British Coal names boss for pension sell-off
Wednesday 28 February 1996
British Coal tightened its grip yesterday on its pensions fund arm, which it is struggling to sell, with the appointment of Philip Hutchinson, its secretary and director of legal affairs, as chairman of CIN Management. He moves in as Barry Southcott, the chief executive, was pushed out by British Coal bosses, anxious to push ahead with the sale and complete the privatisation.
But yesterday's management shake-up threatened to deepen the split between British Coal and the trustees of the pounds 16bn in pension funds, which has already reduced the sale to chaos. Trustees threatened to use their authority to block any attempted sale that did not meet their conditions. "Those assets are not British Coal's, they are the trustees's, and we will only permit a sale to a bidder with which we are happy," said a source.
The sale of CINMan, which manages the pension funds on behalf of 500,000 mineworkers, was thrown into confusion last month when the trustees scuppered a proposed purchase for pounds 70m by Friends Provident. The trustees are insisting that any purchaser retain the bulk of CINMan's management and continue its investment style. These conditions make a bid difficult for any group that has an existing fund management business in the UK.
Mr Southcott's position became increasingly vulnerable after the collapse of the Friends Provident deal, as British Coal and the Department of Trade and Industry vented increasing frustration.
Mr Southcott had been in the chief executives post for less than 30 months, and is believed to be leaving with a six-figure payoff.
The management shake-up at CINMan will put day-to-day responsibility in the hands of Mr Southcott's two deputies, Rick di Mascio and Ivan Yeatman.
The Government and its advisers, Samuel Montagu, are now concentrating on negotiations with the only remaining interested party from the previous round, Robeco, the Dutch bank. Since the collapse of the Friends Provident talks a number of other parties have expressed interest, including Hambros, Framlington and Societe Generale, the French bank. But before being able to begin talks with any of these, the trustees would have to re-open the sales process with the DTI, British Coal and the management team, which would inevitably be a lengthy process.
Robeco is interested in acquiring CINMan as a base for building up fund management in the UK, but the price tag has now slipped even further.
- 1 Woman 'suffocates newborn baby in plastic bag and puts it in her desk minutes after giving birth'
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 5 Chinese student carries disabled friend to school every day for three years
Nepal earthquake in pictures: Photos show devastation caused by 7.8 magnitude earthquake
Royal baby: Live updates as superbug closes ward at St Mary's Hospital in London where Duchess of Cambridge is due to give birth
Nepal earthquake: Rescuers forced to dig with their bare hands in search for survivors as images show damage to historic buildings
Ed Miliband and Boris Johnson in angry clash live on BBC's Andrew Marr Show
Bali Nine executions: British grandmother on death row in Indonesia Lindsay Sandiford says she 'just wants to get it over with'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...