Standard Life is set to make a profit of more than £100m from its 7.9% holding in Corus as a result of Tata Steel's £4.3bn offer for the steelmaker, says the Daily Telegraph .
Fund managers at Standard Life are believed to have bought the stake in Corus at an average price of about 300p a share.
Tata Steel's 455p-a-share offer for Corus would represent a 50% return for Standard Life, however, the fund group is unhappy at the price agreed.
Standard Life on Friday described the offer from Tata as "lower than we would have expected the board of Corus to agree to" as merging the two businesses would lead to substantial savings, says the paper.
RETAIL INVESTORS will be warned of the risk of funds, under plans being devised by the investment industry in the wake of scandals over mis-selling of endowment mortgages and split-capital investment trusts, according to the Financial Times.
The Investment Management Association (IMA) is devising a way of explaining risks to retail investors with the aim of creating an industry-wide code of practice.
Nick Wells, chairman of the IMA's retail marketing group, said he hoped to have the plans ready to present to the Financial Services Authority (FSA) by the end of the year.
The plans are a response to concerns expressed by MPs on the Treasury Select Committee in 2004, suggesting investors in products such as split-capital investment trusts were unaware of the risks.
The TSC suggested a "traffic light" system giving green, amber or red ratings to investment products, but the industry rejected this as simplistic.
THE WHOLESALE revolution in the financial services industry in recent years could trigger an outbreak of instability "with macroeconomic consequences" unless it is adequately monitored, the International Monetary Fund (IMF) has warned, says the Independent.
The IMF told a seminar at the Bank of England technological changes and financial deregulation had changed the way banks and other players operated.
It said the increase in competition and the number of new players such as hedge funds in the financial systems would force central banks and regulators to change the way they set interest rates and regulated markets.
It told senior City figures and economists at a briefing in London on Friday the greater speed and flexibility of financial markets such as Britain and the United States could leave them more exposed to booms and busts in asset prices.
ROYAL BANK of Scotland and NatWest have joined forces with the National Federation of SubPostmasters to install 300 free-to-use cash machines in some of the UK's poorest communities, reports the Guardian.
The RBS Group has signed agreements for the first 27 sites in town halls, housing estates and convenience stores.
Gordon Pell, chief executive of retail markets at RBS, said: "Lack of free access to cash can badly affect the most vulnerable people in society. Having a free-to-use cash machine close by can make a real difference to the elderly, disabled and those living on a very low income."
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