Tycoons To Argue Case For Scottish Tax Revamp

By Mark Kleinman, City Editor

Scotland could become one of the world's five leading advanced economies if it adopts tax reforms designed to promote long-term investment, a group of economists and businesspeople will argue this week.

Sky News understands that N-56 will set out on Wednesday its argument for a series of measures that should be implemented regardless of the outcome of September's independence referendum.

Established by Dan Macdonald, the chief executive of property developer Macdonald Estates, N-56 is a new pro-business organisation which has consulted prominent researchers including Capital Economics about the viability of its proposals.

In a report called Scotland Means Business, the new group will call for the removal of tax disadvantages for equity versus debt financing in an attempt to promote long-term investment.

"(This would make) Scotland an attractive location for equity providers and other financial institutions; suppor the equity model of long term business finance, so providing long term patient finance; help to address the impact in pension funds of the removal of advance corporation tax in the UK; and encourage increased equity investment in growing Scottish businesses," according to a source with knowledge of the report.

Such a system could be structured through a 'dividend imputation system' such as that used in New Zealand which avoids the double taxation of dividend income.

N-56, which is named after Scotland's latitudinal position, is understood to be keen to remain distant from the politics of the intensifying independence debate.

One source said that the brother of Sir Nicholas Macpherson, the permanent secretary to the Treasury, was among those consulted about the new group's proposals.

Sir Nicholas was at the centre of a political row in April about a letter he wrote to rebuff Nationalists' claim that an independent Scotland would continue to use the pound.

He denied the SNP's suggestion that the Chancellor, George Osborne, had put pressure on him to argue against a continued currency union in the event of a 'Yes' vote.

"I would advise you against entering into a currency union with an independent Scotland. There is no evidence that adequate proposals or policy changes to enable the formation of a currency union could be devised, agreed and implemented by both governments in the foreseeable future," Sir Nicholas wrote in his letter.

N-56 will say in its report that it has examined the policy-making approach of successful economies including Denmark, Norway, Singapore and Switzerland.

A full list of founder supporters is likely to be published this week, which marks the milestone of 100 days until September's vote.

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Time Warner In Talks About $2.2bn Vice Deal

By Mark Kleinman, City Editor

Vice Media, the digital group which has mounted an aggressive assault on traditional news providers, is in talks to sell a major stake in itself to Time Warner.

Sky News has learnt that the two companies have been holding detailed negotiations about a deal.

One potential structure under discussion would see Time Warner injecting HLN, a news platform owned by its Cable operations, into Vice in return for roughly half the enlarged company.

A deal is expected to value Vice at roughly $2.2bn, about 50% more than last year's sale of a stake in the mini-conglomerate.

Sources said on Monday that talks between Time Warner and Vice were at an advanced stage but that some final details had yet to be agreed.

A deal could still fall apart, however, or assume a radically different structure, they added.

Founded in 1994 as a "punk zine" for music enthusiasts in Montreal, Vice has attracted huge attention from the global media industry with its provocative mix of content and rapid diversification: it now houses an advertising agency, a record label and a television show.

The company has built a significant presence in Shoreditch in London, one of 35 offices it now has around the world.

Among the "news events" for which it has become known was a TV show in which Vice's crew took the US basketball star Dennis Rodman to North Korea.

Shane Smith, the company's Canadian co-founder and chief executive, has repeatedly referred to Vice as "the Time Warner of the street" but has denied any intention of surrendering outright control of the group.

Vice operates some of Youtube's most popular channels and has content partnerships with a broad range of digital media providers, including Facebook and Twitter.

Its digital channels now include The Creators' Project, Motherboard and Noisey, a music discovery platform.

"I want us to be the next MTV, ESPN and CNN rolled into one - and everyone always rolls their eyes," Mr Smith told a newspaper last year.

"The reality is that MTV was bought by Viacom and CNN went to Time Warner. We have set ourselves up to build a global platform but we have maintained control."

Vice's management, led by Mr Smith, are expected to retain operational control of the business as part of a deal with Time Warner.

It was unclear on Monday how Vice's existing minority shareholders, which include WPP, the FTSE-100 marketing services group, would respond to a transaction.

Vice's other investors also include 21st Century Fox, which acquired a 5% stake last year in a deal valuing the company at $1.4bn, and Raine, a New York-based merchant bank.

The increase in Vice's purported value since then underlines the extent to which major media groups are keen to forge an alliance with the company.

The original Vice magazine now accounts for less than 5% of the company's revenues, which reached $175m in 2012, with video content dominating its business model.

A deal with Time Warner would provide Vice with the ability to expand its international operations more quickly.

Mr Smith has signalled his desire for Vice to make a significant impact in fast-growing markets such as China, India and South Korea, where multinational consumer brands are keen to align themselves with youth-focused content platforms.

Time Warner and Vice both declined to comment on their talks.

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F1 Investor Weighs Bid For Auctioneer Bonhams

By Mark Kleinman, City Editor

The biggest shareholder in Formula One (F1) motor racing is turning its attention to classic cars with a bid to take control of Bonhams, one of the world's largest auction houses.

Sky News understands that CVC Capital Partners was among a group of private equity firms which tabled preliminary offers for the company ahead of a deadline last week.

Bonhams, which has become a well-known name in the global auctioneering sector, specialises in selling fine art, classic cars and antiques.

The company was founded in 1793, and now claims market leadership in a number of areas, including the sale of Alfa Romeo, Aston Martin and Maserati cars for world record prices.

It is unclear exactly how much Bonhams is valued at although City sources indicated that it would be several hundred million pounds.

Bonhams is a relatively small business for CVC to contemplate an offer for, but if it is successful, it would extend the buyout firm's connection to the world's premier motorsport.

Key sales in 2013 included a 1954 Mercedes F1 car driven by the legendary Argentine racer Juan Manuel Fangio, which fetched £19.6m, and the Madonna Laboris, which became the most expensive Russian painting sold at auction when it attracted a £7.9m bid.

Last year, Bonhams saw profits more than double to £25m as wealthy buyers looked for alternative investment opportunities in a continuing environment of low interest rates.

It is jointly-owned by two businessmen: Robert Brooks, a former motor racing driver who has chaired the British Racing Drivers' Club, and Evert Louwman, a Dutchman.

Mr Brooks has said in the past that he wants to take advantage of Bonhams' strong balance sheet by building the company into a credible rival to Christie's and Sotheby's, the most famous name in the auction world.

It is unclear whether either of the existing shareholders would countenance an outright sale of their stakes.

Greenhill, an investment bank, was drafted in in March to recruit a new investor, with Bain Capital and Bridgepoint among the other private equity groups examining bids.

Headquartered on New Bond Street in London, the current Bonhams was formed from a merger with Brooks in 2000, and has established a presence in Dubai, Hong Kong and the US.

"2013 was a year where we saw the Bonhams brand establish itself further on the global stage," Mr Brooks said earlier this year.

"We have put significant investment behind growing a brand that can compete effectively in the key auction markets of the world."

A CVC spokesman declined to comment.

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Scots Independence: Business Pros And Cons

Scots Independence: BAE Systems Boss' Fears

Updated: 1:50pm UK, Wednesday 04 June 2014

The boss of Britain's biggest defence company has become the latest business leader to warn against Scottish independence.

BAE Systems chief executive Ian King said that a "yes" vote would damage the "certainty and stability" necessary for investment.

Mr King's comments were made on a company blog, as the official campaign over independence was launched.

The defence giant currently employs 3,600 people in Scotland.

He said the company was pinning its hopes on an official decision for naval procurement, as it overhauls shipbuilding operations in Glasgow.

Mr King said the company was "investing in facilities for the future" in Scotland "based on an expectation that the Government will make their major production decision for the next generation Type 26 frigate by the end of this year".

He said: "If Scotland became independent, we would no longer have that certainty and stability.

"We would then have to talk to our major UK customer, the Ministry of Defence, and jointly work out a plan for the future."

Supporters of the "yes" vote in the forthcoming referendum insist Scotland will be better off as an independent state within the EU.

First Minister Alex Salmond said independence will make Scottish homes £2,000 richer, while the Treasury says Scots will be £1,400 richer if they stay in the union.

But Mr King also voiced concerns about staff pensions post-independence.

He said: "If Scotland became independent and subsequently joined the European Union, our pension schemes, along with many other UK company schemes, may be caught up in EU regulations relating to cross-border pensions.

"The reality today is we can't say how our pension schemes would be affected.

"There would be a number of possible outcomes and we would use our consultation processes to discuss the options."

His comments come amid a growing business chorus questioning Scottish independence.

On Friday Kingfisher chief executive Sir Ian Cheshire, the boss of B&Q's parent firm, said there were too many uncertainties around tax, currency and Scottish EU membership.

Last month, the British Chambers of Commerce, which itself remains impartial in the debate, surveyed close to 2,500 of its members, and whilst 11% said Scotland should vote yes, some 85% preferred the union to remain.

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Oil Giant Shell Kicks Off Hunt For New Chair

By Mark Kleinman, City Editor

Royal Dutch Shell, the biggest company on London's stock market, has kicked off the hunt for a new chairman.

Sky News has learnt that the oil giant has asked Egon Zehnder International, the executive search firm, to identify a successor to Jorma Ollila, who is expected to step down next year.

Mr Ollila will have served as Shell's chairman for nine years by next year's annual meeting, marking a natural departure point for the Finnish former Nokia boss.

It was unclear this weekend whether a successor could be drawn from Shell's existing ranks of non-executive directors, who include Guy Elliott, the former finance director of Rio Tinto; Sir Nigel Sheinwald, a former British ambassador to the US; and Linda Stuntz, a top American lawyer.

Some leading investors in Shell are likely to be keen for the company to appoint an outsider as its new chairman as the oil group continues to refine its strategy under its recently-appointed chief executive.

Ben van Beurden took over at the helm of Shell at the beginning of the year, having previously run its downstream operations.

Mr van Beurden was a surprise appointment to replace Peter Voser, another veteran Shell executive who was well-regarded in the City but who quit to spend more time with his family.

The process of finding Mr Ollila's successor is not thought to be especially well-advanced although an announcement about an appointment is likely to be made this year.

The leadership transition will represent another important moment for Shell, with Mr Ollila having taken over as chairman in 2006 in the wake of a scandal which involved the company dramatically overstating its reserves.

With a market capitalisation of more than £153bn, Shell's value outstrips that of every other British company, beating HSBC into second place. It is more than 50% larger than BP, its rival energy group.

Shell attracted some disquiet over its executive pay policies at its annual meeting last month, although it averted the scale of revolt witnessed at a large number of public companies in recent weeks.

The oil giant has also faced searching questions about its strategy since Mr van Beurden took over, after being forced into a profit warning in January which it blamed on weaker refining margins and higher exploration costs.

Like BP, it is engaged in a process of offloading non-core assets, which is expected to generate tens of billions of pounds in proceeds in the coming years.

A number of US shale assets are among those that Shell is likely to divest.

Shares in Shell have risen roughly 12% during the last year, a performance which has trailed that of the FTSE-100.

In his AGM speech, Mr Ollila acknowledged concerns about the company's progress.

"Our cashflow growth has been competitive in the last few years, and our cash flow, $40bn in 2013, was strong in our peer group.

"However, that's not the whole picture, since we have also had weak financial performance from some of our more mature businesses, from Downstream and North America upstream.

"The remuneration policies in the company reflect this performance, with total compensation for the executives reduced by some 50% from 2012 levels, including the use of downwards discretion on bonuses by the remuneration committee."

A Shell spokesman declined to comment on the search for Mr Ollila's successor.

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Minimum Wage Dodgers 'Named And Shamed'

Twenty-five employers who failed to pay their staff the national minimum wage have been "named and shamed" by the Government.

It is the biggest number of employers publicly named since a new crackdown was announced last year.

Between them, they owe workers more than £43,000 in arrears, and face fines of over £21,000.

The minimum wage is currently set at £6.31 an hour.

Business Minister Jenny Willott said: "Paying less than the minimum wage is not only wrong, it's illegal. If employers break the law they need to know that they will face tough consequences.

"Any worker who is entitled to the minimum wage should receive it. If anyone suspects they are not being paid the wage they are legally entitled to they should call the Pay and Work Rights helpline on 0800 917 2368."

The Government also plans to increase fines, so that an employer underpaying 10 workers could face fines of up to £200,000.

TUC general secretary Frances O'Grady said: "Under-paying your lowest paid staff is immoral and illegal. Employers caught in the act deserve to be fined and have their reputation ruined.

"This should send a clear message that dodging the minimum wage does not pay. All minimum wage cheats should be named and shamed, and HMRC need greater resources to catch even more crooks."

The 25 employers are as follows:

:: Christine Cadden and Nicola Banks of Renaissance, Wirral, neglected to pay £7,310.65 to three workers.

:: Alan King and John King of Arthur Simpson & Co, Bradford, neglected to pay £6,426.12 to a worker.

:: Central Heating Services Ltd, Hampshire, neglected to pay £6,200.28 to four workers.

:: Cargilfield School Ltd, Edinburgh, neglected to pay £3,739.58 to a worker.

:: A2ZEE Construction Ltd, Cramlington, neglected to pay £3,375.51 to 14 workers.

:: Mr and Mrs Balasco of Eugenio, Bristol, neglected to pay £3,037.53 to two workers.

:: Mr and Mrs Hampton of The Wheatsheaf Inn, Cheshire, neglected to pay £2,057.88 to five workers.

:: Steven Stainton of Steven Stainton Joinery, Cumbria, neglected to pay £1,415.82 to a worker.

:: Runbaro Ltd, Swindon, neglected to pay £1,413.88 to a worker.

:: Satwinder Singh Khatter and Tejinder Singh Khatter of The Bath Hotel, Reading, neglected to pay £1,237.79 to two workers.

:: Richard Last of Classic Carpentry, Godalming, neglected to pay £1,236.72 to a worker.

:: We are Mop! Ltd, London, neglected to pay £1,018.05 to two workers. 

:: Mrs Sue English of Legends Hairdressers, Colchester, neglected to pay £823.40 to a worker. 

:: Saftdwin Ltd, Hampshire, neglected to pay £806.37 to two workers.

:: Master Distribution Ltd, Essex, neglected to pay £718.62 to a worker.

:: Perth Hotels Ltd, Perth, neglected to pay £556.80 to a worker.

:: Bryants Nurseries Ltd, Hertfordshire, neglected to pay £494.07 to a worker.

:: Dove Mill Retail Outlet Ltd, Bolton, neglected to pay £461.84 to a worker.

:: Luigi's Little Italy Ltd, Yorkshire, neglected to pay £281.04 to five workers.

:: CPS SW Ltd, Exmouth, neglected to pay £261.29 to a worker.

:: Mr Gary Calder, Mr Richard Calder and Mr Neil Calder of Avenue Agricultural, Northamptonshire, neglected to pay £256.55 to a worker.

:: Dakal Ltd, Northampton, neglected to pay £252.00 to two workers.

:: Zoom Ltd, Havant, neglected to pay £242.28 to three workers.

:: HSS Hire Service Group Ltd, Manchester, neglected to pay £149.00 to 15 workers.

:: Sun Shack Ltd, Hamilton, neglected to pay £134.35 to eight workers.

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IMF Sees Housing Market Threat To Recovery

Osborne Should Heed IMF House Market Warning

Updated: 11:57am UK, Friday 06 June 2014

By Ed Conway, Economics Editor

What would you like first: the good news or the bad?

Well, if you're George Osborne, the good news is that the long battle with the International Monetary Fund - the one that began last year when chief economist Olivier Blanchard told Sky News the Chancellor was "playing with fire" on economic policy - is over.

We knew as much in Washington earlier this spring, when Blanchard acknowledged that the Fund's forecasts for Britain had been overly pessimistic.

But today the saga has come to its end, with the Fund also giving the Chancellor's fiscal plans (those precise plans Blanchard had criticised) a ringing endorsement.

"The planned fiscal adjustment this year is appropriate," the IMF says in its annual survey of the UK economy - the so-called Article IV report.

This is a shift from last year, when the Article IV recommended that the Chancellor bring forward spending plans to try to boost the economy. So cause for celebration at the Treasury?

Not altogether, for there is also some bad news. The criticisms of the Treasury's tax-and-spend plans may have dissolved away, but they have been replaced with concerns of another variety: about the housing market.

Such concerns are hardly new: the European Commission already recommended earlier this week that the Government take action to prevent a housing bubble.

However, the Fund is a touch more authoritative - and more specific. Its suggestions are as follows: The Bank of England should leave interest rates on hold for the time being; it should impose limits on how much mortgage companies can lend homebuyers in relation to their incomes; it should also consider outright caps on loan-to-income levels and loan-to-value ratios.

On top of this, the Government should "consider whether [Help to Buy] should be modified or even remains necessary for the full three years of the policy. And as the volume of high-LTV transactions rises, the FPC will need to evaluate if the program is contributing to financial risks."

Like the Commission (and, well, every economist out there), it suggests that Britain needs to build more homes. However, there are no silver bullets in this enterprise, and it acknowledges that all of the above "can only be temporary palliatives to an underlying problem."

The best it can suggest is that the Government reconsider "unnecessary constraints on brownfield and greenfield developments; tax policies that discourage the most economically-efficient use of property; and underdeveloped rental markets with relatively short lease terms."

Some might see the final point as a note of support for the rental reforms recently suggested by Ed Miliband. The problem for politicians of every stripe is that the housing market's structural problems are no secret: but mending them will take many years.

Reforms to the planning system have been desperately needed for decades, but only now are they being implemented; changes to green belt regulations are an economist's dream but a local politician's nightmare – so are unlikely to be implemented before the election, if at all.

However, it is clear that the Chancellor would be foolhardy to ignore the tone of the IMF's report. For there is a growing risk of a housing bubble, and with it the political risk that George Osborne could be remembered not as the austerity Chancellor who got it right, but the man who generated yet another housing market bust.

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White Van Woman 'Held Back By Sexism'

By Clare Fallon, Sky News Reporter

Campaigners are calling for more help to encourage women to enter traditionally male professions, including plumbing, building and plastering.

Despite headlines about the rise of the so-called white van woman and claims a record number of females are working in the trades, industry experts say the proportion is still worryingly low. 

According to Women and Manual Trades, a national organisation which offers support to women, only around 1% of people in skilled trade occupations are female. 

Campaigners say part of the problem is sexist abuse still suffered by some women working in male-dominated professions. 

Hattie Hasan set up Stopcocks, an all-woman plumbing company, after working in the profession for more than two decades. 

She says sexist attitudes are still a problem.

"Unfortunately even after my own 25 years in plumbing things haven't changed much ... girls are still not encouraged to get into the trades.

"Firstly they're not encouraged at school. When I was at school, I just wanted the boys to fancy me, I didn't want to be a plumber and I think that's the pressure for most girls.

Hattie Hassan, who set up her own plumbing firm, calls for more role models

"The second thing is that there are not enough role models. The more female plumbers there are the more there will be because the more people see us the more they'll realise it is a possibility for them.

"There are a lot of things that people say women can't do such as carrying heavy things but health and safety rules mean even if you're a bloke you still can't carry over a certain amount of weight.

"Also I think people seem to forget that women carry babies ... and women do that on a regular basis so I don't think there are barriers where heavy things are concerned."

She added: "The barriers for women are that once women have trained where do they go? The opportunities for getting employment in plumbing is not as widespread as it used to be. It's difficult for lads coming out, but it's even more difficult for girls.

"So really the only route for them is self-employment."

However, there are signs things may improve in the future.

Training centres where construction skills are taught report an increase in the number of women enrolling. 

At Access Training in South Wales women account for one in 10 of those signing up for courses including plastering, plumbing and electrics.

Mary Henderson swapped her admin job for plumbing

Mary Henderson quit her office job to retrain as a plumber, saying she was fed up being patronised by workmen she had hired. 

"I feel like it's a useful thing to have a trade in this competitive, career-driven industry - it just made sense.

"I used to work in admin, from when I left school, and basically I had a lot of trouble with my own bathroom ... I wanted to do something more practical so plumbing just seemed to pop out at me."

She believes there should be more encouragement for women to get into the trades.

"I don't think practical things are pushed at children leaving education  It's not gender specific, it's just something that boys tend to fall into whereas girls are pushed into the first job that comes and then it just rolls into admin.

"I think there should be more focus on school leavers. I think it's a really good thing to have a trade and it should be suggested to students because exams are forced on them and teachers can't afford to have an interest in what they do after that.

Although she is in a minority, Ms Henderson says she is content being a woman in a man's world.

"There is slight banter and it's a little less PC than what you find in an office, but to be honest I find that refreshing rather than threatening."

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ECB Acts To Halt Euro Deflation Threat

The European Central Bank (ECB) has announced a series of measures to help boost economic growth in the euro area and prevent a spiral into crippling deflation.

The bank's governing council's first monetary policy announcement was a lowering of the benchmark interest rate to a new record low.

The refinancing rate - which is effectively the ECB's base rate of interest used to calculate borrowing rates - was cut from 0.25% to 0.15%.

But of greater interest was confirmation the ECB was to charge banks to deposit cash with it for the first time - aimed at stoking bank lending - with the deposit rate hitting -0.1%.

ECB president Mario Draghi later told a news conference the rates would remain at that level for an extended period of time.

Other measures included an offer for banks to access a targeted long-term refinancing operation (LTRO) to persuade them to lend.

The initial size of the LTRO was put at €400bn (£3.23bn) and the ECB was also preparing to purchase asset-backed securities.

Mr Draghi said: "In order to strengthen the economic recovery, banks and policymakers in the euro area must step up their efforts.

"Against the background of weak credit growth, the ongoing comprehensive assessment of banks' balance sheets is of key importance.

"Banks should take full advantage of this (LTRO) exercise to improve their capital and solvency position, thereby contributing to overcome any existing credit supply restriction that could hamper the recovery.

"At the same time, policy-makers in the euro area should push ahead in the areas of fiscal policies and structural reforms."

Mr Draghi confirmed a downgrade in GDP expectations for the 18-nation eurozone for 2014, with economic growth now forecast at just 1%.

Economists say the biggest threats to recovery in the debt-laden euro area come from banks failing to lend and costs falling.

Tackling the spectre of deflation - or falling prices - is part of the ECB's key mandate.

Deflation is seen as such a threat because it has been proved to stop people or firms from making spending decisions because of the hope prices will be cheaper at a later date - a spiral which has persistently dogged Japan.

There was a positive reaction to the developments on world markets (see the latest moves here), with stocks rising across Europe.

The German DAX hit 10,000 points for the first time at one stage while on the bond markets, government borrowing costs remained largely stable.

The euro - widely seen as overvalued given the nature of Europe's economic problems - fell to a four-month low against the dollar and its lowest level against the pound since December 2012.

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AA Races Towards £4bn Stock Market Listing

By Mark Kleinman, City Editor

The AA, Britain's biggest roadside recovery group, is poised to press ahead with a £4bn flotation despite a disappointing stock market debut from Saga, its sister company.

Sky News can reveal that Acromas Holdings, the AA's parent, could announce plans for the listing through a process known as an accelerated initial public offering as soon as Friday.

The deal will involve approximately 10 City institutions acting as cornerstone investors, each of which will agree to acquire a substantial number of shares in the AA.

The fund managers expected to back the flotation, which will value the AA's equity at roughly £1.3bn, include Aviva Investors, Blackrock, JP Morgan Asset Management, Lansdowne Partners and Legal & General Investment Management.

A source said on Thursday that details of the share sale were still being finalised and that there was a chance that the deal could still be aborted.

Bob MacKenzie, a former boss of Green Flag, the car insurance provider, has been lined up to act as the company's new chairman, they added.

Deutsche Bank has been brought in to advise the company, while Cenkos Securities is acting as broker overseeing the recruitment of the major investors.

Acromas is a private equity-backed group which continues to own a majority stake in Saga, the financial services and travel specialist for the over 50s.

Shares in Saga closed up 1.6% on Thursday but have disappointed since listing last month.

Some institutions approached by Cenkos about participating in the AA deal were deterred by the motor insurer's £3bn debt mountain, which they believed was inappropriately high for a public company.

The AA, which generates hundreds of millions of pounds of free cashflow every year, is expected to outline a plan for reducing its borrowings as part of of its listing prospectus.

If the listing goes ahead, the AA could make its own public debut by the end of June, completing a change of ownership for one of the UK's biggest membership organisations.

Acromas has been expected to retain ownership of the AA for some time, given the scale of its borrowings relative to its earnings.

In the third quarter of last year, the AA reported sales of £244m, with earnings up 8.2% to £104m.

It has taken advantage of strong financing markets by launching a £350m bond, the proceeds of which are being used to repay a chunk of Acromas's vast debt-pile.

The AA, which has styled itself as "the fourth emergency service", has four million personal members and nine million business customers, giving it a 40% share of the roadside insurance market.

The accelerated IPO technique was first used in the City more than a decade ago by Collins Stewart, the investment bank which a group of Cenkos executives left to set up.

Like Saga, the AA has turned to new leadership, appointing Chris Jansen, a former British Gas executive, as its new boss.

Acromas is owned by Charterhouse, CVC Capital and Permira, three of the UK's biggest private equity groups. They acquired the AA from Centrica, the owner of British Gas nearly a decade ago, before putting it under the same corporate ownership as Saga.

The AA's principal rival, the RAC, is also racing towards the stock market, with Carlyle, its private equity owner, working on plans for a listing.

An Acromas spokesman declined to comment.

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