The much-talked-about TSB Bank comeback hit a snag as its website crashed on the first day of its split from Lloyds.
Lloyds Banking Group (LON:LLOY) had assured customers of a “seamless” transition to TSB, but it already appears to have broken this promise just hours after the relaunch after new TSB customers were unable to access their accounts online.
The site is now back up and running, having launched yesterday morning, but the gaffe will have left Lloyds boss Antonio Horta-Osorio red-faced as he assured customers of a smooth switch to TSB.
TSB will be the eighth biggest bank on Britain’s high streets, with Lloyds’ 4.6mln customers moving across to the revamped brand.
TSB merged with Lloyds in 1995, but the brand is being revived after last year’s deal to sell the 631 branches to the Co-op fell through after questions were raised over the state of Co-op’s finances.
Gary Greenwood at Shore Capital says the bank will be built up for an IPO in 2014 and then a sale, by which point he reckons it will be worth around £1.5bn – almost double the price Co-op were going to pay for it in 2012.
“Only time will tell whether TSB will be successful in taking market share from its larger peers, but we would be surprised if the competitive landscape for the UK retail banking industry materially changes in the short-term as a result of this,” said the analyst.
Vodafone (LON:VOD) may have clinched the deal to sell its 45% stake in Verizon Wireless last week, but its acquisition of Germany’s Kabel Deutschland could be in jeopardy.
That’s according to the Financial Times, which suggested the telecoms giant could fail to drum up enough support to reach the 75% acceptances needed from Kabel’s shareholders by Wednesday.
Vodafone released a statement today, urging those who have not yet voted to do so before the bid lapses.
Once again, Primark propped up sales at AB Foods (LON:ABF) as the food business continues to struggle.
In a pre-close period trading update covering the year to mid-September, the group said its adjusted operating profit in the second half of the financial year will be ahead of expectations, thanks to a flying finish to the year by Primark.
As for the foods part of the business, the Agriculture, Ingredients and Grocery businesses are performing well but the Sugar business has its problems.
Tate & Lyle (LON:TATE) can sympathise with its rival as it was downgraded by UBS today on a dim outlook for its sweeteners business.
The Swiss broker has decided that the company’s valuation is too high and not a fair reflection of the risk of falling prices of sucralose, which is used in sweeteners.
Analyst Alan Erskine, who cut the stock to a ‘sell’ rating, said that without sucralose, Tate & Lyle is a “horizontally integrated corn processor whose gross margins can be volatile and whose return on capital is significantly below that of branded consumer goods companies”.
Red Rock Resources (LON:RRR) caught the eye as it updated investors on the progress of its plans to sell its assets in Greenland and Colombia.
It said that confirmation of an offer for its 60% stake in Nama Greenland is “subject to administrative clearance which is being sought from the relevant authority”, while Ashmont Resources is set to visit its El Limon gold mine in Colombia ahead of making a potential offer.
Selling both assets will leave Red Rock with a copper-god exploration project in Kenya.