Public to take 15% share in Direct Line IPO, a greater sum than any other UK floatation in at least the last five years. The details are still being finalised but RBS’s insurance arm is expected to raise £115million from the public. The float price was yesterday on track to be 175p, which would give a dividend yield of approx 7.5% and value the equity at approx £2.6billion – 1.1 times its tangible book value. FT business pg 1, The Times pg 40
Barratt performance nets CEO pay rise to £1.8million. Mark Clare, CEO of Barratt Developments has been paid £1.8m for 2012, up from £1.2m last year. His package includes a £956,000 performance related bonus and reflects the “significantly improved financial performance” of the company. Daily Telegraph Business pg4
The £30billion BAE merger between EADS has been shot down by Angela Merkel and now UK jobs are under threat. BAE is one of the UK’s largest employers and there are fears that unless the giant explores tie-ups with the US defence giants then the company could break up, threatening the company’s 140,000 jobs. The Times page 1 and 2, Telegraph Business Page 1,2.
‘Toxic’ pensions will halve payouts according to the Pensions Institute. Millions of workers in auto-enrolment pension schemes will see their retirement income halved by being forced into toxic old schemes with high charges. The Government’s flagship policy, which launched last week, obliges companies to enrol their staff into workplace pensions, giving up to 11million workers a private pension for the first time. However, the report warns that the large amount of work involved in auto-enrolling staff into specially-created low-cost pension schemes means nine out of 10 firms are more likely to place workers in pre-existing voluntary schemes, which charge fees up to six times higher. The difference could cut the amount workers are paid when they retire by 50%. Daily Telegraph pg 1 James Hall, FT pg 4,
AND: Women who flirt can do better in deals according to scientists. Women should use their feminine charm rather than appearing tough when negotiating with men. Women should avoid being too sexually overt, but appear friendly, authentic and interested in the man with whom they are dealing. Everywhere.