City News: Plusnet, Delux, Redrow and Car exports
PLUSNET, the BT-owned broadband and landline company, has been fined £880,000 for billing customers after they had cancelled their service.
Plusnet is the BT-owned broadband and landline company and the Dutch maker of Delux paint
Plusnet billed ex-clients
Regulator Ofcom said the firm had “broken a fundamental billing rule” by continuing to charge 1,025 customers because an error in its billing system meant cancelled lines were still recognised as “live”.
The total overcharging bill came to more than £500,000.
Plusnet apologised for an “isolated historic issue” and has refunded 356 customers a total £212,140, with the remaining funds being given to charities.
Delux owner's brush-off
The Dutch maker of Dulux paint has been urged by leading investors to “engage” with US suitor PPG Industries after it rejected a 22.7billion euro (£19.6billion) takeover.
Akzo Nobel, which employs more than 3,000 people in the UK, said PPG’s revised cash and shares proposal substantially undervalued the business.
PPG argued that its offer would give investors “extraordinary value, by any measure”.
Activist US hedge fund, Elliott Advisors, which holds 3 per cent of Akzo, said the firm failed to consult shareholders before rejecting the bid, adding: “Had they done so, they would have found most shareholders want the boards to engage with PPG.”
Dulux paint has been urged by leading investors to 'engage' with US suitor PPG Industries
Redrow's big builds
Housebuilder Redrow enhanced its credentials in bidding for Bovis Homes as it flagged annual profit well ahead of City expectations.
FTSE 250 builder Bovis has rejected merger proposals from Redrow and Galliford Try, although it remains in talks with the latter.
They have until April 9 to make a firm offer.
Redrow said that following a further increase in legal completions and better than anticipated average selling prices, it is on track to deliver a pre-tax profit of at least £306million, up 22 per cent on the previous year.
Redrow has flagged its annual profit well ahead of City expectations
Exports of cars surge
A big export drive lifted UK car manufacturing to its fastest February growth for 17 years.
The Society of Motor Manufacturers and Traders said 153,041 vehicles rolled off production lines last month, up 8 per cent on the previous year.
Overseas demand accelerated 13.4 per cent to 118,898, while home production was down 7.4 per cent.
SMMT chief executive Mike Hawes said: “With eight out of every 10 cars we produce destined for international markets – and half of those for customers in the EU – we must avoid barriers to trade.”