Friday morning business bulletin

Jul 4 2008 By Andrew Mernin

Bradford & Bingley’s major shareholders were today stepping in to salvage the lender’s £400 million funding plan after a US private equity firm walked away from the deal.

Texas Pacific Group, which was due to buy 23% of the company as part of a wider funding package, announced last night it was withdrawing its £179m cash injection after the lender’s investment status was downgraded by a ratings agency.

But B&B said a group of its largest shareholders including M&G Investment Managers, Legal & General Investment Management, Insight Investment and Standard Life Investments were now backing the deal.

The bank, which has been badly hit by the credit crunch, is raising the money to help shore up its finances.

Department store chain John Lewis today said its out-of-town stores suffered most in a sharp sales fall last week.

The group said sales fell 8.3% during the week to June 28 compared to prior year, led by hefty declines for home and electrical goods.

In a signal that rising fuel costs were also having an impact on trade, John Lewis said its out-of-town stores - such as Bluewater in Kent and Brent Cross in North London - fared the worst in terms of sales.

Bluewater’s sales dropped nearly 25% during the week, with Brent Cross posting a 17% decline.

``There is no doubt that trade in our shops proved challenging when compared to exceptional results last year," commercial director Phil Hullah said.

Training firm Nord Anglia Education today said it had agreed a £190 million private equity takeover.

The company’s is recommending a 460p-a-share offer from Baring Private Equity Asia after rejecting a lower approach from the suitor in June.

Baring is eyeing the healthy growth prospects for Nord’s international schools in emerging markets such as China.

Nord’s overseas schools offer a British-style education delivered mostly by fully qualified, British educated teachers.

Its shares rose more than 20% following the announcement.

The pound at 9am was US$1.9828 compared to US$1.9812 at the previous close he euro at 9am was £0.7928  compared to £0.7923 at the previous close.