Sunday Round-Up: The main stories fron yesterday's City pages

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The Independent Online
Independent on Sunday

Forte has struck a deal with the rival hotels group Savoy which will end 13 years of dispute between them. Under the secret agreement, brokered by Morgan Stanley, the hotels in the Savoy chain - including Claridges and the Connaught - will be put into a joint venture with Forte's upmarket hotels under the Exclusive tag, such as the Grosvenor House Hotel and the George V in Paris.

The Stock Exchange is planning a further relaxation of the listing rules for biotechnology companies. The new rules, expected to be announced in the next few weeks, would ease the ban on directors selling out within two years of floating and cut their service requirement from the current three years.

Union International has put on hold the proposed flotation on the Australian stock market of its Far Eastern meat business, following the collapse of its New Zealand subsidiary.

Britain is suffering a shortage of BMWs. Buyers of the 3-series, BMW's smallest range, are being told they will have to wait until November for delivery after a 22 per cent rise in sales this month.

Share tips: British Polythene Industries, Booker, Porvair, Premier Consolidated Oilfields, British Gas.

The Observer

Eurotunnel is expected to cut prices of Le Shuttle following a price war on the Dover-Calais route between ferry companies. The paper reports that industry sources believe it has left the service, due to start in the autumn, about 20 per cent too expensive.

Cutting the price of the Times and the Sun has cost their owner, News International, pounds 50m a year profit, according to estimates by Australian analysts at the broker Barclays de Zoete Wedd. Results for 1993/4, due to be announced this week, are likely to show a pounds 38m cost so far. Prices of the Sun and the Times are expected to be increased today.

Share tips: Cadbury Schweppes, Marley, Kalon, Evans Halshaw.

Sunday Telegraph

A Lloyd's agent, James Sinclair, has attacked Wellington Underwriting over the latter's plan to establish a quoted vehicle to attract limited liability investors. Critics claim such plans work against the interests of old-style unlimited liability names, who have borne losses of more than pounds 8.5m.

Strategists and fund managers predicted further share-price rises after last week's news that inflation in Britain had fallen to a 27- year low.

Share tips: Epwin, Delta Gold, MFI.

Sunday Times

Glaxo is the front-runner to buy a dollars 1bn ( pounds 650m) stake in PCS, the drugs distribution division of Eli Lilly, its US rival. Lilly bought PCS earlier this year in a dollars 4bn takeover of McKesson, its parent.

Tiphook, the transport group, has withdrawn funding from the Conservative Party. The company, which was once a large contributor, did not make any political donation last year, according to Tiphook's annual report.

The Office of Fair Trading appears to be heading for victory in its campaign to end the net book agreement, the arrangement that prevents most new books selling at a discount. The paper claims the industry is not prepared to put up a fight.

BAA, the airports operator, is proposing to take over Gatwick railway station as part of a policy of diversification. Share tips: Thorn EMI, Wace

Mail on Sunday

Redundant miners and other victims of recession are reckoned to have lost about pounds 100m of their savings in flawed get-rich-quick schemes over the past four years.

Share tips: Corporate Services Group.

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