Touchbet Tycoon Gambles On Sporting Index

By Mark Kleinman, City Editor

A little-known Swedish tycoon has emerged as the mystery buyer of Sporting Index, the world's biggest sports spread-betting operator.

Sky News has learnt that Touchbet, which is based in Malta and is owned by a businessman called Magnus Hedman, was the unidentified third party which last month swooped to acquire the British-based company.

In a statement confirming the sale, Sporting Index, which has an estimated 80% share of the spread-betting market, referred to its acquirer as a "private strategic investor in online sports betting".

Touchbet specialises in providing odds to sports betting operators, an area which complements Sporting Solutions, the division of Sporting Index which supplies real-time pricing and sports trading capabilities to sports books, gaming providers and lottery operators around the world.

Sporting Index was sold by Hg Capital, a private equity firm which had owned the company since 2005.

Touchbet's acquisition of the business remains subject to regulatory approval. 

Established in 1992, Sporting Index describes itself as "a leader in sports spread betting, providing its customers with the most exciting way to bet across a wide variety of sports, as well as political and showbiz events".

It has approximately 60,000 customers in 90 countries. 

In its statement announcing the takeover, Sporting Index said its new owner "plans to support the Group's current management team in expanding the potential of its B2C [business-to-consumer] betting business, as well as enhancing the range of services provided by the Group's rapidly expanding B2B [business-to-business] pricing and software services business".

Warren Murphy, Sporting Index Group's chief executive, said the new owner was "an excellent fit for our business". 

"We have a shared our vision for the future and will receive the necessary resources and expertise to help drive the future growth of both Sporting Index and Sporting Solutions," he added.

Sky News revealed Hg Capital's plan to sell Sporting Index last summer.

Mr Murphy's predecessor as the company's chief executive was Richard Glynn, who has just stepped down as the boss of Ladbrokes, the high street bookmaker.

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Supermarket Wars: Aldi Overtakes Waitrose

Aldi has overtaken Waitrose in terms of market share for the first time in the UK to become the country's sixth largest supermarket chain, according to the latest industry figures.

Statistics published by Kantar Worldpanel for the 12 weeks ending 29 March showed hard discounters continued to eat into the sales dominance of the big four chains - Tesco, Asda, Sainsbury's and Morrisons.

While upmarket Waitrose grew sales by 2.9% compared to a year earlier, Aldi's sales were found to have soared.

News of the German firm's progress emerged as Aldi confirmed it was to quadruple its number of stores in London this year, creating 600 new jobs.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: "Aldi has recorded double-digit sales growth for the past four years and is now Britain's sixth largest supermarket with 5.3% of the market.

"Growth has been fuelled by over half a million new shoppers choosing to visit Aldi this year and average basket sizes increasing by 7%.

"The German discounter's sales have increased by 16.8% in the latest period, still high compared to other retailers but slower relative to its recent performance."

Waitrose had a market share of 5.1%, Kantar said.

There was also some cheer for the big four, which have been slashing costs and prices in a bid to protect their own market shares.

Sainsbury's returned to growth in the 12 week period for the first time since August 2014.

Its market share fell just 0.1% to 16.4% while Tesco also grew sales, up 0.3%, while Asda and Morrisons declined by 1.1% and 0.7% respectively. 

Kantar said shoppers were continuing to benefit from falling prices.

Grocery inflation saw its 19th successive fall to stand at an annual rate of -2.0% - a new record low.

Falling shop prices, a result of the intense competition and other market forces including weaker oil and other commodity costs, are expected to imminently result in the UK's inflation rate turning negative.

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Hundreds Of Flights Cancelled By France Strike

Hundreds of flights to and from Britain have been cancelled due to a strike by air traffic controllers in France.

No frills airline Ryanair said it had axed more than 250 services while British Airways has warned of significant delays for the next 48 hours.

Departure and arrivals boards at Heathrow suggested most European flights were either delayed or cancelled, affecting tens of thousands of passengers during the Easter break.

Easyjet has axed 160 flights, including 36 to and from the UK. 

The airline said in a statement: "We can assure our passengers we are doing everything possible to limit the inconvenience of this strike on them."

British Airways said: "Unfortunately there will be some knock-on delays to other parts of our short-haul network as a result of the strike action, given how much airspace in Europe will be affected. We are sorry for any disruption to customers' travel plans."

Ryanair hit out at those on strike. In a statement the airline said: "It's grossly unfair that thousands of European travellers will once again have their travel plans disrupted by the selfish actions of a tiny number of French ATC workers."

Passengers voiced their frustration on Twitter:  

John Reynolds tweeted "Another great example of @Ryanair customer service - they tell you at 5.30pm that your flight is cancelled then close all comms down!"

While Darren Sutton asked Ryanair via twitter "my flight today has been cancelled and nothing available until Monday. What do I do now I'm stuck in Spain with no money or hotel?"

The effects of the strike have been felt far beyond France. Dave Garwood tweeted "daughter stranded in Marrakesh as Ryanair flight cancelled". 

The moves by airlines were a response to advice from the French aviation authority, the DGAC, which had urged companies to cut their flights to and from France by 40%.

Airlines have warned the action will have a knock-on effect for short and medium-haul flights across Europe, due to the large number of flights that normally use French airspace.

The strike has been called by France's largest Air Traffic Controllers union, the SNCTA, in a dispute over working conditions.

The union is planning further action on 16-18 April and 29 April to 2 May.

The SNCTA delayed a strike planned a strike for 25-27 March due to the Germanwings crash in the French Alps.

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Everything You Need To Know About Non-Doms

Who are the non-doms, what tax do they avoid and who introduced these rules anyway? Here is all you need to know.

:: What is non-dom status?

Non-domiciled status can be claimed where you are living in the UK but your father or grandfather was resident in another country when you were born. (Grandfather because non-dom status can be inherited).

It means you do not have to pay UK tax on money earned outside the UK.

:: What if my mother or grandmother were resident outside the UK when I was born?

Tough luck, you do not qualify. The rules are a bit sexist like that.

:: Rules or law?

Actually non-dom status is a tax rule. It was introduced by William Pitt the Younger in 1799 - along with income tax.

The caveat was included as an allowance for ships bringing goods back from the colonies.

:: How many non-doms are there?

Around 116,000. They tend to be very rich.

Among them are HSBC boss Stuart Gulliver and steel magnate Lakshmi Mittal.

Conservative peer Lord Ashcroft gave up his non-dom status in 2010 so he could remain in the House of Lords.

:: And does it effectively turn the UK into a tax haven for the rich as Labour is claiming?

Yes, and no. People may still have to pay tax in the country where they are earning cash.

That said, leaked files earlier this year showed some were paying no tax anywhere in the world by using Swiss bank accounts at the suggestion of HSBC.

:: So do non-doms get away without paying anything in the UK?

They did - but now they only do for seven years. In 2008 Labour tightened the rules.

Those who have lived in the UK for seven years had to pay an annual fee of £30,000 if they wanted to keep their non-dom status.

George Osborne tightened it further still in the Autumn Statement - increasing the fee for those living in the UK for 17 years to £90,000.

:: For really rich people that annual fee still seems a pretty good deal

It has been said. One non-dom told Sky's Political Editor Faisal Islam that the Chancellor could raise the annual fee to £250,000 and it would still be worth him staying in the UK.

:: And Labour is going to abolish non-dom status?

That is what Ed Miliband has said. It's part of his "broadest shoulders bearing the heaviest burden" approach.

However, the Conservatives point out that technically it is more small adjustments on how long people can be non-dom.

The full details of Labour's plans are as yet unclear, but it will allow only "real temporary residents" to take advantage of the tax benefits.

:: If non-doms had to pay UK tax how much would the country get?

Hundreds of millions according to Labour.

:: Then what are the drawbacks?

The UK could lose hundreds of millions, according to the Tories.

There is a fear if the very rich had to pay tax at the same level the rest of the population do then there would be a "flight of cash and talent", ie they would leave the UK and take the investment, fees they do pay, money they donate to the arts and charities with them.

This could be more costly in the long run. In the 13 years it was in power Labour did review non-dom status and decided not to scrap it.

:: Would the rich really move out lock, stock and barrel?

Just as a number of people cry flight, many also point out that London as a financial capital is a significant draw to the very wealthy and the attractions of that would not be wiped out by paying tax - although it is broadly accepted there would be some departures.

The Financial Times has spoken in support of scrapping the status.

Dragon's Den star Duncan Bannatyne, who last week signed up to a letter supporting the Tories on corporation tax, is in favour of the move.

:: Any other issues?

As Sky's Economics Editor Ed Conway points out: "If Labour do scrap non-dom status & bring in a mansion tax, one can only imagine the scale of collapse of the prime London property market."

:: And are all party members on the same page with this?

There is some confusion.

Tory Education Secretary Nicky Morgan said in interview that the Tories wanted those based in the UK to pay tax on all their earnings - even those from abroad. Although this has not been the Conservative standpoint.

Meanwhile, an interview with shadow chancellor Ed Balls has been unearthed in which he says the UK could not afford to scrap non-dom status.

:: What do other countries do?

The UK deal is very generous but others, including Belgium and the Netherlands, have similar rules.

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BG Group Backs £47bn Shell Takeover Offer

Struggling energy producer BG Group is recommending to shareholders a takeover offer worth £47bn from Royal Dutch Shell.

Details of the mega merger - the biggest in the industry for a decade - were released in a statement to the London Stock Exchange just hours after BG Group had confirmed "advanced discussions."

If the deal was to proceed it would create a company with a combined value of almost £180bn - overtaking HSBC to become the biggest on the FTSE 100 - and result in the 13th biggest merger ever.

The two firms said it was expected the cash and shares transaction would be completed early next year though it remains to be seen whether other major players in the oil and gas sector, such as Exxon Mobil, will make a higher offer for BG.

Shell's bid represented a premium of around 52% to the 90 trading day average and will result in BG shareholders owning around 19% of the combined group.

Video: Could Shell Be Outbid For BG Group?

Shares in BG rose 42% in early trading when the FTSE 100 opened for business while the value of Shell's B shares fell by 3%.

Wider energy stocks were boosted.

The merger is a response to the collapse in raw energy prices, which resulted in oil costs falling by as much as 60% last year from their June peak amid a glut in supply and weak demand.

Energy companies have been slashing costs and investment plans in response.

BG Group, a natural gas producer, was created in 1997 when British Gas demerged into two separately-listed companies, with Centrica having responsibility for the retail side of the business.

It has endured several problems in addition to weak prices including big cost over-runs on a huge gas project in Australia and major writedowns in its American and Egyptian businesses.

One of the most startling aspects of the agreement is that Helge Lund, BG's chief executive of just two months, is set to move on once the deal is completed having banked at least £20m in pay and share awards.

He became embroiled in a row over his pay package after joining the company and had agreed to slash his share award by 50% amid shareholder pressure.

The proposed combination will add some 25% to Shell's proved oil and gas reserves and 20% to production and it would make the company the second largest oil major behind Exxon Mobil.

Video: Oil: The Winners And Losers

Mr Lund said the deal "delivers attractive returns to shareholders and has strong strategic logic.

"BG's deep water positions and strengths in exploration... will combine well with Shell's scale, development expertise and financial strength."

Shell's CEO Ben van Beurden said it would make Shell the biggest player in liquefied natural gas (LNG).

It gives the company access to BG's multi-billion pound projects in Brazil, East Africa, Australia, Kazakhstan and Egypt though Mr Van Beurden admitted there could be competition issues to address.

Dr Christian Stadler, of Warwick Business School, has worked with Shell for the last 15 years.

He said the deal could be the opening shot in a new wave of mega-mergers.

"Quite a few oil companies are under cost pressure with no sense of the oil price recovering.

"Companies had got used to $100 a barrel and many need $40 to $60 to break even," he said.

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Digital Lender Atom Taps Investors For £75m

By Mark Kleinman, City Editor

The UK's first digital-only bank is tapping investors for £75m in fresh funding as it inches towards a green light from regulators that will enable it to open for business within months.

Sky News understands that Atom Bank, which is being set up by the former chairman of Metro Bank, has drafted in bankers from Canaccord Genuity to raise the new capital from existing and new investors.

The fundraising will take to approximately £100m the total sum raised by Atom Bank, which is targeting a launch later this year.

Its founders, Anthony Thomson and Mark Mullen, who previously ran First Direct, the highly-regarded lender owned by HSBC, believe there is a significant opportunity for a service-led bank with few of the overheads associated with high street branch networks.

A roadshow of prospective investors has been scheduled for this month, City sources said on Wednesday.

Atom's management is keen to target local businesspeople in cities such as Bristol, Leeds and Manchester as small shareholders, hoping that doing so will offer a natural platform to build its business banking services.

The company has already attracted a list of blue-chip shareholders, most notably including Jim O'Neill, the former Goldman Sachs chief economist, and Neil Woodford, the prominent fund manager who had indicated his antipathy to bank shares because of the ongoing compensation and legal costs related to past misconduct.

Sources said that Atom Bank, which is based in the North East, hopes to receive regulatory approval from the banking and City watchdogs during the summer.

Paul Pindar, a former chief executive of the outsourcing group Capita, and Jeremy Middleton, the Newcastle-based co-founder of Homeserve, are also among Atom's shareholder base.

Mr Thomson, who spearheaded Metro Bank's launch as the first new high street lender in more than a century, believes Atom will be well-placed to exploit the fast-growing demand for digital banking.

Lenders such as Lloyds Banking Group and Barclays are closing hundreds of branches, citing data from the British Bankers' Association which highlights, for example, a doubling of mobile banking app usage from 9.1m a week in 2012 to 18.6m the following year.

Atom has also a string of well-connected board members, although Lord McFall, the former chairman of the Treasury Select Committee, has in recent weeks opted to relinquish his role with the bank in order to take up a role on the new Banking Standards Board.

Atom could not be reached for comment on Wednesday.

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Amazon Founder To Launch Spaceship This Year

Amazon's billionaire founder Jeff Bezos is to launch a spaceship which could one day take passengers into Earth's orbit.

His space firm Blue Origin has finished testing the rocket engine which will power the New Shepard craft - and if the test flights are successful then it could be used to fly three people to a height of 62 miles.

The liquid-oxygen fuelled rocket will be attached to the main capsule for the maiden voyage later this year, which will take off from the company's Texas facility near Van Horn.

Dozens of unmanned flights are likely to take place before paying passengers would be allowed on board.

Tickets for future suborbital flights are not yet on sale, and Blue Origin has not released any pricing information.

It is likely to begin flying commercially within 10 years.

Meanwhile Virgin Galactic's SpaceShipTwo will resume test flights later this year after a fatal accident in California in 2014.

Other companies such as SpaceX are skipping suborbital space flight - part-way around the world - in favour of developing programmes for full orbital flight.

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