The former chief executive of Barclays (BARC) has been acquitted of charges that he paid secret fees to Qatar to help the bank to avoid a government bailout. The decision that there was insufficient evidence against John Varley, after a high-profile fraud trial, marks a failure of the only attempt in Britain to prosecute a senior banker for the mistakes of the financial crisis. Mr Varley, 63, was acquitted on two charges of fraud over fundraisings in 2008, in which Barclays tried to raise money from investors around the world to remain in private ownership. Royal Bank of Scotland and Lloyds, its rival British banks, had to take huge cash injections from the government, leaving them with large taxpayer-controlled holdings.
Sorrell’s basket maker lined up for sale. The world’s largest advertising company is set to jettison the shopping basket maker that Sir Martin Sorrell, its former boss, used to found it. WPP (WPP) is finalising the sale of the Kent-based kitchenware maker to its management team, with a deal expected within days, according to industry sources. With an annual revenue of less than £1 million, Wire & Plastic Products will generate an inconsequential sum for its owner, worth £12.5 billion. Nevertheless, the disposal is a symbolic moment for WPP, given the offshoot’s pivotal role in the company’s history. In 1985 Sir Martin bought a controlling stake in Wire & Plastic Products, a listed maker of wire baskets and teapots. He renamed the company WPP and over the next three decades built it into a FTSE 100 advertising and marketing powerhouse. A relentless dealmaker, in 1987 he launched a hostile $566 million takeover of J Walter Thompson, the Manhattan agency. Two years later, the former Saatchi & Saatchi finance director acquired Ogilvy & Mather, another prominent American advertising agency.
Sports Direct tackles five-a-side firm’s board over accounts error. Goals Soccer Centres (GOAL) faces a clash with its biggest shareholder at its annual meeting after threatened to vote against the reappointment of the five-a-side operator’s entire board. The sports chain controlled by Mike Ashley, 54, the retail tycoon, issued a statement saying that it had lost confidence in the six-strong board over its handling of the discovery in March of VAT liabilities of at least £12 million. It accused Goals of a “lack of transparency”. Sports Direct, which has an 18.92 per cent stake in the business, has called for Goals to agree to the appointment of Kroll, the corporate investigator, to conduct “an independent and cradle-to-grave report” into its historical treatment of VAT and its continuing discussions with HM Revenue & Customs.
A British maker of semiconductor materials has warned that the fallout from America’s ban on Huawei has been much more severe than expected. IQE (IQE) said that its revenues would be significantly lower than a previous forecast because the crisis engulfing the Chinese technology group had led to “unprecedented” upheaval in the semiconductor industry. Drew Nelson, 64, its founder and chief executive, said yesterday that the impact of the restrictions on Huawei had inflicted far more damage than he had anticipated. IQE now expects revenues in the second half of the year to be between £140 million and £160 million, compared with previous City estimates of £175 million.
The City watchdog has fined Bank of Scotland £45.5 million for failing to report suspicions of fraud at the Reading branch of HBOS and for omitting to inform the regulator of allegations raised by two police forces. The Financial Conduct Authority imposed the penalty after concluding that Bank of Scotland, now owned by Lloyds Banking Group (LLOY), had not been “open and co-operative” with the Financial Services Authority, the regulator at the time, and had failed to disclose information appropriately. It is the biggest fine that the authority has levied for this type of breach and marks the latest twist over a fraud that took place between 2003 and 2007. The scandal involved companies being damaged or destroyed when consultants linked with a Halifax Bank of Scotland “turnaround” unit asset-stripped their businesses and stole from the bank. The proceeds of the fraud financed luxury holidays and prostitutes.
Leading mobile phone operators are facing allegations of price-fixing and collusion as part of a £1 billion High Court claim over the collapse of Phones4u. Ronan Dunne, the former boss of O2, made “inappropriate” attempts to discuss prices and smartphone sales plans with Olaf Swantee, the former boss of EE, according to claims filed by EE. EE, BT Group (BT.A), O2 and Vodafone Group (VOD) are defending themselves against allegations by the administrators of Phones4u that they colluded, triggering the retailer’s collapse in 2014. Mobile phone networks cut ties with the retailer shortly before its demise and Phones4u was “not viable” without their support, PWC, its administrator, found. Phones4u collapsed with 550 stores and concessions and 5,596 staff. Vodafone, EE and Dixons Carphone took over more than 350 stores and more than 2,000 employees were transferred.
Analysts join dots to name Apple as costly Nanoco Group (NANO) contract loss. A nanotechnology company whose products are used in high-end television sets lost four fifths of its value yesterday after the defection of a key customer — believed to be Apple. Nanoco, which creates technology to make images appear crisper on screens, revealed that an unnamed American customer would not renew its contract when it expired at the end of the year. The Manchester-based company said that the decision to end the relationship was “wholly unconnected to the performance of our materials and our service delivery”.
The search for a new chief executive of Domino’s Pizza Group (DOM) suffered a setback yesterday when the frontrunner appeared to rule himself out. Andrew Rennie, head of European operations at Domino’s Pizza Enterprises, the Australian-listed Domino’s franchisee, had been tipped to take over from David Wild as chief executive of its London-listed cousin. Although industry sources had confirmed that Mr Rennie, 51, was in prime position, Domino’s Pizza Enterprises insisted yesterday that there was “no substance to that speculation”. Mr Rennie said: “As a senior executive in this business and a significant holder of [Domino’s Pizza Enterprises] shares, I am invested in our future and look forward to delivering on the growth plans we have outlined to the market.”
Ocado Group (OCDO) received a special delivery of its own after analysts at Citigroup upgraded the online grocery group in a note. The Citi team lifted their price target for Ocado from £13 to £14.50, calling it a world leader in the online grocery market and picking out the Ocado Zoom venture, which delivers orders to households in less than an hour and is being tested in west London. With Ocado having struck delivery deals with retailers including Marks & Spencer in Britain, Kroger in the United States and Coles in Australia, the analysts said that they were confident that it would soon agree more and would increase market share more rapidly than rivals. The broker believes that the company could double its share of the online grocery market to 30 per cent.
