Sat. Nov 27th, 2021


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LV, the mutual insurer formerly known as Liverpool Victoria, continued its late public relations assault in defense of its planned sale to private equity group Bain Capital this morning.

LV was accused of doing too little to sell the transaction to members, without spelling out why a £ 100 installment each must persuade them to relinquish their membership rights and sell them to Bain.

This morning, LV set out why he believes “business as usual” no longer works, and the future benefits that members may accrue. It said it estimated that the Bain deal would result in £ 212 million of capital being available for distribution to members, in addition to the £ 404 million that LV plans to distribute to them over time from the already completed sale of his general insurance business to Allianz.

Doing so alone would mean more risk for payouts to members and a need for further investment, LV argued. There are just over two weeks left for members to vote on the agreement.

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Briefly

BHP has finalized an agreement to merge its petroleum division with Woodside, which takes on the world’s largest mining group from the oil and gas industry. BHP investors will receive shares in Woodside as payment for the sale of the oil and gas business.

Two of Hochschild Mining’s mine was threatened with closure by the Peruvian government on environmental grounds, with the miner promising to “vigorously defend his position and take all necessary steps” to protect his position. It argued that the government’s actions were “illegal”. The mines account for about two-thirds of Hochschild’s annual gold and silver production.

HSBC struggles to convince the Big Four that it’s worth bidding for his audit contract, Michael O’Dwyer and Tabby Kinder report, even though it could be worth $ 1 billion in a decade. The bank will postpone its tender for tender next year, they report, but with the incumbent PwC HSBC, which apparently plans to bid for another ten years and will find lucrative consulting work at stake, may find it difficult to arouse interest.

And CEO pays in the FTSE 100 fell by almost a tenth this year, according to analysis by PwC, as companies kept executive rewards in check during the pandemic. The head of the British business correspondent Daniel Thomas has the full story here.

Beyond the square mile

KKR has a buyout offer of € 33 billion for Telecom Italia after two profit warnings weakened the group’s position over the course of three months, we correspondents report. Telecom Italia said the US buyout fund offered a 45 percent premium to the company’s closing share price on Friday, valuing its equity at € 10.7 billion. The bid will depend on the support of the board and the Italian government, which has a veto on a takeover. CVC and Advent also expressed interest.

Brussels plan to combat bank se use of cross-border permissions to access those I, our financial regulation team report, in a pinch for those who use the arrangements to mitigate the impact of Brexit. The new capital market regulation will suppress a patchwork of national arrangements, stopping almost all sales by banks from non-EU countries in the internal market. The full details are here.

Meantime global bank shares ready for their best year since 2009, George Steer reported, with lenders boosted by betting on higher interest rates and “extraordinary” transaction activity.

And a second day of sales has left Paytm s’n share price that shrinks a third below its issue price, Hudson Lockett reported from Hong Kong, which raised further questions about its IPO last week. Critics of the group, which has sold itself as India’s multi-purpose financial platform, say it has little competitive advantage as foreign competitors, including Google and Walmart-owned Flipkart, have eaten away at its market share of mobile payments.

Lex ask should you show me your salary and should I show you mine? Employers have both creditworthy and discreditable reasons for wage secrecy, they argue – while some recent research has shown that colleagues who shared salary information ended up earning less than a group.

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