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BBC Worldwide/C4 deal ‘within weeks’

BBC Worldwide chief executive confident of striking a deal following new streamlined proposal

The BBC Worldwide chief executive, John Smith, is confident a deal to form a joint venture with Channel 4 will be signed within weeks following the tabling of a new streamlined proposal that he claims has gained traction with both parties.

Both broadcasters have been locked in at times fraught discussions to thrash out a commercial partnership deal to secure the future of Channel, 4 which claims it faces a funding gap of as much as £150m from 2012.

Smith, who would not elaborate on specific stumbling blocks, said the new proposition would pull in parts of Channel 4′s operation, including ad sales as well as using its strong heritage in genres such as gardening, property and food.

“[I feel we are] weeks away from being able to agree – longer for a legally binding contract – a term sheet [document outlining main points of the deal]. I’d like to think we will do it irrespective of politics. If it makes commercial sense I always believe we should do it.”

Outgoing communications minister Lord Carter had urged a final plan to be submitted for inclusion in last month’s Digital Britain report. The failure to do so left the report calling weakly for further discussions on “the practical and strategic implications of further structural separation”.

“We pitched to Channel 4 our proposal for a UK-only joint venture in November last year,” said Smith. “To be honest it was a bit frustrating [that a deal was not done]. A couple of weeks ago we pitched an amended, smaller proposal taking away the things that were sticking points”.

Following the publication of Digital Britain Luke Johnson, the Channel 4 chairman, reiterated the broadcaster’s desire to join forces with BBC Worldwide as the “preferred means of securing more sustainable funding to support our public service delivery”.

The implications of a smaller deal are unclear, with the BBC warning in its submission to Digital Britain in March that a tie-up with BBC Worldwide would not fulfill the government’s ambition of creating a new public service broadcaster of “real scale”.

The Channel Five chief executive, Dawn Airey, a keen proponent of a tie-up with Channel 4 as an alternative, has warned that any deal that involved the transfer of assets, and which could be interpreted as state aid for Channel 4, would be pounced upon by rival broadcasters also feeling the pinch.

A month before Digital Britain was published, Smith told the House of Lords communications committee that the partnership would include BBC Worldwide’s UK assets, including its 50% stake in the UKTV pay-TV channels business – including Gold and Dave – and its 60% stake in the DVD business 2Entertain. The venture would also include the remaining 50% stake in UKTV held by Virgin Media, which BBC Worldwide is keen to acquire, and the 40% of 2Entertain owned by Woolworths.

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Tevez hits back at Ferguson claim

Manchester City’s new signing Carlos Tevez insists Manchester United manager Sir Alex Ferguson did not contact him to try to keep him at Old Trafford.

Ferguson claims he offered the 25-year-old a deal in March to turn his two-year loan move, which expired this summer, into a permanent switch.

United’s boss also said he texted and phoned the Argentine without response.

"I was there for two years and Sir Alex never called or sent any text messages in that time," said the striker.

"The only time he talked to me was after a match against Roma to discuss a situation of playing for Argentina.

"It doesn’t seem that this is the way to treat a player in two years at the club. It doesn’t seem there is a line of communication."

PHIL MCNULTY’S BLOG

"Is he better than what City currently have Can they afford him Yes, and most emphatically yes."

Tevez had moved to United on a two-year loan deal in the summer of 2007 after a stint at West Ham.

A £25.5m fee had been agreed at the time if United wanted to buy the player from his advisors, who owned his economic rights, and make the move permanent.

Tevez believed he was kept waiting too long for a deal to materialise and, in the meantime, was unhappy at his treatment by the Old Trafford outfit as well as his lack of first-team opportunities.

The two eventually parted company when Tevez rejected a five-year contract from United earlier this summer in favour of a move to local rivals Manchester City.

But Ferguson said on Monday: "I half expected Tevez would be going a long time back.

"I think he maybe did a deal around January because I spoke to him and gave him an offer on the night we played Inter Milan (in March) and he never came back to me.

"I phoned him on holiday and he never got back to me and I texted him twice and he never got back to me then either, so obviously he had made his mind up a long time ago.

"He was a good player and did well for us. But he obviously assessed the situation and wanted to go somewhere else."

Tevez denied any suggestion a deal had been agreed with City in January 2009 as he praised the United supporters for their backing of him.

The Argentine built up a good rapport with United’s fans as he helped the club to the 2008 and 2009 Premier League titles, the 2008 Champions League trophy as well as last season’s Carling Cup.

And Tevez added: "The fact I did not stay at United was not because of the fans.

"They must understand a part of my heart will always be with them. They were always extremely supportive, even when I wasn’t playing."</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Mike Lux: Martin Luther King, Jr. vs. Rodney King

There are two rather fundamentally opposed ways of viewing the political process, and they are playing themselves out right now across a range of important…

Man City to confirm Tevez signing

Manchester City have agreed a five-year deal to sign former West Ham and Manchester United striker Carlos Tevez.

The 25-year-old Argentine forward, who left Old Trafford last month, will complete his move subject to a medical.

More to follow. </p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

BA pilots vote for 2.6% salary cut

• Pilots agree to take salary cut and work longer hours
• Chief executive expected to be barracked at AGM

Willie Walsh, the embattled chief executive of British Airways, faces a mauling from shareholders and his own staff at the airline’s annual meeting, tomorrow despite securing a crucial pay deal with the fleet’s pilots, which will see them accept a pay cut and longer hours as management tries to slash costs.

Unions representing baggage handlers, cabin staff and ground crew will mount a protest outside the AGM in London over management plans to lay off thousands of workers. Shareholders are also expected to barrack Walsh during the meeting over the dramatic downturn in the flag carrier’s fortunes, which has already seen the company stop paying dividends and looks set to result in an emergency cash call.

Walsh, who has agreed to forgo his £61,000 wage for the month of July to show he means it when he says BA is battling for its survival, is looking to stem the airline’s losses, which are running at nearly £3m a day. In May, BA revealed that the recession has turned record profits of £992m two years ago into a record pretax loss of £401m last year.

A deal with BA’s 3,200 pilots is a small victory for Walsh, but his battle to reduce the company’s overheads as it suffers a plunge in lucrative business travel is by no means over. Management is still locked in talks at the conciliation service Acas after a self-imposed deadline of 30 June passed without any deal with cabin staff and ground crews.

BA’s bosses want unions to agree to a deal that would freeze pay for two years and result in the loss of 3,700 jobs – or almost 10% of the workforce – including 2,000 voluntary redundancies from its 14,000 flight attendants. They also want staff to agree to wide-ranging changes to their terms and conditions.

Management this year asked staff to consider working for free or taking unpaid leave, and nearly 7,000 employees applied for voluntary pay cuts, including 800 who said they would work for nothing for up to a month. The move, which will save the carrier up to £10m, was attacked by some union leaders who feared staff were being bullied into signing up.

Unions will hand out letters to shareholders outside today’s meeting pointing out that staff are proud to work for BA and it is bosses who are out of step, making doom-laden pronouncements about its future just a year after it produced record-breaking profits.

“All BA employees are ready and willing to pull together to secure a vibrant future for the company, but they desperately need to see that BA senior management want to work with them towards this objective, not blame them for a situation which is not of their making,” the letter reads. “The staff are willing to listen and respond, but feel under pressure to agree to measures – like working for free – that they simply can’t afford. There is also no merit whatsoever in management adopting unrealistic and intransigent positions during discussions with staff representatives.”

Protesters will have a dozen live lemmings with them outside the meeting and placards bearing slogans including “British Airways deserves better than to be led by lemmings” and “Willie, time to head to the departure gate?”.

Walsh, however, is likely to take heart from his success in persuading BA’s pilots to accept a pay cut. The British Airline Pilots Association (Balpa) said that 94% of its members who voted were in favour of accepting a 2.6% salary cut to help the cash-strapped airline save £26m. As part of the deal, BA’s pilots have agreed to an increase in annual duty hours, a cut in turn-around times on short-haul flights and reductions in the flight-crew arrangements on certain long-haul routes. There will also be 78 redundancies. In return, pilots will be able to pick up BA shares in two years’ time worth about £13m.

Balpa’s general secretary, Jim McAuslan, admitted that it was “an unaccustomed position” for a union to be calling on members to support a drop in pay but said: “We are satisfied that this step is necessary to help BA recover its position as one of the world’s most successful airlines.”

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds


Tevez agrees to join Manchester City

• Striker will have a medical before signing five-year deal
• Tevez will wear No32 shirt at City of Manchester Stadium

Manchester City have reached an agreement with Carlos Tevez over a proposed move to the City of Manchester Stadium.

The club have agreed personal terms with the 25-year-old, who spent the last two seasons at rivals Manchester United, and the deal has been ratified by the Premier League and the Football Association.

The Argentina striker will now have a medical in Manchester after which he is expected to sign a five-year deal before joining his team-mates for a pre-season tour of South Africa.

“It is terrific news,” City manager Mark Hughes told the official club website. “Carlos is an international player of the highest class who possesses all the attributes that will help drive this club forward.

“He is not only outstanding technically but he is a reliable goal scorer and someone who will contribute fully to the team ethic. He gives us another exciting, attacking dimension.

“I cannot wait to welcome him to City. This is yet another deal that shows the commitment of the owner Sheikh Mansour to make this club the very best it can possibly be. I am sure our fans will give Carlos an exceptionally warm welcome.”

Once Tevez completes his transfer he will wear the No32 shirt at Manchester City.

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Pledge time

G8 leaders at their L'Aquila summit

The G8 summit in Italy has closed with world leaders pledging $20bn to help boost food supplies in the developing world.

There were also agreements among both developed and developing nations that global temperatures must not be allowed to rise to dangerous levels.

BBC correspondents at the G8 give their analysis on the main developments. Follow the links below to jump directly to their analysis.

Bridget Kendall on the G8

James Robbins on the environment

Andrew Walker on development

BRIDGET KENDALL ON THE G8 CONCEPT

Bridget Kendall

Low expectations can be an advantage. The G8 has had much bad press in recent years, and the emergence of the other "Gs", as President Obama called them – groupings of G20, G5 and G14 – had threatened to undermine its exclusivity.

What was the point of a G8 club, many were beginning to ask, which was too narrowly-based to tackle today’s global problems and when it did reach a deal, never seemed able to live up to its own promises

At first glance, this year’s gathering did seem more consensual than it has been for some time. But on broader diplomatic questions, the sands soon began shifting.

The American and Russian presidents both arrived, basking in the warm glow of what appeared to be a ground-breaking summit in Moscow, crowned by a deal to get back to a new round of nuclear arms cuts.

But in his final G8 press conference President Medvedev sounded a chilly note: Russian missiles could still be re-targeted to point at Europe, he warned, if President Obama did not cancel plans for that controversial missile shield in Europe.

So much for G8 consensus building…

In the end, it seemed as though the main purpose of this summit was simply to take stock before the next global round of meetings. President Obama publicly warned Iran it had until the next G20 summit – due in September – to respond to an appeal to suspend its nuclear programme.

Many leaders invoked the Copenhagen meeting in December as the real deadline when it came to a proper global deal on tackling climate change.

So has the G8 had its day President Obama seemed to hint as much, ruefully complaining there had been far too many summits already in the six months he had been in office.

But it is much harder to dismantle clubs than it is to invent new ones. The Canadians are already preparing for next year’s event. And the French the year after. So watch this space… and see you again next year.

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JAMES ROBBINS ON CLIMATE CHANGE

James Robbins

Few people expected a decisive breakthrough on climate change at this summit. President Obama pointed out at the end of proceedings that the G8 was never really the right forum for that.

Nevertheless, the meeting of the major economies forum he chaired did bring a greater meeting of minds and of joint political will than we have ever seen previously.

The historic polluters – the industrialised countries who make up the Group of 8 – were able to join with the emerging economic giants in a shared acceptance that global warming must be limited to a maximum temperature rise of 2C.

That could not have been taken for granted before all those leaders came to Italy.

It helps bind India and China, in particular, into a process of restricting emissions of greenhouse gases – a process to which they have previously been highly resistant or even downright hostile.

The US, under the new management of Barack Obama, has moved a long way too. His commitment to aim for emissions cuts of a whopping 80% by 2050, alongside the other G8 countries, does have its flaws.

But it is a very big target, even if it is so far in the distance that it is quite hard to judge if really tough decisions will be made now to make deep cuts by 2020. That’s what the UN scientists insist is necessary.

The failure to agree an interim target for 2020 provoked the UN Secretary General into unusually harsh criticism. Ban Ki-moon told me at this summit that the G8 leaders of the rich world were failing to shoulder their "historical responsibilities".

No wonder everyone agrees that it is going to be a very hard road indeed towards Copenhagen and the December UN summit meant to produce a new and binding global treaty.

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ANDREW WALKER ON DEVELOPMENT

Andrew Walker

The final day of the summit was dominated by food, and a new approach to tackling hunger. It involves less emphasis on food aid and more on promoting the development of agriculture.

And there is money on the table to fund the strategy – $20bn. Campaigners here generally welcomed the basic idea, but have reservations about whether the money being offered is enough and whether it is genuinely new.

The big concern they always have whenever the G8 offers aid for something is whether the money will be diverted from other development programmes.

Most say that in the immediate aftermath of the news, they don’t know. But they will be poring over the figures to see if they can work it out.

On the overall aid budget there was a great deal of criticism of some G8 countries ahead of the summit for falling behind on commitments they made at Gleneagles in 2005. Max Lawson of Oxfam says that European G8 countries made the biggest promises. But apart from the UK, he says, they are not on track to implement the aid increases they said they would by 2010.

One of the communiques issued at this summit reiterates the importance of the Gleneagles commitments. But campaigners say some G8 countries are almost certain to fall short.

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This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Mobile broadband holes logged

Woman using laptop on Primrose Hill

There are still significant notspots when it comes to 3G mobile coverage in the UK, regulator Ofcom has revealed.

It has pledged to investigate why some places, particularly in rural areas, are still failing to get any coverage.

It also said it will investigate mobile broadband speeds, which vary tremendously in different areas and at different times of day.

Between February 2008 and February 2009 there were two million new connections to mobile broadband, said Ofcom.

3G (or Third Generation) services allow people to connect to the web via a wireless network, either using a phone, a dongle or datacard which can be plugged into a PC or a laptop.

In the UK such services are offered by operators such as Vodafone, Orange, O2, T-Mobile and 3.

But there are questions about how reliable these services are and whether they can provide the speeds needed by consumers.

More spectrum

Research from broadband communications firm Epitiro recently found that the average download speed achieved with mobile broadband was just under 1Mbps (megabit per second).

"if mobile networks are going to become one of the key routes to the internet for million of users, they’re going to need to build more six-lane highways to replace those B-roads where the traffic keeps getting stuck."

Rory Cellan-Jones
BBC technology correspondent

Read the dot.life blog in full

At 0300 this average rose to 1.8Mbps, illustrating that contention issues – how many people use the service at any given time – plays a big role in limiting speed.

On average mobile broadband users were only getting a quarter of advertised speeds, found Epitiro’s study.

Increasingly consumers are dropping their fixed line phones in favour of mobile. While mobile calls increased by 11 billion minutes during 2008, the number of minutes on fixed lines fell by 8 billion.

Consumers are getting increasingly data-hungry. In 2003, just 1% of revenue per mobile connection came from data but by 2008 that rose to 6%, according to Ofcom.

The Digital Britain report pledged to free up more 3G spectrum, which should improve coverage.

Consumer Focus, an organisation dedicated to campaigning for a fair deal for consumers, welcomed Ofcom’s review of the mobile market.

"Some consumers find themselves excluded from mobile communications due to gaps in 3G coverage or the market’s failure to make new technology accessible to all," said Audrey Gallacher, telecoms expert at Consumer Focus.

She felt that Ofcom could do more to make it easier for consumers to sign up to mobile broadband.

"Accessing the best deal in a market where mobile operators offer a bewildering array of over 200,000 different tariffs is a real challenge," she said.

"With mobiles now treated as an essential service rather than a luxury, there is more pressure than ever before on mobile companies to give consumers a fair deal and make mobile services accessible to all," she added.

UK 3G coverage graphic


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Opel Magna deal uncertainties

It would seem that negotiations between Magna and GM have hit some choppy waters. GM is reportedly concerned over giving away too much technology to Magna and a prospective Opel/Vauxhall Mark 2 with its Russian connections. There’s also the issue of carving up territories for future Opel sales. GM is wary of creating a monster that hurts its own future chances in key markets.


Is the deal really moving towards being off? I somehow doubt it. The German government is still right behind Magna’s bid and has already provided bridging finance and loan guarantees for Opel. Berlin is not seeking to fuel the press speculation about other bidders being invited back to the table, though it has been acknowledging that we don’t have a done deal yet.


But it looks like there has been a bit of press manipulation emanating from Detroit. Anonymous sources said to be close to events are popping up everywhere. By creating the impression that the deal is far from done and that other bidders are very much in with a chance, GM puts added pressure on Magna in the negotiations. But if the Magna consortium bid does unravel, a whole load more uncomfortable questions get asked about other bidders, Berlin has a heart attack and, apart from anything else, even more GM management time likely gets diverted to the Opel/Vauxhall sale. They have more than enough on their plates in the Ren-Cen at the mo.


The competition for Opel/Vauxhall is still not over, but Magna’s consortium is still by far the front-runner due to its strong backing from Germany – government and labour unions. Marchionne may look on with interest, but his bid caused much consternation in Germany before and would do so again. If holding company RHJ has really improved its offer, it may well get a hearing, but it should be wary of being ‘used’ by GM as a lever to chivvy Magna. Oh, and by the way, RHJ has just posted a big loss suggesting it’s perhaps not really in position for anything more than a small role or stake. Beijing Auto? I don’t think so.


That said, if a seismic shift is coming, and Magna is really on its way out, expect an announcement very soon. Time is short. The German government needs to be on-side. And Opel is already eating into bridging finance. 

US/GERMANY: GM eyes Opel deal with RHJ – report

Delphi discord

Delphi has now been in Chapter 11 in the US for almost four years and its attempt to exit at the beginning of the year was scuppered by the economic downturn. If it had come out, it might well have gone in again this year (it is rather wonderfully called ‘Chapter 22′ when you go in twice, Rob Golding tells me).


A new proposed exit deal calls for Delphi to sell four US parts plants and its steering business to former parent GM. Most of Delphi’s remaining assets would be sold to Platinum Equity.


A number of lenders – hedge funds – are pretty unhappy at what they will get out of it. A competing bid could come in but I doubt the proposed deal, supported by Obama’s taskforce, will be seriously endangered. If this deal comes undone GM potentially gets another major headache it can do without.


Was the deal a bit of a stitch-up though? Sounds like it might well have been.

US: Lenders oppose planned Delphi sale

ASBIS Enhances ODD Product Offer Thanks to Distribution Deal with Pioneer

ASBIS has struck a deal with Pioneer Europe NV providing for the distribution of the whole range of Pioneer optical disc drives (ODDs) throughout the countries of ASBIS’ presence across Central and Eastern Europe, including Russia and Ukraine, and Africa.

ASBIS Strikes Distribution Deal with Foxconn

ASBIS has signed an Authorized Distributorship Contract with Taiwan-based Hon Hai Precision Industry Co., Ltd., one of the world’s largest manufacturers of PC assemblies and motherboards and the largest manufacturer of PC connectors and enclosures. According to the agreement signed at ASBIS’ head office in Cyprus, the company is now authorized to distribute all products bearing the Foxconn brand including motherboards, chassis, and coolers.