
Champions Club 12am-12.30am
Game, Set and Mats
ESPN
6.30pm Talk of the Terrace 8pm
NBA 10pm ESPN Pardon the
Interruption 10.30pm ESPN Game
of the Week 11pm Premier League
Review 11.30pm This Week in
Baseball 12am Goal! Special
12.30am ESPN Press Pass 1am
Live NBA Countdown 2am Live
NBA Basketball 4.45am ESPN
Kicks: Extra 5am ESPN Press Pass
Week
SKY LIVING
7pm CSI: Crime Scene
Investigation 8pm Dating in the
Dark 9pm Four Weddings Revisited
10pm 16 & Pregnant 11pm Criminal
Minds 12am CSI: Crime Scene
Investigation 1.50am Ghost
Whisperer 3.30am Charmed
4.20am Nothing to Declare
5.10am-6am Maury
BBC THREE
7pm Don’t Tell the Bride 8pm Snog,
Marry, Avoid? 8.30pm Young, Rich
and Househunting 9pm Gavin &
Stacey 10pm EastEnders 10.30pm
Bizarre ER 11pm Family Guy
11.50pm Young, Rich and
Househunting 12.20am Gavin &
Stacey 1.20am Bizarre ER 1.50am
Don’t Tell the Bride 2.50am Snog,
Marry, Avoid? 3.20am Botox
Britain: Your Face in Their Hands
4.20am-5.15am The Big Fat Truth
About Low Fat Foods
7pm Hollyoaks 7.30pm Friends
9pm Glee 10pm Made in Chelsea
11pm Beauty and the Geek 12am
My Name Is Earl 12.55am Ugly
Betty 1.45am Beauty and the Geek
2.25am Being Erica 3.10am
Heartland 3.55am Style Her
Famous 4.15am-6am Switched
HISTORY
7pm Heir Hunters 8pm Pawn Stars
10pm American Pickers 11pm IRT
Deadliest Roads 12am Pawn Stars
1am American Pickers 2am IRT
Deadliest Roads 3am Heir Hunters
4am The Universe 5am-6am Ice
Road Truckers
DISCOVERY
8pm How It’s Made 9pm
Mythbusters 10pm Britain’s
Toughest Cops 11pm Through the
Wormhole with Morgan Freeman
12am Bear Grylls: Born Survivor
1am Deadliest Catch 2am Future
Weapons 3am Hitler’s Henchmen
3.50am World War One in Colour
5.30am-6am Destroyed in Seconds
DISCOVERY HOME &
HEALTH
7pm Bringing Home Baby 8pm 10
GORDON’S GREAT ESCAPE
Years Younger: The Challenge: A
teaching assistant is given a
CHANNEL 4, 9.00PM
Gordon Ramsay explores the culinary
makeover. 9pm Special Delivery:
Baby ER 10pm Kids’ Hospital 11pm traditions of Malaysia, and has a week
A&E 12am Special Delivery: Baby to prepare for a competition in which
ER 1am Kids’ Hospital 2am A&E national dishes are cooked.
3am 10 Years Younger: The
Challenge 4am Quint-Essential
5am-6am Bringing Home Baby
SKY1
8pm Stargate Universe 9pm A
League of Their Own: Best of 10pm
Spartacus: Blood and Sand
11.05pm Caprica 12.05am Ross
Kemp: Battle for the Amazon 1am
War Torn Warriors 1.50am Night THE GADGET SHOW
Cops 2.40am Cold Case 3.30am CHANNEL 5, 8.00PM
The 4400 4.10am The King’s Jason Bradbury and Ortis Deley
Speech Special 4.20am Secret Life are challenged to improve their
of Suburbia 5.10am-6am All Star performance in triathlon events
Don’t Forget the Lyrics using technology.

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QUICK CROSSWORD
    

SUDOKU KAKURO
11 8 21 21 30 18 38 4 
10 12
  
29 26
Place the numbers from 1 to 9 in each empty cell so that each 8  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 32
17 36 6
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 17 12 3
    
above or to the left of it. 20 24
You can only use the digits 1-9 35 22
   and you must not use the
24
12 13      
same digit twice in a block. 9 15 7
  The same digit may occur 6 17  
11
    more than once in a row or
column, but it must be in a
13
23
14
7
15
 
27
     separate block.
11 16 12 
13 14
  28 27
 

 ACROSS DOWN
1 Hazes over (5) 1 Means for
 
    WORDWHEEL C N
4 Makes tight against
leakage (5)
7 Cardinal number (3)
communicating
information (5)
2 Follow prey stealthily (5)
Using only the letters in the Wordwheel, you have 3 Male children (4)
   ten minutes to find as many words as possible,
A T 8 Sketched (5)
4 General conscious
10 Not a single
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters E person (2-3)
11 Endures (5)
awareness (5)
5 In the area or vicinity (5)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
M H 13 Requests (4) 6 Swiftness (5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
P R 15 Reposed (6)
18 Surpassing in
9 Fritter away (5)
12 Accuracy (5)
QUICK CROSSWORD 8 5 3 8 6 8
quality (6) 14 Travel on the piste (3)

A S H E S G A R B O
7 2 1 6 3 6 1 SUDOKU         
21 Sums up (4) 16 Step (5)
L A T M I
8 9 5 3 1 5 2
         24 Belonging to them (5) 17 Conclude (3)
8 9 7 5 6 8 9 7
C M A L M A N A C          26 Bedtime beverage (5) 18 Confronts bravely (5)
A M B E R Z S 1 3 2 3 1 4
Z U T R O O P E R 5 1 6 7 2 4 3 9 8
         27 Level (5) 19 More pleasant (5)
WORDWHEEL
A G R A A N O D E          28 Boisterous 20 Look at intently (5)
4 9 1 2 2 6
R A G T I M E S C         
R H A I S L E
6 9 7 8 4 1 7 9 practical joke (3) 22 Excitement (5)
        
O N G O I N G E I
2 6 3 1 7 4 9 The nine-letter word was 29 Dish out (5) 23 Panorama (5)
E M E S P 1 8 2 2 4 4 8         
A R M E D R E S E T 7 1 1 8 1 9
HANDSHAKE          30 Relative magnitude (5) 25 Ova (4)
 Sport
29
“THE FAT LADY HAS FINISHED
SINGING – I DON’T LIKE THE TUNE”
BRAVE BLACKPOOL ARE RELEGATED AND
ARE JOINED BY BIRMINGHAM: PAGE 31

Results
Hamilton runs
BLOOD BROTHERS: EVANS SALUTES QUINS SPIRIT
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▲

FORMULA ONE Red Bull’s Vettel admitted he was

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the Circuit de Catalunya. Kfkk\e_Xd%%%%%%%%%%%%%%%%%%%%%*/ (- (+ / ,, +- 0 -)
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clearly had some make a differ- who kicked the winning conversion to seal a 19-18 victory, said: “Everyone hated us but
serious pace, but it ence.” now we have a Conor O’Shea who has instilled new values.” Picture: ACTION IMAGES email sport@cityam.com
▲

The Royal Ascot

Golf Day and Charity Ball
in aid of Cancer Research UK
hosted by Derek Thompson
and horseracing stars

Cancer Research UK is a registered charity in England

& Wales
a (1089464) and in Scotland (SC041666)
 30 Sport
European
woes damn
Ancelotti
FOOTBALL COMMENT
FRANK DALLERES
T
WELVE months ago Carlo
Ancelotti was toasting the
Double after an exemplary
first season in England. This
morning he is jobless, the latest
manager to be discarded by
Chelsea in Roman Abramovich’s
quest for perfection.
Sympathy will not be hard to
come by, and not just because of
the Italian’s easy-going charm.
Yet Ancelotti’s departure had
looked inevitable for weeks if not
months. His failure to arrest a
mid-season slump ultimately cost
Chelsea the Premier League title.
Arguably even more wounding
for him, however, has been his
record in the Champions League.
It is said that Ancelotti’s envi-
able Continental pedigree – he
has lifted the European Cup twice
as coach and once as a player –
played a huge part in his recruit-
ment by Abramovich, who yearns
to bring the trophy to Chelsea.
But in his two seasons at the
helm they departed the competi-
tion in the first knockout round
and then the quarter-finals. That
is worse than they managed in
the two previous years, having
reached the final and then the
semi-final – statistics that damn
him more than anything else.
Morgan gets vote
to face Sri Lanka
▲
CRICKET
BY JAMES GOLDMAN
MIDDLESEX batsman Eoin Morgan
will replace the retired Paul
Collingwood in England’s Test side to
face Sri Lanka on Thursday.
The century Morgan scored
against the same opponents for
the Lions last week convinced
the selectors he was the man to
inherit the Durham all-
rounder’s spot at No6.
Ravi Bopara,
shunned the Indian
Premier League in
favour of piling up
who
the runs in the
C o u n t y
Championship
for Essex, was
expected to win
the race to appear
in this week’s first
Test at Cardiff.
But after his
superb 193 against
the tourists
CARLO’S FIRED ON
ANCELOTTI SACKED AFTER CHELSEA END WITH A LOSS ++ BLACKPOOL DOWN AFTER DEFEAT AT MAN UTD
Ancelotti pays the price for trophyless season as
Chelsea owner Abramovich wields the axe again
▲
FOOTBALL
BY JAMES GOLDMAN
CHELSEA kick-started their summer
revolution by firing manager Carlo
Ancelotti in the aftermath of yester-
day’s defeat at Everton.
It had already promised to be a
summer of upheaval at Stamford
Bridge with a number of senior play-
ers, synonymous with the club’s
recent successes, linked with moves
away from west London.
Owner Roman Abramovich is
already looking to replace outgoing
sporting director Frank Arnesen, as
well as recruit a new chief scout, but
finding a successor to Ancelotti now
becomes the Russian’s priority follow-
ing the swift and ruthless decision to
remove the Italian.
Porto’s highly-rated Andre Villas-
Boas, a disciple of Jose Mourinho, is
rated as the bookmakers’ favourite,
while former Chelsea boss Guus
Hiddink, revealed on yesterday still to
be on the Stamford Bridge payroll in
an advisory capacity, and fellow
Dutchman Marco van Basten have
been linked with the vacant post
Ancelotti’s position had been per-
ilous from the moment his side’s
form began to dip last November, but
a late season revival, which drew
Chelsea to within three points of
champions Manchester United with
three games to play, offered last sea-
son’s Double winning coach hope of a
reprieve.
The former AC Milan coach said he
Morgan (right), who made his Test
debut last summer standing in for
the injured Ian Bell, has been handed
the opportunity to cement his place
in the five-day set-up.
National selector Geoff Miller said:
“Ravi has been getting a lot
of runs for Essex, but
the controlled innings
that Eoin played just
gave him the nod.
“That innings
showed us what he is
capable of . It shows his
strength of character.
I’ve had a conversa-
tion with Ravi. He
knows where he
stands and what
our position is – and
he’s still very much
part of our picture.”
Fast bowler Steven
Finn retains his place in a
12-man squad having been
dropped from the last
three Tests of the Ashes
series.
CITYA.M. 23 MAY 2011
expected to meet with club officials
this week to discuss his future follow-
ing yesterday’s defeat at Goodson
Park, inflicted by Jermaine Beckford’s
second-half solo effort.
But the 51-year-old wasn’t afforded
that luxury with his exit confirmed
just hours after the final whistle in a
statement that read: “Chelsea Football
Club can confirm that Carlo Ancelotti
parted company with the club.
“The owner and board would like to
thank Carlo for his contribution and
achievements since taking over as
manager in July 2009 including win-
ning the Double.
“However, this season’s perform-
ances have fallen short of expecta-
tions and the club feels the time is
right to make this change ahead of
next season’s preparations.”
WHO’S NEXT? | ABRAMOVICH’S WISH LIST
Andre Villas-Boas: Porto secured the tre-
ble yesterday, adding the Portuguese Cup
to the domestic title and Europa League,
under the guidance of the 33-year-old
tipped as the next Jose Mourinho.
Guus Hiddink: The Dutchman enjoyed a
successful six-month spell at the helm in Ancelotti was
2009 but is more likely to return full- sacked on the day
which saw Man
time in a more technical capacity United (right) lift
Marco van Basten: The Dutch legend the Premier
has had a mixed managerial record to League trophy
date but may work well alongside an Pics: GETTY/ PA
experienced head like Hiddink.
SPORT | IN BRIEF
Brit girls ready for French Open
TENNIS: Britain’s women will carry the
nation’s hopes at the French Open today
as the second grand slam of the year
cranks up a gear. Men’s fourth seed
Andy Murray does not play his first
round match until tomorrow, meaning
Anne Keothavong and teenager Heather
Watson have the chance to shine.
Keothavong is first up on Court 16 this
morning where she will meet Russia’s
Vesna Dolonts, a player ranked seven
places above the Briton in 101st place.
Watson, 19, meets Stephanie Foretz
Gacon in the first round having success-
Poulter (above) denied Donald the word No.1 spot Picture: ACTION IMAGES fully come through the qualifying stages
in Paris.
Poulter’s putter the key to Cleverly wants Hopkins fight
BOXING: World light-heavyweight
champion Nathan Cleverly is targeting a
box office defence of his title against
getting one over Donald American veteran Bernard Hopkins. The
undefeated Welshman, 24, beat late
stand-in Aleksy Kuziemski after being
confirmed as WBO champion when
Juergen Braehmer pulled out of their
fight at the 02 Arena. A few hours later
GOLF
▲
thrilling semi-final against Nicolas 46-year-old Hopkins, who won the first
Colsaerts in a play-off and trailed of his world titles 16 years ago, defeated
ENGLAND’S Ian Poulter claimed the three times in the final before turn- Jean Pascal to become the oldest world
Volvo World Match Play with a 2&1 ing things around by sinking a 40- champion ever. “Let’s get the big fights
win over Luke Donald in Spain, deny- footer at the 12th. on,” said Cleverly shortly before Hopkins’
ing his countryman the world No1 “It’s a nice boost,” said the champi- win. They’re the sorts of fights I want to
spot in the process. on. “Questions have been asked of me be involved in.” Cleverly’s promoter
Poulter had earlier also shown over the last five months. I finally Frank Warren added: “I think Nathan's
fighting qualities to come through a started holing some putts.” up there with all of them, I really do.”
 CITYA.M. 23 MAY 2011 Sport 31

SURVIVAL SUNDAY
KEY MOMENTS | SURVIVAL SUNDAY

++ BIRMINGHAM CONDEMNED BY SPURS LATE SHOW ++ WIGAN AND WOLVES ESCAPE ON FINAL DAY ++ 45 mins: Hoilett puts Blackburn 3-0 up at
Wolves, sealing his side’s safety.

Holloway blasts league after 4-2 loss sends his

side and Birmingham down into Championship
tion space to fill, and Wolves were

▲
FOOTBALL
BY FRANK DALLERES
DEVASTATED Blackpool manager Ian
Holloway turned his anger on
Premier League chiefs after his side
slipped out of the top flight on a final
day riddled with twists.
With half an hour left the
Tangerines were on course for a mem-
orable escape and a shock win at
champions Manchester United, but a
4-2 loss ultimately doomed them,
meaning they joined Birmingham,
who lost 2-1 at Tottenham, and
already-condemned West Ham in
dropping into the Championship.
The day’s big winners were Wigan,
who climbed clear of the bottom
three in the nick of time with a 1-0
win at Stoke, and Wolves, who sur-
vived despite being beaten 3-2 at
home by Blackburn.
Blackpool came from behind to
lead 2-1, through Charlie Adam and
Gary Taylor-Fletcher, only for
Anderson to equalise and defender
Ian Evatt to score an agonising own
goal before Michael Owen sealed the
result. And Holloway wasted little
Rodallega’s goal ensured Premier League sur- time in blasting the Premier League,
vival for Wigan (above) Picture: ACTION IMAGES with whom he has clashed this
month over contract rules.
Evatt’s (top right) own goal proved the decisive “The fat lady has finished singing
moment in Blackpool’s defeat Picture: GETTY and I don’t like the tune,” he said.
“The Premier League have rung me
Distraught Blackpool boss Holloway blasted up and said ‘We really love you Ian
Premier League officials Picture: GETTY Holloway’. But they have never
helped me. It is a great league. But
Hunt’s (right) late strike saved Wolves’ skin with the people who run it shouldn’t.”
just three minutes remaining Picture: GETTY Their defeat left one more relega-
favourites for it until three minutes
from time, when a Stephen Hunt goal
brought them back to within a goal 57 mins: Blackpool move clear of the drop zone
of Blackburn and meant Birmingham as Taylor-Fletcher puts them 2-1 up at United.
would drop down on goals scored.
Moments later, Roman
Pavlyuchenko’s second of the after-
noon earned Spurs victory and erased
any hope of a Birmingham escape,
although Blues manager Alex
McLeish vowed to lead them straight
back up. “They’re my lads,” said
McLeish. “I built the squad and it’s a
low for me in my career but it’s not a
fail. I will bounce back.” 74 mins: A horrible own goal from Evatt alters
Wolves had looked in trouble when the picture for Blackpool who trail 3-2.
trailing 3-0 at half-time and manager
Mick McCarthy admitted to being
“shattered physically and emotional-
ly” after their dramatic escape. “I
went through the wringer,” he added.
Wigan manager Roberto Martinez,
meanwhile, compared survival to sil-
verware after Hugo Rodallega’s 78th-
minute header steered them clear of
danger. “It’s like winning a trophy –
that’s the way I feel,” said Martinez. 78 mins: A far post header from Rodallega cat-
apults Wigan to safety with time running out.
BOTTOM SIX
TEAM PLD W D L F A PTS
Blackburn 38 11 10 17 46 59 43
Wigan 38 9 15 14 40 61 42
Wolves 38 11 7 20 46 66 40
Birmingham 38 8 15 15 37 58 39
Blackpool 38 10 9 19 55 78 39 90 mins: Birmingham were hunting a much-
needed goal when Pavlyuchenko sunk them.
West Ham 38 7 12 19 43 70 33

Wenger refuses to spend Keen flunks audition but MORE SPORT

big despite faltering finish claims he can be Mr Nasty MAKES
FULHAM
ARSENAL
ARSENAL manager Arsene Wenger
insists he’s not willing to break the
bank in order to boost his side’s pur-
suit of honours.
The Gunners will have to pre-quali-
fy for next season’s Champions
LEWIS
2
League following yesterday’s draw at
Fulham, earned through an 89th
minute Theo Walcott equaliser.
In direct contrast to Roberto
2 Mancini, who promised another sum-
mer splurge following the 2-0 win at
Bolton which cemented third spot for
Manchester City, Wenger said: “We
cannot buy players for £50m and,
even if we try to strengthen our team
and spend money if needed, that is
fact. We will try to do the right thing
and buy the right players.”
WEST HAM
SUNDERLAND
WEST HAM caretaker manager Kevin
Keen is adamant he is tough enough
to take up the managerial reins at
Upton Park despite his audition for
the job ending in a heavy defeat.
Goals from Bolo Zenden, Stephane
0
Sessegnon and Cristian Riveros VETTEL
SWEAT
ensured Sunderland extended their
superb form in the capital this season
and consigned the Hammers to the
3 Premier League’s wooden spoon in
the process
Asked if he could be nasty Keen SPANISH GRAND PRIX
said: “Yes, I can. Spread the word. I
feel I can really take the club on and PLUS: Harlequins joy at
contribute.
“If you ask the players if they want Euro win: Page 29
me to take the job, I think you'd get
an affirmative answer.”

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