Malaysia Airlines Launches 'Complete Overhaul'

Malaysian officials have released a share buy-back plan to take Malaysia Airlines off the stock market, as part of a "complete overhaul" of the embattled carrier.

State investment firm Khazanah Nasional, which owns 69% of the airline, wants to purchase the majority shareholding from investors ahead of a delisting.

The move comes as the company continues to reel from the dual effect of losing two aircraft this year - the disappearance of MH370 and the crash of MH17 in eastern Ukraine.

The airline struggled with profitability for several years ahead of this year's disasters.

Khazanah Nasional has proposed buying the outstanding stock at 27 sen (£0.0475) a share, 29% higher than the three-month average.

The complete takeover would cost 1.38bn ringgit (£255m). Shares were suspended in Kuala Lumpur ahead of the announcement.

"The proposed restructuring will critically require all parties to work closely together to undertake what will be a complete overhaul of the national carrier," Khazanah said in a statement.

"Nothing less will be required in order to revive our national airline to be profitable as a commercial entity and to serve its function as a critical national development entity."

Before this year's disasters, the carrier's financial performance was among the worst in the industry, putting a question mark over its future.

Some industry experts recently voiced concern of its ability to survive without a major cash injection from the Malaysian government.

Branding specialists have said Malaysia Airlines must take dramatic steps such as replacing its senior management and a name change.

As a state-owned flag carrier, the airline must fly unprofitable domestic routes.

Its workforce has a strong union presence that has resisted operational changes, amid the rise of low-cost regional rivals.

Khazanah said the plan required approvals from regulators and Malaysia's finance minister.

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Royal Mail To Change Post Box Collection Time

The collection time at almost 50,000 Royal Mail post boxes will be brought forward to earlier in the day under new plans.

Staff delivering letters are expected to make the pick-ups as part of their rounds.

Some 47,500 post boxes will see collection times as early as 9am, instead of the usual 5pm.

Royal Mail, which was privatised last year, said it will also add around 2,000 new boxes in under-serviced areas such as rural Scotland and Northern Ireland.

New boxes would also be fitted in areas of high pedestrian traffic, including train stations and shopping precincts.

It currently has some 115,000 post boxes around the nation.

The company said where new collection times are imposed, generally between 9am and 3pm, there will still be a late posting box within half a mile.

About 12,000 rural post boxes are already emptied during delivery rounds but the new plan would primarily affect urban and suburban locations.

The new system is designed to improve efficiency, amid a decade-long decline in stamped mail use.

The company said: "Rather than decommission uneconomic post boxes, while staying within the regulated density requirement, Royal Mail will ensure their viability by improving the efficiency of its collections arrangements."

It said consultations have been undertaken with consumer groups and regulator Ofcom has been informed.

An Ofcom spokeswoman said: "Ofcom recognises the need for Royal Mail to become more efficient so it can sustain a universal postal service that consumers value highly.

"While the changes won't affect the majority of postal users, Ofcom expects Royal Mail to communicate clearly with any affected consumers and ensure that their reasonable needs continue to be met."

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Canadian Teachers Swoop On Debt Group Lowell

By Mark Kleinman, City Editor

A giant Canadian pension fund has swooped to buy a big stake in Lowell Group, one of Britain's biggest consumer debt collection agencies.

Sky News understands that Teachers Private Capital (TPC), an investment arm of one of Ontario's municipal retirement schemes, signed a deal on Friday to acquire just over 35% of Lowell's shares.

The deal values the debt collection group at around $1.6bn, and returns a large chunk of cash to TDR Capital, the private equity firm which has owned Lowell since 2011.

An announcement is expected on Monday as a consequence of Lowell's publicly-traded debt securities.

Lowell specialises in debt recovery and other credit management services, a sector which has attracted frequent attention from private equity funds.

The company, which pledges to take "a fair, sensitive and ethical approach to debt recovery", competes with rivals such as Cabot Credit Management and Arrow Global, which floated on the stock exchange last October.

The Financial Conduct Authority assumed responsibility for regulating consumer credit providers earlier this year.

TPC, which is also a significant investor in TDR's funds,  is understood to have been attracted to Lowell's growth prospects and its compliance record with UK financial regulators.

The deal adds Lowell to a portfolio of UK investments made by Ontario's vast teachers' pension fund, which include Camelot, the National Lottery operator; Burton's Biscuits, the owner of Jammie Dodgers and Wagon Wheels; and Busy Bees, the nurseries group.

TPC's investment comes ahead of a potential stock market flotation of Lowell, which could take place as soon as next year.

TDR and TPC declined to comment.

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Malaysia Airlines Launches 'Complete Overhaul'

Malaysian officials have released a share buy-back plan to take Malaysia Airlines off the stock market, as part of a "complete overhaul" of the embattled carrier.

State investment firm Khazanah Nasional, which owns 69% of the airline, wants to purchase the majority shareholding from investors ahead of a delisting.

The move comes as the company continues to reel from the dual effect of losing two aircraft this year - the disappearance of MH370 and the crash of MH17 in eastern Ukraine.

The airline struggled with profitability for several years ahead of this year's disasters.

Khazanah Nasional has proposed buying the outstanding stock at 27 sen (£0.0475) a share, 29% higher than the three-month average.

The complete takeover would cost 1.38bn ringgit (£255m). Shares were suspended in Kuala Lumpur ahead of the announcement.

"The proposed restructuring will critically require all parties to work closely together to undertake what will be a complete overhaul of the national carrier," Khazanah said in a statement.

"Nothing less will be required in order to revive our national airline to be profitable as a commercial entity and to serve its function as a critical national development entity."

Before this year's disasters, the carrier's financial performance was among the worst in the industry, putting a question mark over its future.

Some industry experts recently voiced concern of its ability to survive without a major cash injection from the Malaysian government.

Branding specialists have said Malaysia Airlines must take dramatic steps such as replacing its senior management and a name change.

As a state-owned flag carrier, the airline must fly unprofitable domestic routes.

Its workforce has a strong union presence that has resisted operational changes, amid the rise of low-cost regional rivals.

Khazanah said the plan required approvals from regulators and Malaysia's finance minister.

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Co-op Group Reveals Major Restructure

The struggling Co-operative Group has announced plans for reform of its governance structure.

It said the executive board would be reduced from the current 18 positions to 11, as soon as new rules are registered.

It also said the smaller board would consist of members "qualified to lead an organisation of its size and complexity".

The plan has been formulated to help protect against de-mutualisation of its assets.

The move comes after "disastrous" results for the mutual.

Last year a £1.5bn capital black hole was discovered in its banking arm.

In April, the group revealed a 2013 annual loss of £2.5bn, on the back of a loss of £529m in 2012.

In detailed proposals to be released, the Co-op also plans to give the group's members appropriate powers to hold the board properly to account for performance and ethics.

It said recruitment of new board members would begin immediately.

The proposals, which follow a period of consultation with the society's members, have been reflected in a proposed new rule book and will be put to a vote at a special general meeting on August 30.

Co-op Group chairwoman Ursula Lidbetter said: "These governance reforms represent the final crucial step in delivering the necessary change to restore the group and return it to health.

"This has been a process built on co-operation, focusing above all on creating a society where every member has a voice in shaping the group's future.

"I would like to thank our members for their engagement in building a governance structure that strengthens the society and enhances member engagement and our unique democracy."

More follows…

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British Investigator Goes On Trial In China

A British investigator arrested in China after carrying out a probe for pharmaceutical firm GlaxoSmithKline (gsk) has gone on trial for breaching the country's privacy laws.

A message posted on a state social media account said Peter Humphrey had accepted the charges against him on the first day of his hearing in Shanghai.

Humphrey, 58, along with his naturalised American wife, Yu Yingzeng, 60, are accused of illegally obtaining Chinese citizens' personal information and selling it to companies including GSK.

The charge carries a maximum sentence of three years in prison.

The pair were arrested shortly after completing an internal investigation for GSK - which is now the focus of a separate corruption investigation.

Peter Humphrey reportedly accepts the charges against him

According to the court's official blog, the couple's company, ChinaWhys, purchased phone records, household registration details, and customs information over a four-year period.

Judge Yu Jian said: "The two defendants paid 800 yuan (£80) to 2000 yuan per piece of information. In total, they bought 256 pieces of information."

When asked if the charge was accurate, Humphrey reportedly said: "Generally it looks correct, but in terms of specifics I do not know the Chinese law well, so I cannot comment."

According to an official online report of court proceedings, Humphrey said during cross-examination: "These records are only a small part of our business. Most of our investigations are done using public information and our own wits.

Humphrey was shown on state TV last year after his arrest

"For some projects, we needed to investigate people's backgrounds.

"We asked these other consulting companies to obtain household registration information and we paid them a service fee. We did not pay them for the information."

Humphrey's work for GSK was not mentioned.

The son of Peter Humphrey expected his parents to plead guilty despite lingering doubts of their guilt.

"I expect my parents to plead guilty. Whether they actually committed an offence or not, it's a grey area, I don't know," Harvey Humphrey told Sky News on Thursday.

"They may have done, but it's a small charge and pleading guilty is a good idea as you normally have a more lenient sentence as a result, and trying to plead not guilty and getting a defence for that in China is very difficult."

Humphrey's son expected his parents to plead guilty despite lingering doubts of their guilt.

A covert sex tape of GSK's top boss in China was filmed last year

"I expect my parents to plead guilty. Whether they actually committed an offence or not, it's a grey area, I don't know," Harvey Humphrey told Sky News on Thursday.

"They may have done, but it's a small charge and pleading guilty is a good idea as you normally have a more lenient sentence as a result, and trying to plead not guilty and getting a defence for that in China is very difficult."

In January last year an email was sent to GSK's UK-based chief executive containing a sex tape of GSK China's general manager Mark Reilly and his Chinese girlfriend.

The email accused Mr Reilly of being behind corruption in the company's China operation.

ChinaWhys was tasked with finding out who had sent the email and how the video had been filmed.

GSK suspected a former senior staff member with political connections, but who has denied being the whistleblower.

Humphrey and his wife were arrested shortly after the report was delivered in June, and the GSK bribery investigation was opened.

The trial continues.

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Bosses Who Fix Energy Prices Face Prison

Executives who rig wholesale gas and electricity prices face up to two years in jail under Government plans aimed at driving down the cost of household bills.

Those who fix prices at an artificial level would be committing a criminal offence if the Department of Energy (DECC) gets its way.

Such behaviour is currently investigated by regulators, whose powers extend only to fines.

Energy Secretary Ed Davey said: "Manipulating the energy market is absolutely unacceptable, and these proposals provide a much stronger deterrent - more in line with the approach taken in the financial markets.

"The Government is doing everything it can to help consumers by increasing market competition to drive prices down."

The Big Six energy companies

The move is a response to rising consumer bills and widespread mistrust of the so-called Big Six electricity and gas suppliers

Richard Lloyd, executive director of Which?, said: "Anyone found to be manipulating wholesale energy markets deserves to have the book thrown at them.

"Rumours of market abuse do nothing for consumer confidence in the energy market so we support the Government tightening the rules and bringing in stiffer penalties to deter wrongdoing."

Under the plans it would become a crime to make misleading claims or conceal facts about wholesale energy prices in order to manipulate the market - especially if such an act could affect competition.

Anyone who uses insider information to buy or sell on the wholesale market would also be committing a criminal offence.

The proposals are at consultation stage and could come into force across the UK in spring next year.

Their unveiling follows a study this week which showed rising energy bills was the top concern for households.

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L&G Sees Profit Rise On Pension Reforms

Legal & General (L&G) saw its pre-tax profit rise by 7% for the first half of the year.

The life insurance and pensions provider reported a profit of £636m, up from £594m for the same period last year.

The company credited an increase in demand for retirement products and said that Budget reforms to pensions would help boost earnings further.

In March Chancellor George Osborne made changes to allow people to access their pension pots when they turn 55, without having to buy an annuity.

L&G said the reforms would give greater flexibility to retirees as the company develops new products around the changes.

Group chief executive Nigel Wilson said: "These are strong financial results with dividends once again growing over 20% and a return on equity of 17.6%.

"Strong business performance across a well-diversified range of insurance, savings and investment markets underpins consistent earnings quality and dividend growth and enables us to respond positively to the ever changing political and regulatory landscape."

It comes after Sky News last week revealed that L&G is in talks about creating a £500m investment vehicle that will be used to finance major UK urban regeneration projects.

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UK House Price Average Rose 1.4% In July

UK house prices rose by a more-than-expected 1.4% in July, according to Halifax figures.

The rise takes the average price of a home in Britain to £186,322.

The British mortgage lender said house prices for the period were 10.2% higher than a year ago.

Compared to the previous quarter, the three months to July saw an increase of 3.6%.

UK house prices are on the up again following a monthly drop in June

The monthly rise follows a 0.4% drop in June as Halifax said month-by-month movements remain volatile.

Since December there have been four monthly price increases and four price falls.

Stephen Noakes, mortgage director at Halifax, said: "While supply remains low, housing demand continues to be supported by a continuing economic recovery, growth in employment, improving consumer confidence and low mortgage rates."

Last month a Halifax survey found that 70% of British adults predicted the average UK house price will rise over the next year.

The number of people who said rising property prices will be a barrier to buying rose by six points to 35%.

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Standard Life Profit Rises 12% To £339m

Standard Life has reported a 12% rise in its operating profit for the first half of the year.

The insurance and pension group's operating profit before tax rose to £339m as more UK workers were automatically enrolled in company pension schemes.

The group said it expects to add more than 300,000 new auto-enrolled customers this year.

Chief executive, David Nish said: "We have an excellent track record of succeeding in evolving markets and we are well placed to deal with the far-reaching reforms to the savings and retirement income rules, announced earlier this year by the UK Government."

It comes as the Scottish company reiterated its position on the upcoming referendum, saying there is still no clarity on the economic and financial concerns raised by it.

The company, which was one of the first to lay out contingency plans in the case of a 'yes' vote for Scottish independence, said it maintains its position.

In May, Standard Life said it would be prepared to move some of its operations out of Scotland if the nation voted in favour of a split from the United Kingdom.

The company said relocating parts of its business to England in the event of a 'yes' vote would be a measure taken to protect its market position.

Any relocation could put some 5,000 Scottish jobs at risk.

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