Wellcome Trust Toasts £100m Alibaba Profit

By Mark Kleinman, City Editor

Britain's biggest medical research charity is toasting a £100m-plus profit from the flotation of Alibaba Group, the Chinese internet giant that on Friday became the biggest technology company listing ever.

Sky News has learned that at the $68-a-share (£42) pricing settled upon by bankers advising Alibaba, the Wellcome Trust is sitting on a substantial paper windfall from two separate investments it made in the company's shares in recent years.

The news represents a significant boost for medical research funding in the UK and underpins the Wellcome Trust's highly-regarded investment strategy, led by its chief investment officer, Danny Truell.

Jack Ma, Alibaba's founder and now a multibillionaire as a consequence of the company's flotation, was present for the opening bell at the New York Stock exchange on Friday.

The share sale is eventually expected to raise $25bn (£15.3bn), making it the biggest initial public offering in history, once an over-allotment option is exercised.

The Wellcome Trust owns significantly less than 1% of Alibaba stock

It has overtaken Agricultural Bank of China's $22.1bn (£13.5bn) fundraising in 2010 and Facebook, which sold more than $16bn (£9.8bn)  of shares in 2012 to become the biggest-ever technology company listing.

Sky News disclosed the Wellcome Trust's investment in Alibaba in March.

Insiders said the Wellcome Trust, which is one of the world's most renowned medical research organisations, owns significantly less than 1% of Alibaba's shares, although the exact size of its holding is unclear.

A Wellcome Trust spokesman declined to comment.

Alibaba, which is headquartered in Hangzhou, one of China's so-called second-tier cities, has become a major player in the country's e-commerce industry.

It acts as an eBay-style intermediary in the supply and sale of goods online, having established marketplaces targeted at small business traders and consumers.

Using the brand-name Taobao, an e-shopping platform that in China has more than 500 million customers, Jack Ma, Alibaba's founder and chairman, has become one of the world's most successful technology entrepreneurs.

Talks between Alibaba and the Hong Kong Stock Exchange ended without success because of the company's desire to create an alternative shareholding structure that would have given executives additional control over the company.

12.06 | 0 komentar | Read More

Alibaba Bigger Than Facebook On Market Debut

Alibaba Boss Like A Rock Star At 'Epic' IPO

Updated: 7:22pm UK, Friday 19 September 2014

By Hannah Thomas-Peter, New York Correspondent

As Jack Ma swept past me on the floor of the New York Stock Exchange, I asked him how he was feeling.

He smiled at me, waved and mouthed "ok" before turning to a bank of cameras trained on the founder and spiritual leader of Alibaba.

"Ok," felt like a bit of an understatement.

Such was the demand and volume associated with the Alibaba IPO it took nearly two-and-a-half hours for the New York Stock Exchange's designated market maker (DMM) to decide on the right opening price.

The DMM is a person, not a computer. In this case it was Barclays' Glenn Carell.

He was also the DMM for the Twitter IPO, and is responsible for gauging appetite and supply, honing in on the right opening price for a stock.

It's a big job.

If there are technical problems he can override the system and trade on paper.

If there's uncontrollable volatility he can use his company's own cash to step in and stabilise things.

He told Sky News: "This is a very exciting day for me.

"It's the biggest IPO ever, and we really want to get the best price for opening.

"We have to go slow and get it right."

As traders crowded in on Glenn communicating orders from clients, electronic requests also poured in from across the world, flashing up on screens in front of his team.

Over two hours the price indicator range, which helps investors know how much the shares will cost once trading begins, crept from around $80 to over $90.

"Investors really want this stock," said Meridian Partners trader Jonathan Corpina.

"They see a very well-diversified company with huge international exposure.

"Even if US investors don't know the brand name, the product is easy to understand, and it's a good one."

As Glenn yelled "we're getting close!" the traders bunched together like rugby players in a scrum, whoops rang out, tension rose.

"Come on Glenn what's the price? Close it, close it," muttered one trader, his electronic trading tablet buzzing and beeping with impatient clients.

"$92.70!" came the shout, and trading began, starting with a short-lived 'pop' up to $99, before settling back down in Glenn's predicted range.

"Phew" said one NYSE executive to another.

"I tell you, that was pretty epic."

Glenn looked relieved as trading continued smoothly, confessing he would be having a glass of champagne later that evening.

Jack Ma may well do the same.

As he left the exchange to get in to his car, it was as if a rock star had left his concert.

Fans yelled and screamed and cheered and photographed for all they were worth.

Ma waved, smiled and slipped in to a waiting SUV.

12.06 | 0 komentar | Read More

Sky Forecast: Scotland Rejects Independence

Sky News is forecasting that Scotland has rejected independence, meaning the United Kingdom will remain intact.

Victories in Glasgow, Dundee and West Dunbartonshire had given the Yes campaign a major boost.

However, they were followed by substantial No victories in Stirling, Aberdeen and Dumfries and Galloway.

Scotland First Minister Alex Salmond tweeted: "Well done to Glasgow, our commonwealth city, and to the people of Scotland for such a incredible support."

David Cameron tweeted: "I've spoken to Alistair Darling - and congratulated him on a well-fought campaign."

Voters sided with the Better Together team in the Western Isles (10,544 to 9,195) and Clackmannanshire (19,036 to 16,350) - both key Yes targets.

The No strongholds of Shetland (9,951 to 5,669) and Orkney (10,004 to 4,883) saw the voters reject independence.

Mr Cameron is due to make a live TV address to the nation from 10 Downing Street once the result is confirmed.

The Prime Minister is expected to set out not only proposals to devolve more powers to the Scottish Parliament, but also significant changes for other parts of the country.

The referendum looks set to break records for turnout, with figures as high as 91% in East Dunbartonshire, 90.4% in East Renfrewshire and 90.1% in Stirling.

A poll taken by YouGov after people voted predicted a victory for No by 54% to 46% for Yes.

And even before the first results were announced, its president Peter Kellner told Sky News: "I can't see No losing this now.

"At the obvious risk of looking like a complete prat in eight hours' time, I would say it is a 99% certainty of a No victory."

Speaking on Sky News, Blair McDougall, the Better Together campaign director, welcomed the high turnout.

"There has been the biggest super-poll in Scottish political history today with probably the biggest turnout in recent political history."

Sky News has learned officials at the referendum count in Glasgow are investigating 10 cases of suspected electoral fraud at polling stations.

Although the votes are being counted at 32 regional centres - whichever side "wins" in each area is irrelevant.

All that matters is whoever gets the most overall - even if it is by a single vote.

:: Watch live: Scottish referendum coverage now on Sky News Sky 501, Virgin Media 602, Freesat 202, Freeview 132.

:: Live coverage is also available on sky.com/news and Sky News for iPad and on your mobile phone.

12.06 | 0 komentar | Read More

Scotland Vote: Market 'Relief Rally' Forecast

The pound has strengthened and the FTSE 100 is forecast to rebound by more than 100 points following Scotland's referendum.

Sterling, already pushed up on Thursday by speculation on markets that the independence vote had fallen short of the majority needed to leave the UK, gained another half of 1% as high as $1.65.2 in Asia trading.

Financial spreadbetters pointed to a rise of at least 1.2% when the FTSE 100 opened for business at 8am BST.

Banking stocks were predicted to see a particular lift.

More follows...

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Billionaire Alibaba Founder Shows US Doubters

By Mark Stone, Asia Correspondent in Beijing

At the northern end of the runways at the world's second busiest airport is a huge warehouse.

Inside, a labyrinth of conveyer belts and an army of workers.

This is the heart of a distribution operation that is as slick as it is mind-boggling.

YTO Express is China's answer to DHL or FedEx but it is growing at a rate its western cousins can only dream about.

"From the beginning the average daily volume was only about 2,000 pieces. Now our average daily volume is 6.5 million pieces," said Li Shaoming, YTO Express's Director of Overseas Business.

YTO Express owes its massive expansion to the success of Alibaba

We watch as a fleet of laden lorries pull up at one side of the warehouse.

Parcels are unloaded onto conveyer belts. Over an hour, a combination of barcodes and manpower shuffles the parcels from conveyer to conveyer.

At the other end of the warehouse, they are loaded onto more lorries and driven away.

In between the functioning conveyers, are more under construction.

The company has seen a growth rate of 50% every year for the past five years and it cannot keep up.

YTO Express can thank one man for its success.

Retailers like Marks & Spencer are 'renting' virtual shop floors on T-Mall

Jack Ma is the most successful businessman you have never heard of - the founder of Alibaba.

Some 80% of all online retail sales in China are via Alibaba's platforms: Taobao, T-Mall and Alipay.

The company has stakes in Sina Weibo (Chinese Twitter) and YouKu.com (Chinese YouTube).

It is Amazon, eBay, PayPal, Twitter and YouTube all rolled into one and it's bigger than all of them.

Across China, small businesses have been linked together and consumers empowered to buy.

Taobao is Alibaba's answer to Amazon.

T-Mall is something new. Think of a virtual shopping centre; a place where the world's brands are available with just one click.

Alibaba founder Jack Ma has built up a personal wealth of £12bn

It is not exactly revolutionary stuff, but no-one else has done it.

Western companies like Marks & Spencer are 'renting' virtual shop floors on T-Mall, opening the door to China's 600 million internet shoppers.

Remember, the individual wealth of Chinese consumers is growing daily.

For foreign investors wary of diving into China with bricks and mortar, T-Mall is a perfect alternative.

Alipay is similar to PayPal, accounting for half of all online payment transactions within China. It provides a verification process and payment system for customers - a secure online 'counter' for customers.

Uniquely, Alipay will only transfer money to sellers once the customer has accepted and is satisfied with the product.

Taobao is Alibaba's answer to Amazon

With China's lack of consumer trust, this has proved particularly attractive.

Essentially, with Alibaba, Jack Ma has made it incredibly easy for China's new, hungry online community to buy, and for companies across China and abroad to sell.

Alibaba charges for advertising and commission paid by companies who use its virtual marketplaces.

According to its own figures, Alibaba has 279 million active users and 8.5 million sellers.

Just 15 years ago, Jack Ma went to America with his ambitions. No one took him seriously.

He is back now, with a world-record breaking IPO (Initial Public Offering) on the New York Stock Exchange and a personal wealth of £12bn.

12.06 | 0 komentar | Read More

Jobless Rate Nears Six-Year Low And Wages Rise

Official figures show the UK's jobless rate has fallen to its lowest level for six years, with wage rises starting to pick up.

The Office for National Statistics (ONS) said the rate fell to 6.2% in the three months to July - more than was expected by economists - for the first time since September-November 2008.

The number of people claiming Jobseeker's Allowance fell in August for the 22nd-consecutive month - by 37,200 - to 966,500.

It meant the total had dropped below one million for the first time since September 2008.

The trend of employment growth continued with an increase of 74,000 to 30.6m recorded between May and July.

Scotland's unemployment rate was better than the UK average

It left the unemployment total at 2.02m, the ONS said, with the economy producing the largest annual fall in unemployment since 1988.

While pay growth continued to lag inflation in the period, there was an improvement in average weekly pay increases.

The ONS measured pay, including bonuses, rising 0.6% in the year to July from an annual decline of 0.1% the previous month.

The wage reduction was explained last month as being a result of companies delaying bonus awards last year to help their employees benefit from a cut in income tax.

The Bank of England has put pay at the centre of its thinking on when to raise the base rate of interest from its record low of 0.5%.

It has also emerged that two members of its Monetary Policy Committee continued to support a rate increase this month in a 7-2 vote despite official figures highlighting weak wage growth.

Martin Weale and Ian McCafferty argued for the second-consecutive month that the Bank needed to act now in order to pre-empt wage and inflationary pressures further ahead.

The Bank last month halved its forecast for average wage growth last month, saying it now expected average salaries to rise by just 1.25% this year.

The Chancellor had the Scottish independence referendum on his mind when he tweeted his reaction to the jobless numbers.

George Osborne said: "Today's employment stats mark another step towards full employment. But still much more to do."

He added that unemployment in Scotland was down to 6%, below the UK average.

Stephen Timms, Labour's shadow employment minister, said: "Today's fall in overall unemployment is welcome, but the new figures have shown working people are seeing their pay falling far behind the cost of living.

"A Labour government will freeze gas and electricity bills, raise the minimum wage and get more homes built to tackle the cost-of-living crisis".

12.06 | 0 komentar | Read More

Tax Crackdown: World Profit-Shifting Ban Looms

By Ed Conway, Economics Editor

International authorities have unveiled the first step in a major crackdown on billions of dollars' worth of international corporate tax avoidance, warning that existing rules are not fit for purpose.

The Organisation for Economic Co-operation and Development (OECD) said its plan would help prevent the kind of legal corporate tax avoidance which it is alleged has been used extensively by companies such as Apple, Google and Starbucks.

Its detailed new proposals, seven of which are published today, are largely aimed at stemming the extent to which companies can shift profits from one country to another in order to take advantage of lower tax rates.

Such practices are particularly common among tech businesses and other companies whose activities are not easily traced to single countries.

The OECD report said: "Gaps and mismatches in the current, outdated tax rules can make profits 'disappear' for tax purposes, or allow the shifting of profits to no-or low-tax locations where the business has little or no economic activity".

Although there are few reliable estimates of these practices - also known as base erosion and profit shifting (BEPS) - they are thought to have contributed to billions of dollars of tax avoidance by leading multinationals.

According to one calculation, there is more than $2trn held by US multinationals in offshore financial centres which, at a 30% tax rate, would be equivalent to around $700bn in missing government revenue.

The reports suggests this money could be used support the fragile economic recovery after years of austerity and "social hardship".

Although such tax avoidance is legal, the report says taxpayer trust has been damaged by these practices.

The OECD says the measures are aimed at promoting the "spirit of the law - not just the letter".

They were described by auditors PwC as "the most significant change to international tax in modern times".

The proposals, which are long and complex, aim to close numerous loopholes in domestic and international laws which allow companies to shift such profits around the world, using a variety of financial instruments.

"The BEPS Project marks a turning point in the history of international co-operation on taxation", the report said.

However, it is likely to be some years before the plans come to fruition. A second half of the report, including more proposals, is due next year. The plans will need then to be approved by the G20, before individual governments have an opportunity to implement them.

12.06 | 0 komentar | Read More

Salmond: No One Can Stop Scotland Using Pound

How Facebook Shaped The Referendum

Updated: 8:27am UK, Tuesday 16 September 2014

By James Matthews, Scotland Correspondent

It's Facebook 'wot might win it.

Sure, the August poll surge in support for independence was down, in part, to traditional campaigning. Meetings and megaphones have thrust the Yes campaign "in yer face" over years leading up to Thursday.

But why, according to the opinion polls, did it all seem to come together in the space of a few weeks? Why, suddenly, the knife-edge?

In the word of a senior Yes strategist: Facebook.

I chatted to him as the Alex Salmond Labour Heartland tour rolled up at its latest venue, playing to the target market through the TV cameras. It was a big, well-attended, photo-call - the staple diet of the political campaign.

As the strategist stood back from the madding crowd, he told me that the magic formula didn't lie in the blood and snotters of a mass media scrum, but in the quiet exploitation of social media. Facebook, in particular.

The challenge for supporters of Scottish independence, historically, has been in turning it from a fringe notion into something people allow themselves to contemplate. Check their election success at the Scottish Parliament to see the considerable style with which that's been accomplished.

Scots have taken the hop and a step. Why, now, might they be shaping to take the jump? 

The Yes strategist pinned it on Facebook.

"Ask yourself," he said, to paraphrase him, "if a parent wants to check on their youngster who's on a night out, what do they do?  They don't phone them, because they probably won't answer.

"They might text ... but, invariably, they'll Facebook them. And when they do, dozens or hundreds of their friends will see it. It's a chat network that plugs people into the other people they value. There are no better opinion-formers for someone than the friends and family they like and trust.

"So, as a campaigning tool, it's been very effective. We encourage Yes supporters to spread the word to their Facebook friends and, over time, you build a network around people that builds a political case.

"Facebook is more effective than Twitter. You put something on Twitter and you reach people within the political bubble. With Facebook, you tap into a far bigger community."

So why the spike in support for Yes after polls that had No with a consistent and strong lead over the course of a two and a half year campaign?

"People just didn't turn their mind to the referendum until it actually came round. It's been in the far distance for most of the campaign but, now that people realise they're getting to decision time, large numbers are now weighing up the arguments ... and they're deciding having had their views on independence softened by Facebook friends."

There were more than 10 million referendum-related interactions on Facebook in the five weeks to September 8 - 85% of which was from Scotland.

He said he reckoned the Yes campaign had been four or five times more active than their opponents on Facebook and pointed out a Facebook chat with Scotland's pro-independence First Minister Alex Salmond attracted around 5,000 questions.

Data suggests the Yes campaign is slightly in the lead with 2.05 interactions in Scotland compared to 1.96 million for the no campaign.

The strategist said the campaigning beauty of social media was that it eliminated the need to rely on mainstream media coverage, that the likes of Facebook cut out the middle man and enabled them to reach out to the voter directly.

Just how many the campaign has touched and what effect it has had, we'll find out soon enough.

12.06 | 0 komentar | Read More

Emotional Tug Of Freedom Against Economic Risk

By Faisal Islam, Political Editor

The Prime Minister has signed off from the independence referendum campaign with a final speech in Aberdeen.

Facing a friendly audience of Scottish pensioners, oil executives, and Conservatives, the Prime Minister pleaded with Scots to reject independence in the too-close-to-call referendum on Thursday.

Arriving to a slick marketing video featuring three centuries of historic achievements of the Union - from Pankhurst to Wilberforce and Darwin to the British Lions - an emotional PM told the audience: "We want you to stay. Head and heart and soul, we want you to stay.

Alex Salmond: "Cameron's prints are all over a scaremongering campaign"

"Please don't mix up the temporary and the permanent. Please don't think: 'I'm frustrated with politics right now, so I'll walk out the door and never come back'.

"If you don't like me - I won't be here forever. If you don't like this Government - it won't last forever. But if you leave the UK - that will be forever.

"Yes, the different parts of the UK don't always see eye-to-eye. Yes, we need change - and we will deliver it. But to get that change, to get a brighter future, we don't need to tear our country apart."

There would be no "trial separation" but the prospect of a "painful divorce" for the UK under a Yes vote.

The PM's key message, though, was of "safer change". The status quo was not on the ballot paper. He reassured his audience that a No vote would trigger "a major, unprecedented programme of devolution with additional powers for the Scottish Parliament," that Gordon Brown's timetable of delivery by January was "set in stone".

He said it amounted to an offer of guaranteed change for the Scottish people without losing the "UK pension, the UK pound and the UK passport".

The question, of course, is whether the Scottish people are going to trust such promises, as there's a history of that type of thing not being delivered by Westminster.

Some Conservative backbenchers are very nervous of the promises offered to keep Scotland in the Union. In an interview with Sky News Tonight, the leader of the Better Together No campaign Alistair Darling addressed this point and said Labour had promised and did deliver the Scottish Parliament.

But few can tell how such late promises are going to go down with many Scottish people distrustful of what they see as a Westminster elite.

Mr Darling also told Sky News of his concern about how the tone of the campaign had soured, and referred to protests by Yes campaigners against journalists as "deeply sinister".

His assessment that some of the campaigns against out-of-favour journalists by the Yes campaign - posters and the like - were "deeply sinister".

He said there was a quiet majority who might be afraid to speak out, who will say "no thanks" to independence on Thursday.

He also said he found it galling that EU nationals get a vote in Scotland whereas Scots who have moved down south don't get a vote. Although he accepted that this was the agreed system for the referendum.

The broader picture, though, is what some politicians are calling the "air war" - big ideas, facts, debates about currency union and devolution - is over.

The next two days of campaigning is all about the "ground war" - getting the vote out and going into people's homes. And this message of Safer Change is very specifically calibrated - not at Yes voters or No voters - but the fact there is a rump of Scots who have a bit of both Yes and No within them.

Alistair Darling told Sky News that the tone of the campaign had "soured"

They are trying to tip that balance away from the emotional tug of freedom for Scotland towards a hard-headed assessment of economic risk.

Earlier, First Minister Alex Salmond visited Edinburgh Airport where he claimed Mr Cameron's "fingerprints are all over a scaremongering" campaign by banks, businesses and leading retailers who have voiced their concerns over independence.

Mr Salmond said: "The next time he (Mr Cameron) comes to Scotland it will not be to love-bomb or engage in desperate last-minute scaremongering, and following a Yes vote it will be to engage in serious post-referendum talks in the best interests of the people of Scotland and the rest of the UK, as pledged in the Edinburgh Agreement.

The Prime Minister, abundantly self-aware that there are limits to the persuasive appeal of any Conservative prime minister in Scotland, will now return to London for the remainder of this closely-fought campaign. The Labour Party will step up its campaign with the return of Opposition leader Ed Miliband, on Tuesday.

12.07 | 0 komentar | Read More

Westminster Leaders Pledge 'No' Vote Powers

By Niall Paterson, News Correspondent

A promise of more powers for Scotland if it rejects independence has been signed by the leaders of the three main parties at Westminster.

David Cameron, Ed Miliband and Nick Clegg have put their names to a letter which appears on the front page of the Daily Record newspaper.

It promises "extensive new powers" for the Scottish Parliament "delivered by the process and to the timetable agreed" by the three parties.

All three Westminster party leaders are urging a No vote in the referendum

But independence campaigners argue a Yes vote in Thursday's referendum is the only way to guarantee Scotland gets the powers it needs.

In the letter, the party leaders say they agree that "the UK exists to ensure opportunity and security for all by sharing our resources equitably across all four nations".

The joint letter also states: "And because of the continuation of the Barnett allocation for resources and the powers of the Scottish Parliament to raise revenue, we can state categorically that the final say on how much is spent on the NHS will be a matter for the Scottish Parliament."

A spokesman for Yes Scotland said: "It's clear that project panic is willing to say anything in the last few days of the campaign to try to halt the Yes momentum - anything except what new powers, if any, they might be willing to offer.

"The reality is that the only way to guarantee Scotland gets all the powers we need to create jobs and protect our NHS is with a Yes vote on Thursday - so that we can use our enormous wealth to create a better and fairer country."

With the referendum just days away, the polls suggest the crucial vote will go to the wire.

Little wonder then that as the campaign enters its tightly balanced and ferociously fought endgame, passion has occasionally turned to anger.

Both sides now accuse the other of intimidation - Yes crying foul and accusing Downing Street of an orchestrated campaign of fear; Better Together claiming that their campaigners and supporters are routinely shouted down, bullied and abused.

The party leaders' pledge appeared on the front of the Daily Record

No doubt in every town across Scotland reasoned debate has on occasion morphed into ill-tempered shouting match.

Yet both sides now recognise the need, after the vote, to move forward as one nation, independent or otherwise.

Leader of the Better Together campaign, Alistair Darling, told Sky News: "Whatever the result, it's up to everyone whether you're a politician or whether you're not to make sure that as a country we work together because that's in all our interests."

In truth, there is little that has happened which hasn't happened in every election since time immemorial.

Online, the invective is certainly brutal.

Keyboard warriors feel free to deploy some pretty hideous insults in support of their argument.

Yet that was as true during the 2005 election, when the blogosphere was a key part of the electoral narrative.

And it is certainly the case that politicians being heckled and, yes, abused in pretty unparliamentary language, is nothing new.

Alex Salmond argues only a Yes vote can deliver the powers Scotland needs

Still, the heckling does seem to be largely directed at Better Together.

And online, again the weight of less-than-constructive criticism does seem to be borne by those on the No side.

Scotland's Deputy First Minister Nicola Sturgeon said: "Nobody should be intimidating, nobody should feel intimidated.

"I really strongly believe that based on my own experiences on the campaign trail that we're engaged in something really spectacular in Scotland right now."

12.06 | 0 komentar | Read More

Retailer Phones 4u 'Forced Into Administration'

Thousands of jobs at Phones 4u are at risk after the retailer says it was forced into administration when network operator EE joined Vodafone in cutting ties with the firm.

The retailer, which employs 5,596 people, says its 550 standalone stores will be closed until the administrators decide on whether the business can reopen for trading.

The company said the decision by EE not to renew its current contract, which is due to end in September next year, was a "complete shock" and meant it would be left without a single network partner after Vodafone said earlier this month that it would not extend its agreement.

The retailer said the decisions of EE and Vodafone were a 'complete shock'

Phones 4u says it has a healthy balance sheet with profits of more than £100m, but had no option but to go into administration.

Chief executive David Kassler said: "Today is a very sad day for our customers and our staff.

"If the mobile network operators decline to supply us, we do not have a business.

"A good company making profits of over £100m, employing thousands of decent people has been forced into administration.

"The great service we have provided should have guaranteed a strong future, but unfortunately our network partners have decided otherwise.

"The ultimate result will be less competition, less choice and higher prices for mobile customers in UK."

The business was set up by John Caudwell, who sold it in 2006 for £1.5bn

Staff have been asked to report to work as normal on Monday morning when they will be briefed by management.

Phones 4u said all mobile contracts bought through Phones 4u will remain unaffected and the networks will continue to provide mobile services to these customers.

The process of appointing PwC as an administrator is expected to take place on Monday.

Stefano Quadrio Curzio of BC Partners, Phones 4U's private equity owner, said: "Our overriding concern is for all the dedicated hard-working employees of Phones 4u at a time of uncertainty for the company.

"Vodafone has acted in exactly the opposite way to what they had consistently indicated to the management of Phones 4u over more than six months.

"Their behaviour appears to have been designed to inflict the maximum damage to their partner of 15 years, giving Phones 4u no time to develop commercial alternatives.

"EE's decision on Friday is surprising in the context of a contract that has more than a year to run and leaves the board with no alternative but to seek the Administrator's protection in the interests of all its stakeholders."

A spokesperson for EE said: "In line with our strategy to focus on growth in our direct channels and to move to fewer, deeper relationships in the indirect channel, and driven by developments in the marketplace that have called into question the long term viability of the Phones 4u business, we can confirm that we have taken the decision not to extend our contract beyond September 2015.

"We will monitor developments and work to provide any necessary support for customers who joined EE through Phones 4u."

The business was set up by entrepreneur John Caudwell in the mid-1980s.

By the time he sold it for £1.5bn in 2006 it was selling 26 phones a minute and employed 10,000 people. It generated sales of more than £2.25bn.

12.06 | 0 komentar | Read More

PM To Make Final Plea Against Scottish Split

What Happens If Scotland Leaves The Union?

Updated: 2:00pm UK, Tuesday 09 September 2014

Supporters of both sides of the Scotland referendum debate are mounting a final push for votes before the ballot on September 18. Sky News looks at what will happen if Scotland votes Yes to exit the UK:

:: 1.  When would Scotland become independent?

The Scottish Government has set a date 18 months from now, March 24, 2016, for Scotland's independence day.

:: 2. What would happen immediately after a Yes vote?

The first step on the morning after the result comes in would involve the forming of teams from both the Yes and No camps to take part in behind-the-scenes negotiations. SNP leader Alex Salmond has already indicated his deputy Nicola Sturgeon would lead the talks for the Scottish nationalists. It is not yet known who would spearhead the Westminster team.

:: 3. What amendments would there be to the constitution?

The negotiating teams would devise a new constitution for Scotland and dissolve the 1707 Act Of Union.

:: 4. What would happen to the Queen?

The Yes campaign has said Her Majesty would stay as monarch so it would not be surprising if Mr Salmond seeks an audience with the Queen in the days and weeks after the vote.

:: 5. Would Scotland take part in the May 2015 General Election?

Scottish voters would still be able to take part, but their representatives would only potentially serve a 10-month term in office.

:: 6. What currency would Scotland use?

That is still being thrashed out and yet to be decided. The three main Westminster parties - the Conservatives, Labour and the Liberal Democrats - have ruled out a currency union, although Mr Salmond insists an independent Scotland would keep the pound.

:: 7. How much of the UK national debt would be transferred to Scotland?

This is not yet known, but it is likely to be worked out on a per capita share - based on population.

:: 8. What would happen to Scotland's standing in global affairs?

Scotland would have to negotiate its own entry into the European Union and Nato, and the population would have to decide whether they want to have the euro.

:: 9. What effect would independence have on Scotland's defence force?

The issue of defence is probably one of the most emotive - and uncertain. Scotland is likely to have its own independent defence force, in time, depending on practicalities and finances, for it has its North Sea oil and fishing industries to protect. Scottish nationalists are opposed to having the Trident nuclear deterrent and would want to see it removed from Faslane, on the west coast of Scotland, as soon as possible. However, Nato is fundamentally a nuclear alliance, and if Scotland struggles to become a member of Nato, it is likely to struggle to join the EU too, which would have a big impact on the Scottish economy. There is also the matter of service personnel - some of which will be currently serving in historic English regiments. Any division of troops north and south of the border would take years.

:: 10. What would independence mean in terms of travelling across the Scotland-England border?

An independent Scotland would control its own borders. The SNP would like to see an open border, but Home Secretary Theresa May has already warned she will not allow Scotland to be used as a back door for immigrants getting into England if Scotland adopts a looser immigration policy. So, we could see passport controls on the border between the two countries.

:: 11. Would Scottish citizens need new passports?

A lot depends on whether Scotland joins the EU. Scottish citizens would be entitled to a Scottish passport, but a UK passport would still be valid until it expires. British citizens who were habitual residents in Scotland would be automatically considered Scottish citizens.

:: 12. What would happen to benefits and taxes?

Benefits and taxes will become the responsibility of the new Scottish government. In its white paper on Scotland's independence it says the Scottish Parliament will ensure that the personal tax allowance and tax credits increase in line with inflation.

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Scotland: Phone Firms In Independence Warning

A "Yes" vote in the Scottish independence referendum on Thursday could lead to increased costs in the telecommunications industry, leading phone companies have said.

The chief executives of six companies - BT Group, TalkTalk Group, Telefonica UK (O2), Vodafone UK, EE and Three UK - warn in an open letter that a number of "strategic and operational" factors would need to be resolved in the event of Scotland voting to separate from the UK.

Sky's City Editor Mark Kleinman revealed the companies were in talks about a joint statement on the issue on Friday.

In the letter, the companies said they may need to modify networks and consider whether to modify the services offered in an independent Scotland.

Services such as the roll out of faster broadband to parts of Scotland could be affected, the document says.

While the firms said their commitment to providing and investing in high-quality, affordable services to all of their customers in the UK will be "completely unaffected" by the outcome, a number of issues would need to be resolved.

The letter says: "Specifically, we would need to know how a Scottish telecoms industry would be regulated. Would there be continuity with the current European Union regulatory framework so that we would continue to operate across the border with common infrastructure under a single set of rules?

The majority of opinion polls suggest the 'No' camp has the edge

"What approach would the government of an independent Scotland take to the radio spectrum - currently licensed on a UK-wide basis - without which mobile networks cannot operate?

"We may also need to modify our networks to reflect the reality of an independent Scotland; and we may need to consider whether to modify the services offered in Scotland, given its relatively demanding topography and relatively low population density.

"Any of these factors could lead to increased industry costs."

The companies said that they remain "fully committed" to their customers, employees and operations in Scotland whatever the outcome of the poll.

The referendum campaign has entered its final weekend

The warning comes after a number of retailers said customers would face higher prices in the event of independence.

Scottish Labour leader Johann Lamont said: "We now have clear warnings from some of the largest employers in Scotland - Asda, John Lewis, B&Q, Marks and Spencer, Timpson, BT, TalkTalk, Iceland, O2, Vodafone, EE, Three and others - that costs for everyday things would go up if we leave the UK.

"No doubt the nationalists will promise another day of reckoning for these firms, but the people of Scotland are more rational and pragmatic about these things. We don't deny the reality. Being part of the UK keeps costs down for families here in Scotland."

Mr Salmond told Sky News earlier that what he calls an "orchestrated campaign of intimidation" will not work and there will be a "Yes" vote on Thursday.

"The people of Scotland are not going to have big government orchestrating big oil and big supermarkets to tell us we can't run our own country," the First Minister said.

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Scotland Referendum Result 'Too Close To Call'

The latest opinion polls show the Scottish referendum campaign is "on a knife-edge" - with the "Yes" and "No" campaigns ahead in different surveys.

Three polls - all of which exclude undecided voters - give the "No" campaign the advantage on the final weekend of campaigning, but pro-Independence campaigners will be boosted by another which shows them ahead by a large margin.

A poll commissioned by the Better Together campaign and carried out by Survation has the "No" vote on 54% and the "Yes" camp on 46%.

Another, for The Observer newspaper, gives the "No" campaign a six point lead - 53%-47%.

Meanwhile, a poll carried out for The Sunday Times newspaper has "No" on 50.6% and "Yes" on 49.4%.

A poll for the Sunday Telegraph however showed support for independence at 54%, a nine-point swing from their last online poll, with support for the "No" campaign at 46%.

But the poll's sample size - 705 people - means its margin of error is higher than most surveys.

The Sunday Telegraph poll that shows the 'Yes' side ahead

Polling expert John Curtice said the poll came with "a substantial health warning".

Sky's Scotland Correspondent James Matthews said: "It tells us what we already know: this is going to be extremely tight, coming down to the wire, all the cliches fit.

"It really is on a knife edge and the intense campaigning over the remaining days will clearly be targeted at the undecideds, numbering something like half a million, they clearly hold the key to this referendum."

Reacting to the latest snapshots of public opinion, Blair Jenkins, chief executive of Yes Scotland, said: "Taken in the round, the polls show that the referendum is on a knife-edge.

"There is everything to play for, and this will spur on everybody who wants and is working hard for a 'Yes' to redouble their efforts.

The final weekend of campaigning has seen both sides out in force

"As we say in response to all the polls, we are working flat out to ensure that we achieve a 'Yes' vote, because it's the biggest opportunity the people of Scotland will ever have to build a fairer society and more prosperous economy."

The latest polls came after First Minister Alex Salmond hit out at banks and businesses that have warned about the effects of independence.

Deutsche Bank said a "Yes" vote could be a mistake akin to those that sparked the Great Depression, while three more retailers said customers would face higher prices.

Six telecoms companies also released an open letter warning such an outcome could mean increased costs in the industry.

But Mr Salmond said in an interview with Sky News: "The people of Scotland are not going to have big government orchestrating big oil and big supermarkets to tell us we can't run our own country."

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