Wednesday newspaper round-up: Reckitt, Tesla, Virgin Atlantic...

24th Jul 2024 07:16

(Sharecast News) - Reckitt is under pressure from top shareholders to revisit a sale of its nutrition business, following litigation and a series of other setbacks at the division that have sent the company's share price to decade lows. The FTSE 100 consumer giant acquired the Mead Johnson infant formula business in 2017 for $17bn - its largest-ever acquisition - and it has been plagued by mishaps ever since. Meanwhile, the wider group, which makes Lysol detergent and Durex condoms, has underwhelmed investors as it struggles to build back sales volumes following a period of high inflation and suppressed consumer demand. - Financial Times

Earnings at Tesla almost halved as discounts and price cuts pile pressure on the electric carmaker's profit margins. Elon Musk, the company's CEO, blamed "a bit of a hangover" after rivals cut prices "very substantially, which has made it a bit more difficult for Tesla". Tesla has sought to drum up interest in its plans for robotaxis, artificial intelligence and "genuinely useful" humanoid robots as deliveries slipped amid cooling demand. - The Guardian

Virgin Atlantic is to charge passengers a green levy on every flight as it seeks to cover the costs of using sustainable aviation fuel (Saf). Shai Weiss, the chief executive of the UK airline, confirmed plans for the environmental surcharge, which he said will come into force over the next 18 months. It comes as airlines gear up for the mandated use of Saf, which costs three times as much as kerosene. - The Telegraph

Informa is in advanced discussions to acquire Ascential, its rival events specialist, for £1.16 billion, providing a further boost to deal activity in the City. Ascential's board said it is minded to accept the 568p-per-share offer from the FTSE 100 owner of the Miami Boat Showand World of Concrete. - The Times

Sir Keir Starmer's plans for a housebuilding revolution risk breaching human rights laws, lawyers have said. They say the Government will face a string of legal battles over its proposal to reduce compensation to landowners forced to hand over their assets under compulsory purchase order (CPO) powers. As outlined in the King's Speech, the Government wants to reduce how much money is paid to owners and developers for use in housebuilding, saying it wanted to make the payouts "fair but not excessive". - The Telegraph