Business News In Brief

National Westminster Bank yesterday dismissed as "market speculation" suggestions that it had held talks with the UK's biggest insurer, the Prudential, over a link-up that would create an organisation controlling some 10 per cent of the UK's fund management business. NatWest also played down rumours that the newly floated Halifax might be considering a takeover approach. NatWest denied that its NatWest Markets arm could face another multi-million pound loss following the pounds 77m "black hole" in its interest rate options division.

Waterstones, the bookselling chain owned by WH Smith, is to open 50 new, smaller-format bookshops over the next few years, bringing the UK total to 150. It is targeting towns such as Altrincham, Bury St Edmonds and Rugby where research has shown a demand for smaller 2,500 sq ft stores.

Johnston Press, the UK's fifth-largest regional newspaper group, has identified a successor to Fred Johnston who retires from his role as executive chairman in September. Tim Bowdler, group managing director, will become chief executive. Mr Johnston, a member of the family which owns 28 per cent of the company, is likely to remain non-executive chairman until the end of 2000.

The privatisation of France Telecom could go ahead after all, according to a senior member of the ruling Socialist party yesterday. Claude Bartolone said the government should "take a look" at privatisation if employees gained job guarantees and cash raised was used to fund state work programmes.

Banks experience less than half the success of building societies in selling household insurance to their mortgage customers, according to a survey conducted by accountants KPMG.