Brookfield, which owns 78 million square feet of offices in North America and Australia, said on Tuesday the six sites it was buying included skyscraper 99 Bishopsgate and a development plot, Principal Place, in the City of London financial district.

“We accept that it is a difficult period at the moment but long term we have every faith in the London marketplace,” said Martin Jepson, senior vice president for investment, who joined Brookfield from Hammerson last August.

“New starts and development have just stopped, so there is no threat of major oversupply coming forward unless there is a major dumping of secondhand stock on the market place … In the medium to long term there are prospects for growth in the City of London” he told Reuters.

Office developers have struggled to find tenants in central London over the past year amid concerns about economic weakness.

Law firm CMS Cameron McKenna pulled out of talks to pre-let a third of Principal Place in January while other skyscraper schemes have been put on hold after fruitless searches.

Jepson said Brookfield would start construction on the 485 million pound Principal Place scheme once it found a pre-let and was eyeing tenants from the financial services, media and professional services sectors.

Brookfield, which already owns part of the 100 Bishopsgate skyscraper scheme in the City, was still looking for more sites as it wanted a London office portfolio complementary to those it has in other major financial centers, Jepson said.

The deal also sees Hammerson reaching its goal of becoming a specialist retail property company. It said its remaining portfolio would be 97 percent retail and it would look to reinvest the proceeds in shopping centers, retail parks and designer outlets.

Hammerson said it expected to receive a payment of 329 million pounds for 99 Bishopsgate, Principal Place and two smaller properties by September 30. The sale of the other buildings, 125 Old Broad Street and Leadenhall Court, will complete by June 2013 for 189 million pounds.

The company, which owns and holds stakes in some of Britain’s largest malls, such as the Bullring in Birmingham and Brent Cross in North London, first put its office portfolio up for sale in February.

Hammerson (HMSO.L: Quote, Profile, Research, Stock Buzz) were up 2.4 percent at 427.6 pence at 0905 GMT.

($1 = 0.6382 pound)

(Editing by Dan Lalor)

The company, which announced plans to sell its London
offices earlier this year, said its remaining portfolio would be
97 percent retail following the deal.

Hammerson said it expects to receive a payment of 329
million pounds for 99 Bishopsgate, Principal Place and two
smaller properties by September 30. The sale of the other
buildings, 125 Old Broad Street and Leadenhall Court, will
complete by June 2013 for 189 million pounds, it added.

The total proceeds of 518 million pounds are 5 percent above
proforma book value, Hammerson said.

“We have been able to achieve our goal of becoming a pure
retail business earlier than anticipated by arranging a single
transaction for the majority of our London offices,” Chief
Executive David Atkins said.

“At this point in the cycle we can reinvest successfully to
increase scale in our three chosen areas of prime shopping
centres, convenient retail parks and premium designer outlets,”
Atkins added.

The company’s first-half sales forecast indicates growth of
about 9 percent in the latest second quarter, down from a much
higher rate of 21 percent in the first quarter.

The slowdown in the second quarter of 2012 is in stark
contrast with last year, when the rate of underlying growth had
accelerated to around 22 percent from about 18 percent in the
first quarter.

“All regions have slowed into the second quarter (2012),
especially North America,” analysts at Bank of America Merrill
Lynch said.

“Aggreko is a ‘good news stock’ and the market tends to
expect an upgrade (from the company) …Although this is no
downgrade, it could weigh against the stock,” the analysts
added.

Shares in the company, which provides generators to cover
electricity shortfalls or power live events, were down 4.4
percent to 2,065 pence by 0921 GMT, and were the top losers on
Britain’s blue-chip FTSE index.

Aggreko, however, said it would deliver good growth in 2012,
and increased its fleet investment for the year by 50 million
pounds ($77.7 million) to about 415 million pounds, citing
increased order intake at its International Power Projects (IPP)
business, which is likely to top 700 megawatt in the first half.

Analysts at Citi said growth at IPP should re-accelerate in
the second half given ‘excellent’ order intake, but warned the
company’s Local Business unit could remain more subdued, in line
with previous guidance.

Aggreko said the weakening macroeconomic environment would
reduce the underlying rate of growth at its local business unit
in the second half, but added this would be partly offset by the
impact of the London Olympics, a contract the company values at
about 50 million pounds.

The company has in the past powered other high-profile
sporting events, including the soccer World Cup, the Vancouver
Winter Olympics and the Asian Games in 2010.

Aggreko currently expects underlying sales to grow by about
15 percent in the first half and underlying trading profit to
rise by around 20 percent.

For the same period a year ago, Aggreko had reported a
trading profit of about 127 million pounds on sales of 637.2
million pounds.

Shell said on Thursday it was extending the deadline for Cove shareholders to accept its 220 pence per share cash offer by another two weeks until June 27 after receiving valid acceptances for just 4.8 percent of the shares by the time of the last offer period closing at 0800 EDT on Wednesday.

Analysts still believe that Shell will increase its bid to trump PTT’s 240 pence per share offer worth $1.9 billion.

Shares in Cove, which have already been trading well above PTT’s offer were up 0.2 percent at 264.5 pence by 0500 EDT, valuing the business at just under 1.3 billion pounds ($2 billion).

“I think Shell will come back,” Investec analyst Stuart Joyner said. “They could possibly pay up to 300 pence per share, possibly more, given the recent discovery.”

Cove’s partner in Mozambique, U.S. firm Anadarko Petroleum Corp (APC.N: Quote, Profile, Research, Stock Buzz), earlier this week announced a further major offshore gas find there.

Analysts at Mirabaud Securities said Shell’s move to extend the offer deadline reinforced suspicions that the company was working on an improved offer.

A 300 pence per share offer would value Cove at just under 1.5 billion pounds, according to Thomson Reuters data.

“If Shell comes back with a higher offer, that would probably finalize it,” Joyner said. “I don’t see PTT coming back a third time … I would imagine a 300 pence per share offer would probably finalize this.”

Meanwhile the head of Africa-focused French oil producer Maurel et Prom (MAUP.PA: Quote, Profile, Research, Stock Buzz) on Thursday dismissed speculation that Shell (RDSa.L: Quote, Profile, Research, Stock Buzz) had also approached it about a possible takeover.

LUCRATIVE EAST AFRICA

East Africa is set to become one of the world’s largest gas exporters supplying energy-hungry Asia, after a string of major discoveries across Mozambique and Tanzania, which has attracted the interest of major oil firms.

Cove’s main asset is an 8.5 percent stake in the finds made by Anadarko off the coast of Mozambique, where plans are afoot to build large plants to ship the gas abroad as liquefied natural gas.

Analysts said an announcement on Thursday by Statoil (STL.OL: Quote, Profile, Research, Stock Buzz) and ExxonMobil (XOM.N: Quote, Profile, Research, Stock Buzz) about the discovery of another large gas deposit off the coast of Tanzania only added to the attractions of the area for Shell.

“Shell are very keen to get into the East African gas story,” Investec’s Joyner said. “Shell is effectively locked out of the key areas of movement (in East Africa).”

Joyner said Shell had to make an acquisition to enter East Africa, but added that other companies with positions there, including Statoil, Exxon, Anadarko and Italian oil group Eni (ENI.MI: Quote, Profile, Research, Stock Buzz), were unlikely to sell.

“That’s really why they are going for Cove so aggressively.”

The bidding war for Cove started after Shell’s initial $1.6 billion offer in February was trumped by PTT’s offer of $1.8 billion.

The oil major then raised its offer to match PTT’s bid, but this attempt too was thwarted by PTT, which countered with a $1.9 billion, 240 pence per share bid in May.

(Editing by Elaine Hardcastle and Greg Mahlich)

Poor weather has hit sales across Britain’s retail industry in recent weeks, exacerbating an already tough situation as shoppers struggle with rising prices, muted wages growth and government austerity measures.

Home improvements group Kingfisher (KGF.L: Quote, Profile, Research) also reported a lower first-quarter profit on Thursday, as the rain put shoppers off buying seasonal ranges.

“Retail sales in the financial year 2013 have been very disappointing so far,” said Halfords, which trades from 467 shops in Britain and Ireland and 260 Halfords Autocentres.

The company said that although it had not seen the usual seasonal demand for cycling and outdoor leisure products, some of those sales were deferred rather than cancelled, and it expected a stronger performance as the year progresses.

“The release was not surprising given the very bad weather and the impact it had to all retailers in the UK but investors will likely be reluctant to accept management’s optimism at face value before they witness any positive results,” analysts at Barclays said.

Halfords shares were the top mid-cap .FTMC fallers in London and were down nearly 8 percent at 255 pence in mid-morning trade, their lowest in nearly two years.

Peel Hunt analyst John Stevenson cut his rating on Halfords shares to ‘sell,’ and noted the company had now delivered seven downgrades over eight quarters.

“Our ‘sell’ stance is not a reaction to current trading, rather a reflection of our concerns over the medium-term outlook,” Stevenson said.

“Lacking clear growth drivers beyond a potential Olympic fillip, we have yet to gain confidence that we have hit the nadir.”

Analysts said Halfords’ comments on the outlook would likely prompt downgrades to profit forecasts.

Full-year underlying profit for the year ended March 2012, was 92.2 million pounds ($143.2 million), in line with estimates, according to Thomson Reuters I/B/E/S.

Sales were down about 1 percent at 863 million pounds.

(Editing by Rosalba O’Brien and Mark Potter)

(Reuters) – Cookson Group Plc (CKSN.L: Quote, Profile, Research) may break up into its two major divisions in an effort to improve shareholder returns and is to admit a partner from activist shareholder Cevian to its board, the British industrial materials supplier said.

The plan confirms break-up talk that has circulated for months since Cevian began building its stake, and pressure on the board built further on Thursday as almost a third of shareholders rebelled against the company’s executive pay proposals for 2012.

Christer Gardell, managing partner of Sweden-based Cevian Capital, which owns about a fifth of Cookson shares, will join its board as a non-executive director, Cookson announced, ahead of its annual general meeting on Thursday.

The review will look into a potential demerger of its two main divisions — engineered ceramics and performance materials — and comes a few months after it sold its loss-making U.S. precious metals unit to Berkshire Hathaway (BRKa.N: Quote, Profile, Research) (BRKb.N: Quote, Profile, Research).

“We believe that this strategically makes sense, especially given the individual nature of the divisions,” Numis Securities’ analyst Scott Cagehin.

DEMERGER PLANS WELCOMED

Despite opposition to Cookson executives’ remuneration, analysts welcomed the proposed demerger and the company’s shares rose 9 percent to 701 pence at 10.21 a.m.

The engineered ceramics division, whose products are used in the glass and solar industries as well as by steelmakers and foundries, brought in revenue of 1.69 billion pounds last year.

The performance materials division, about half that size in revenue, supplies materials and chemicals to the electronics, automotive, industrial and construction markets.

“Management believes that following the substantial improvement at performance materials, the divisions can potentially be separated, which should drive further focus and performance,” Alex Toms of BofA Merrill Lynch said.

Cookson said a separation of the two businesses may cost between 50 million pounds ($79.59 million) and 70 million pounds.

STORMY AGM?

At Thursday’s AGM, 32 percent of proxy votes, voted against Cookson’s remuneration report, in protest at the structure of a 2009 long-term incentive plan. The report provides for a maximum payout of over 3 million pounds for Chief Executive Nick Salmon in 2012.

Earlier this month, one of Britain’s most powerful investor groups, The Association of British Insurers (ABI), flagged concerns over pay at Cookson, people familiar with the matter said.

Cookson drew criticism from ABI for the way it calculated shareholder returns, which in turn help determine management bonuses, the people said, following a 2009 rights issue.

Investor anger over pay and performance has been a hot-button issue of late, leading to big protest votes at Barclays, Xstrata and William Hill, and even prompting the departures of chief executives at London-listed AstraZeneca, Aviva, and Trinity Mirror.

Cookson’s shares have fallen over the past 12 months, and the company reported marginal profit growth for 2011.

But the industrial materials company’s stock has risen nearly 75 percent since January 2009, when it came out with a deeply-discounted 12-for-one rights issue as it struggled amid plunging steel markets — and at least one analyst said he sided with the management’s potential pay.

“Management has soldiered on through several lean years and we do not begrudge them the long-term incentive plan pay-out,” Oliver Wynne-James of Panmure Gordon said in a note on Wednesday.

(Reporting by Brenton Cordeiro in Bangalore and Adveith Nair in London; Editing by Joyjeet Das and Andrew Callus)

The vote comes a week after the company said Sly Bailey was
to step down as chief executive, after shareholders took issue
with her large pay package in the midst of falling profits and
sales.

On Thursday, the publisher, which also owns a host of
regional titles, said 45.89 percent of its shareholders voted
against its directors’ remuneration report in the face of
growing anger over executive pay.

A “shareholder spring” is spreading from Britain across
Europe as investors become increasingly hostile to big rewards
for directors in companies whose shares are flagging.

Bailey received almost 1.8 million pounds ($2.9 million) in
cash and share awards last year, while the company’s operating
profit fell 15 percent to 104 million pounds despite cost cuts
that included axing jobs and freezing salaries.

Earlier in the day, the company said it had been hit by the
launch of Rupert Murdoch’s Sun on Sunday in February, dragging
circulation revenue at its national titles lower in March and
April, compounding a prolonged slump in advertising.

It added that the trading environment was expected to remain
challenging for the remainder of the year with month on month
volatility in revenue trends.

The revolt at Trinity Mirror comes days after Aviva
chief executive Andrew Moss stepped down in the wake of similar
protests. Swiss bank UBS, Credit Suisse and
Barclays have also seen revolts over executive pay.

Company directors are expected to remain under pressure even
after the market downturn ends with investors and directors
saying the days of shareholders routinely rubber-stamping
company resolutions at annual meetings are gone.

SALES DROP

Trinity Mirror said earlier that revenue for the 17 weeks to
April 29 fell 4 percent as ad spending in its titles dropped 11
percent.

It said ndications pointed to revenue in May falling 5
percent as spending on advertising shrunk by 10 percent and
circulation revenue dropped 4 percent.

Trinity Mirror, like its rivals, has been battling falling
circulations and ad revenue. It has been turning to the
internet, but growth has not been fast enough to offset the
falling revenue from its newspapers.

Its Sunday titles benefited from the closure of rival Sunday
title News of the World last summer, but that gain evaporated
when Murdoch launched a Sunday edition of his Sun tabloid at the
end of February.

Circulation revenues at its national titles were up 10
percent in January and February, but fell 3 percent in March and
April following the launch of the competing title.

But it said at least 15 million pounds of cost savings would
support profitability, and it would continue to reduce debt
after a 24 million pound payment cut in the period cut the level
to 197 million pounds.

Cash-rich Chinese investors are picking up European assets
as the region grapples with a sovereign debt crisis, slowing
economic growth, depressed stock market valuations and a dearth
of deal-making capacity among potential buyers closer to home.

Fashion retailer YGM’s deal comes barely a week after
Chinese state-owned Bright Food agreed on May 3 to buy a
controlling stake in privately held Weetabix, the 80-year-old
breakfast cereal maker that coined the slogan “Have you had your
Weetabix?”

Other recent high-profile Chinese acquisitions include
machinery maker Shandong Heavy Industry Group’s deal to take
over debt-laden Italian luxury yacht maker Ferretti.

The 161-year-old Aquascutum, which has dressed Britain’s
Queen Elizabeth and former prime ministers Winston Churchill
and Margaret Thatcher, is the latest high-profile fashion name
hit by the country’s retail downturn.

Founded by tailor John Emary in 1851, Aquascutum’s brand
rose to fame before celebrity advertising became mainstream,
helped by its long association with the British royal family.

After King Edward VII first bought an Aquascutum coat in
1897, the slick and expensive rain coats became popular with
aristocrats, political leaders and movie stars. The likes of
Humphrey Bogart were often seen wearing the iconic brand.

But in recent years it has struggled, recording financial
losses and teetering on the brink of failure, while bigger
British luxury companies like Burberry and Mulberry
became global brands.

Hopes for a turnaround were also hampered by the fact the
company’s royalty rights for the Asian market, a high-growth
area for luxury goods, have belonged to YGM since 2009.

YGM – which also distributes men’s and ladies’ wear under
brands including Michel René, Guy Laroche, Charles Jourdan,
Ashworth, and J.Lindeberg – said the acquisition was beneficial,
given the substantial potential for Aquascutum’s development.

Trading in YGM shares was suspended earlier on Thursday.

FRP Advisory – which said in April that two of its partners
had been named administrators of Aquascutum – said the sale,
which includes the UK stores, concessions and head office
operations, would safeguard jobs of more than 100 employees.

FRP added they were continuing to deal with interested
parties regarding a sale of the factory based in Corby, which
they hope to achieve within the next two weeks.

Retailers in China, including menswear group Trinity Ltd
, have been snapping up high-end European brands as
Chinese consumers demand better quality in everything from suits
and handbags, to shoes and yachts.

The Chinese government has said it wants the country’s
companies to buy top brands as a shortcut to global success.

Reed, which publishes scientific, business and academic
information, said on Tuesday first-quarter growth rates were
consistent with 2011 trends, echoing comments it made in
February along with stronger 2011 results.

Citi analyst Thomas Singlehurst said in a note: “Overall the
reaffirmation of full-year outlook should be welcomed as it
signals full-year numbers should be well set.”

“We expect limited change to full-year consensus.”

Analysts currently expect Reed to report a pretax profit of
about 1.4 billion pounds ($2.3 billion) in 2012, on sales of
about 6.1 billion, according to a Thomson Reuters I/B/E/S poll.

London-listed shares in the company were up 1.45 percent at
523 pence by 0825 GMT.

Reed said it expects modest underlying revenue growth at its
Elsevier business, which provides science and health information
and accounts for 47 percent of group profit, on research volume
growth and higher demand for electronic products and tools.

Underlying revenue growth at its LexisNexis Legal &
Professional division – which competes with Thomson Reuters
Westlaw – remained marginally positive during
the quarter despite subdued market conditions, Reed added.

It, however, warned that the scope for short-term underlying
sales growth or margin expansion at the unit – which accounted
for 14 percent of 2011 group profits and returned to revenue
growth just last year – remained limited.

Reed said good growth in usage and new sales of online
research and litigation tools continued in the U.S., while print
products and web based listings declined. In international
markets, the format migration was reflected by declining print
sales and good growth in online solutions, it added.

“We expect some focus on the commentary on the Legal &
Publishing business,” Citi analyst Singlehurst said.

“In practice, this was mentioned at the full-year 2011
results, however its strident reiteration may dampen enthusiasm
about growth in the medium-term,” the analyst added.

The deal comes a few weeks after IPR turned down an earlier offer GDF Suez had made to buy out the remaining 30 percent of the company it did not already own, saying it was too low.

In order to finance the deal, GDF said it would tap bank lenders and sell an additional 3 billion euros worth of assets located primarily in mature markets, on top of 10 billion euros in assets it had originally planned to sell by 2013.

Banking sources said GDF was raising a new 6 billion euro syndicated loan facility, arranged by the company itself, from its relationship lenders. The company declined to comment.

GDF Suez conducted the acquisition in two stages, keen to prevent its debt from increasing too significantly and to preserve its A credit rating. It has completed two thirds of its earlier asset disposal plan.

It estimated that increased profit contributions from the takeover would lift its earnings by as much 9 percent to 4.2 billion euros.

Greater competition and regulation in mature energy markets in Europe, bogged down by the economic crisis, have steered GDF Suez’s focus to developing markets where energy needs are growing fast.

The International Energy Agency forecasts overall energy demand to grow by 40 pct between 2009-2035, the bulk of which is seen outside industrialized nations.

The purchase of IPR will boost GDF Suez’ presence in regions where energy demand is growing, such as South America, the Middle East, South-East Asia and Australia, and buying out the remaining stake will simplify the group’s structure.

The IPR acquisition in 2010 added 35 gigawatts in electricity production capacity worldwide, or the equivalent of 35 small nuclear reactors, to a total of 117 GW today at GDF Suez.

Some 15 GW are currently being built and International Power’s pipeline of large projects is expected to deliver a contribution to earnings between 2014 and 2017.

The 418 pence per share offer, at a 7 percent premium to an earlier approach by GDF, values IPR at about 21.3 billion pounds ($33.8 billion).

GDF said the offer valued the entire issued and to be issued share capital of IPR at about 22.8 billion pounds, assuming full conversion of IPR’s Convertible Bonds and exercise of share options.

In the medium term, GDF intends to increase its guidance for investments in fast growing markets to 40 to 50 percent of the total, up from 30 percent now, helping the group with its target to build 90 MW in installed capacity out of Europe by 2016.

“It represents a significant shift in GDF Suez and to a certain extend a change of identity,” the group’s Chief Executive Officer Gerard Mestrallet told a news conference.

Analysts have said a deal would make good strategic sense for GDF given IPR’s strong growth prospects.

IPR said the offer, which will also see its shareholders getting a 6.6 euro cent dividend, was attractive, given the company’s position in international power generation markets and its growth potential.

The company had earlier this month rejected a 390 pence per share preliminary approach by GDF that valued the company at 19.9 billion pounds, calling it too low.

IPR shares were up 3.3 percent at 417.2 pence in London, while GDF added 5 percent in Paris to 18.85 euros at 1321 GMT, outperforming a 2 percent rise in the wider utilities index .

“We had thought that there would be an agreed offer at a level closer to our previous price target of 417 pence or fractionally higher and the recommended offer is neatly within this ballpark,” Angelos Anastasiou, analyst at Investec wrote in a research note.

GDF completed its acquisition of 70 percent of IPR in February 2011, creating the world’s largest independent power producer. At the time it agreed not to bid for the remaining shares for 18 months, a lock-up which expires in August.

GDF Suez can buy out the remaining stake sooner with the agreement of the British group’s independent non-executive directors.

($1 = 0.6295 British pounds)

($1 = 0.7644 euros)

(Additional reporting by Muriel Boselli, Nina Sovich in Paris and Isabell Witt in London; Editing by Paul Hoskins and Philippa Fletcher)