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Its demerger from its US parent, Spherion, in March only went ahead after bankers slashed the price of Michael Page shares when investors turned cautious because of volatile markets.Investors had initially hoped to get 190p to 250p a share, valuing the company at £712.5m to £937.5m. Michael Page eventually came to market capitalised at £656.25m.. A leading German politician yesterday stepped into the fight over British membership in the euro, saying the UK would join the single currency during the lifetime of this Parliament. A leading German politician yesterday stepped into the fight over British membership in the euro, saying the UK would join the single currency during the lifetime of this Parliament.
Hans Eichel, the finance minister, told a panel discussion in Frankfurt: “I think Britain will become a member of the monetary union and that there will be a vote during the lifetime of the current Parliament.”His intervention was undermined by a sharp fall in the value of the euro, which plunged by 1.2 per cent – its steepest one-day fall for a month. But Mr Eichel’s comments could revive market speculation that the Labour government will use its re-election landslide to push ahead on joining the euro.The pound fell immediately after the election but reclaimed its losses after Gordon Brown, the Chancellor, said the Government would not be pushed into joining before the economic conditions were right.

The Prime Minister also said before the vote that the Government would assess whether the UK had met the Treasury’s five economic tests for joining within two years of the new Parliament, or June 2003. This could allow a referendum that autumn, with euro notes and coins to be brought in two years later.The pound, which has fallen 1.7 per cent against the euro this month, gained slightly yesterday against the single currency. The euro fell across the board after figures showed that French business confidence hit a two-year low in June, as firms reported further drops in orders and output. A monthly survey of 4,500 firms published by the French government’s statisticians showed that confidence dropped this month to its lowest point since June 1999. The single currency fell Wednesday to $0.8495 from $0.8597.Analysts said the European Central Bank would feel pressure to follow the US Federal Reserve and cut interest rates next week. But Ernst Welteke, the Bundesbank president and member of the ECB, said: “There is no need for further action.”.

Bentalls, the 134-year-old department store chain, yesterday surrendered its independence and agreed to a £70.8m takeover bid from privately owned rival Fenwick. Bentalls, the 134-year-old department store chain, yesterday surrendered its independence and agreed to a £70.8m takeover bid from privately owned rival Fenwick.
The business, based in Kingston upon Thames and owner of six stores across the South-east of England, is being snapped up for 173p a share in cash, a 47 per cent premium to Bentalls’ share price before it announced it was in bid talks three weeks ago. The takeover will hand a £27m windfall to the Bentall family, including the chairman, Edward Bentall. They control about 38 per cent of the company, directly and through a series of trusts.Shares in Bentalls raced ahead 26 per cent to 171.5p yesterday. The shares have put in a stunning performance since Mr Bentall and his chief executive, David Elliott, spurned an approach from middle-market store chain Allders last year.The price was wallowing at 55.5p in early 2000, but takeover hopes have propelled a sharp recovery. The shares have outperformed the stock market by 100 per cent in the past 12 months and the department stores sector by 80 per cent.Bentalls directors and members of the Bentall family, together controlling 6.3 per cent of the company, have agreed to accept the offer even if a rival bid is made.Fenwick, run by the eponymous and publicity-shy family, has also received letters from representatives of Bentall family trusts and institutions controlling 45.6 per cent saying they intend to accept the offer.Mark Fenwick, chairman of Fenwick, said: “Bentalls is a good strategic fit for Fenwick.” Edward Bentall said the deal would offer employees the chance “to join a larger group with a strong reputation”.Bentalls has managed a sustained improvement in its retail performance since it appointed Mr Elliott, a former Selfridges employee, to revitalise the business in February 1999.It sold its loss-making Bristol store in January to House of Fraser for £16.4m, while the rest of the chain is now producing like-for-like sales growth. Margins have improved and in-store presentation has been worked on.

Bentalls has wooed fashion-conscious customers by bringing in top designer brands such as Nicole Farhi and DKNY.But the company is a small player in a highly competitive market and needs to join forces with another operator.Fenwick, founded more than 100 years ago, said it plans to keep the Bentalls name. The flagship store in Kingston will add to Fenwick’s top stores, including those in London’s New Bond Street and Brent Cross.Although Bentalls has just two fewer stores than Fenwick, the company’s performance is markedly different. While Fenwick made a profit of £32.1m in the year to January on sales of £223.2m, Bentalls could manage only a £8.3m loss on turnover of £126.5m.. Tomkins, the engineering group, reassured the City yesterday by reporting that the downturn suffered in its US businesses at the start of the year appears to have stabilised. Tomkins, the engineering group, reassured the City yesterday by reporting that the downturn suffered in its US businesses at the start of the year appears to have stabilised.
Shares in the automotive, construction and air systems group rose 3.5 per cent to 183.25p after David Newlands, Tomkins’ chairman, said: “We have not seen a continuation of the sharp deterioration which we experienced in some of our markets in the first quarter of this calendar year, and trading in our businesses is in line with expectations.”Operating profit for the year to 30 April fell by 10 per cent to £308m, in line with forecasts, and margins were lower across all three main divisions.