Monday newspaper round-up: Danske Bank, River Island, Sky, Drax
US firms are taking advantage of the cheap pound to snap up some of Britain’s most successful businesses at bargain prices, according to the latest mergers and acquisitions data. The value of deals involving US companies buying UK businesses more than doubled to £79bn in 2017-18 from £36.8bn in the previous year. The low value of sterling, which last week slumped to $1.30 in the wake of Theresa May’s post-Salzburg statement, has given American buying power a boost and allowed US firms to outbid rivals. – Guardian
Employee ownership schemes in large companies could result in almost 11 million workers being given up to £500 a year each, in plans to be expanded upon by the shadow chancellor on Monday. Under the scheme, every company with 250 or more employees will be expected to create an “inclusive ownership fund” (IOF) under a future Labour government, John McDonnell will say. – Guardian
City regulators have been urged to investigate UK links to a €200bn (£180bn) dirty-money scandal at Denmark’s largest lender Danske Bank. Anti-corruption groups told the Telegraph that the Serious Fraud Office (SFO) and Financial Conduct Authority (FCA) should investigate the case and consider stripping Danske of its UK banking licence. – Telegraph
Profits at River Island have plunged 40pc as the chain invested in the business to cope with the shift in shopping habits online. Ben Lewis, the chief executive, said sales were moving to its website, but shops remained a “very important part” of the customer experience. Operating profits sank to £80.6m for the year ending December 2017, down from £135.7m the year before, as it invested in stock, distribution and technology to underpin its multichannel offer. Sales edged 3pc lower to £944.5m. – Telegraph
Jeremy Darroch, Sky’s chief executive, is in line to receive £50 million after the sale of the satellite broadcaster to Comcast for more than £30 billion. America’s largest cable television provider prevailed this weekend in a protracted takeover struggle against 21st Century Fox, which already owns 39 per cent of Sky and was bidding with Disney’s backing to take full control. – The Times
Drax is in talks to buy Scottish Power’s gas and hydroelectric power plants in its latest attempt to diversify beyond its main North Yorkshire power plant. The FTSE 250 energy company derives the vast majority of its profits from Britain’s biggest power station, but it is trying to broaden its business. – The Times