Private equity chiefs yesterday failed to persuade key members of the Treasury select committee that they should pay as little as 5% tax on their investments, despite their repeated attempts to show the industry was "a force for good", The Guardian reports.
Top executives from companies including Permira, owner of the AA, and Kohlberg Kravis Roberts, which recently bought Boots Alliance in a highly leveraged £12bn deal, defended their industry under close questioning by MPs, citing examples of jobs growth and the benefits of their activities for the economy.
A PLANNED FIRE SALE OF ASSETS from two crippled hedge funds has been attracting the attention of a nervous Wall Street, for fear it could reveal billions of dollars of hidden losses across the financial system, The Independent reports.
Bear Stearns, the investment bank formed in 1923, was last night still struggling to save its two funds, which got into trouble after the US sub-prime mortgage market collapsed. But creditors including Merrill Lynch moved during the day to auction off more than $1bn (£500m) in assets seized as collateral for loans.
A PAN-EUROPEAN MERGER between the London Stock Exchange and the Milan-based share market Borsa Italiana was believed to be on the cards last night, The Independent reports.
A statement from the LSE said it was "in discussions to establish whether a merger can be agreed". According to sources, any deal would be structured to leave some operating autonomy to the Milan authorities. Massimo Capuano, the chief executive of Borsa, is expected to outline the plan to his board tomorrow.
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Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till