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.

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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.

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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.

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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.

More follows...

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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".

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Billionaire Alibaba Founder Shows US Doubters

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The e-commerce giant is Amazon, eBay, PayPal, Twitter and YouTube all rolled into one - and it's bigger than all of them.

3:39am UK, Thursday 18 September 2014

Video: Alibaba Founder Shows US Doubters

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• Duncan Clark, chairman of investment firm BDA China, says Alibaba's founder Jack Ma drove himself to be successful in China.

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• Video: Alibaba Founder Shows US Doubters

• Video: Jack Ma - The Man Behind Alibaba

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Inflation Slips But House Price Growth Surges

Official figures have charted an easing in the annual rate of inflation but house price growth accelerating to a seven-year high - with six UK regions achieving new price peaks.

Separate releases by the Office for National Statistics (ONS) showed CPI inflation at 1.5% - falling back from 1.6% the previous month - with the biggest contributions coming from the supermarket price war and falling petrol costs.

This means that while wage growth remains much weaker that the rate of inflation - maintaining the squeeze on earnings - the gap was slightly reduced.

London house price growth slowed in July

However, the ONS statistics on house prices showed that purchasers would need to dig deeper for a deposit.

The average cost of a home rose 11.7% to a new record high of £272,000 in the year to July, though annual growth in London slipped slightly to a rate of 19.1% from 19.3% the previous month.

The study - by nation - showed prices rose 12% in England, 7.4% in Wales, 7.6% in Scotland and 4.5% in Northern Ireland.

It also measured property prices reaching fresh all-time highs in six UK regions.

The East Midlands, West Midlands and South West joined London, the East and the South East in having price levels higher than their pre-financial crisis peaks of 2007/08, the ONS said.

The recovery in building has been too slow to help temper price growth

Estate agents have reported seeing signs of disruption to the housing market in Scotland in recent weeks, with potential buyers putting their plans on hold while they wait to see what the outcome of the referendum on independence will be.

The report also showed that first-time buyers face having to pay 13.5% more to get on the property ladder than they did a year ago - and the ONS said this was the highest annual increase recorded for the sector since March 2005.

The average price paid by a first-time buyer in July this year was £209,000.

The Bank of England, which is mulling the timing of the UK's first interest rate rise since March 2009, is likely to see the inflation and house prices figures as further evidence of little immediate pressure for action.

Bank governor Mark Carney has cited concerns on consumer debt and wage growth.

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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.

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Retailer Phones 4u 'Forced Into Administration'

Phones 4u stores are closed with thousands of jobs at risk after the retailer said it was being forced into administration by network operator EE's decision to join Vodafone in cutting ties with the firm.

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

Inquiry lines were still operational though the Phones 4u customer service line referred callers to the website, which has been taken offline.

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.

Potential store customers were greeted by closed doors and a short notice

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

However, workers facing the threat of redundancy have been given hope by rival firm Dixons Carphone - Sky News has learnt that the business is preparing to highlight at least 1,500 vacancies at Carphone Warehouse stores for which Phones 4u staff would be eligible.

Phones 4u executive David Kassler said: "Today is a very sad day for our customers and our staff.

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

"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."

Staff were asked to report to work as normal on Monday for a management briefing.

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

Customers were also told that orders which were not dispatched in advance of the decision will not be honoured, though full refunds will be given.

The formal process of appointing PwC as the administrator was expected to take place later on Monday.

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

The announcement helped shares in Dixons Carphone rise 4% in early trading.

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 its decision not to extend its contract with Phones 4u was part of a focus on supplying customers directly and questions surrounding the "long-term viability" of the Phones 4u business. 

Vodafone said it was "saddened" to read about Phones 4u's plight and added: "We strongly reject any suggestion that we behaved inappropriately at any stage during our negotiations with Phones 4u."

It has been revealed that Vodafone was in talks about a joint takeover of Phones 4U as recently as two months ago but abandoned the proposed deal without explanation.

Sky News has learnt that Vodafone executives discussed at a meeting in June with financial and legal advisers to Phones4U a takeover of the chain by the mobile phone network along with EE, its rival.

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Vodafone 'Plotted Joint Takeover Of Phones 4u'

By Mark Kleinman, City Editor

Vodafone was in talks about a joint takeover of Phones 4u as recently as two months ago but abandoned the proposed deal without explanation.

Sky News has learnt that Vodafone executives discussed at a meeting in June with financial and legal advisers to Phones 4u a takeover of the chain by the mobile phone network along with EE, its rival.

The deal would have been structured as a 50:50 acquisition of Phones 4u, with Vodafone encouraging the retailer's legal team to "review how this could be achieved given the competition constraints", according to a person close to the talks.

A subsequent discussion between Vodafone and Phones 4u indicated that Vodafone might pursue a takeover on its own if EE did not wish to participate, the person added.

On July 8, while parallel discussions were taking place about extending Vodafone's distribution contract with Phones 4u, the mobile network's UK executives made a presentation to group colleagues entitled "Phones 4u - Partner of Choice".

Several weeks later, Vodafone notified Phones 4u that it would not be renewing their agreement, while no further talks about a takeover of the company were held.

The revelations shed new light on the final months of Phones 4u's existence as a standalone company, with its future now under threat following decisions by Vodafone and EE to terminate distribution agreements next year.

A Vodafone spokesman acknowledged that the takeover discussions had taken place but said: "For regulatory and commercial reasons the acquisition of Phones 4u was not an option.

"The UK management team took legal advice in the early summer to review its potential but it was quickly dismissed given the advice we received. 

"We have made our position on the commercial negotiations with Phones 4u very clear and have nothing more to add.

"The decision to terminate our contract with them was made independently by the UK management team on purely commercial reasons following extensive negotiations."

The news puts in jeopardy as many as 5,500 jobs at Phones 4u, although as Sky News revealed earlier on Monday, its larger rival Dixons Carphone is drawing up plans that could see many hundreds of those staff retain their roles or fill other vacancies at the UK's biggest mobile phone retailer.

Dixons Carphone has tweeted support for Phones 4u workers

Phones 4u's crisis sparked an unusually hostile bout of corporate mud-slinging, with John Caudwell, the retailer's founder, accusing Vodafone of being a "ruthless partner".

Currys and PC World shops currently employ just over 800 Phones 4u staff, with Dixons Carphone keen to offer all of them jobs at the rebranded Carphone Warehouse concessions.

The timing of a more detailed statement by Dixons Carphone will depend upon the progress of discussions between it and PricewaterhouseCoopers, which was designated by Phones 4u directors as the company's administrator on Sunday.

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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.

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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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