Updates from G4S, Lonmin and Mitchells & Butlers
The week ended positively across Asia with both the Hang Seng, Nikkei and South Korean Kospi rising sharply, part-buoyed by new iPhone sales.
We begin with more discontent for G4S. Increasing numbers of MPs, following a new House of Commons Home Affairs Committee report, want the embattled security player to be blacklisted from future Government contracts - and G4S should waive its £57m management fee.
The FTSE 250 stock market security business has responded, claiming the £57m fee is not a profit-related charge. "It relates substantially to real costs which have been incurred such as wages, property and IT expenditure. The final financial settlement is currently under discussion with LOCOG."
However MPs claim G4S remains "firmly and solely" to blame for the Olympics security mess. "We believe that the company should look to the bigger picture, and its long-standing relationship with its biggest client in the UK: the taxpayer."
Next, Lonmin and a wage deal has been brokered at its troubled Marikana mine, ending a month-long violent strike. The deal looks likely to be a trade-off between higher wages and jobs. Production could take some time to return to capacity due to safety checks.
"Following its conclusion," said the company, "Government, unions and mining companies need to work together to ensure that bargaining arrangements are adhered to by all parties. As part of this task Lonmin welcomes the opening of a conversation on centralised bargaining and pledges to be a full participant in that conversation."
Lonmin's wage bill is expected to rise by 14% from 1st October. The company is expected to raise more cash through a new rights issue. Its shares were valued at 619.0p this morning.
Finally, Mitchells & Butlers director Doug Evans is to step down to join Hays plc as Company Secretary & General Counsel in February 2013. Doug McMahon, Mitchells non-exec director, has appointed Richard McGuire as his alternate with effect from 1 October 2012.
"I would like to thank Doug for his important contribution to the Board and wish him every success in his new role," says Bob Ivell, exec chairman.