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IWG, the serviced offices giant behind Regus and Spaces, is exploring a multibillion pound break-up that would involve splitting it into several distinct companies.

Sky News has learnt that Mark Dixon, IWG’s founder and chief executive, is in the early stages of examining a series of corporate actions that he believes would crystallise significant value for the company’s shareholders.

Insiders said on Sunday that Mr Dixon was examining options including a US listing for Worka, an app that helps IWG clients to compare and book places to work in more than 3000 locations around the world.

That listing could be achieved through a flotation or merger with a special purpose acquisition company (SPAC), they added.

Under the plans being explored, a break-up of IWG could also entail separating its owned-property arm from its global franchising operation, although a source close to the company insisted that a suggestion that Mr Dixon would take the property company private himself was inaccurate.

At Friday’s closing share price of 286.7p, IWG had a market capitalisation of £2.9bn, although Mr Dixon is said to believe the true value of the company’s assets is double that sum, making a break-up worthy of consideration.

Bankers have yet to be formally hired to work on the ideas, although Barclays and HSBC, IWG’s corporate brokers, are understood to be involved, as is Rothschild, which has been discussing the US listing with Mr Dixon, according to banking sources.

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Another insider said that although the plans were under discussion, there was little prospect of an imminent formal announcement.

It is the latest in a series of plots explored by IWG’s founder in recent years which have included an outright sale of the group on several occasions.

Earlier this year, IWG held tentative talks with CC Capital, a New York-based private equity firm, about a sale of part or all of the company.

The latest spate of potential corporate activity at IWG, which counts WeWork as an increasingly important rival, comes amid uncertainty over post-pandemic demand for long-term and temporary office space.

Many companies are announcing permanent shifts to hybrid working, with employees allowed to base themselves at home or other non-office locations for at least part of the time.

In June, IWG warned the City that underlying earnings this year would be well below their 2020 level, and said the “overall improvement in occupancy across the whole group has been lower than previously anticipated as a result of the prolonged impact of COVID-19”.

It said, however, that it expected a strong recovery in its performance next year.

In recent years, IWG has adopted a franchise model which has seen it sell assets in countries including Japan and license its brands to new operators.

Mr Dixon, who is IWG’s single-largest shareholder, is no stranger to conversations with private equity bidders.

In 2019, he held talks with Lone Star Funds, Starwood Capital, TDR Capital and Terra Firma Capital Partners but abandoned the negotiations after they failed to produce an offer that could be recommended to shareholders.

Earlier that year, IWG rejected a takeover bid from Brookfield Asset Management and Onex which valued the company at 280p-a-share.

IWG’s rival, WeWork, is preparing to become a publicly traded company in New York after agreeing a deal in March to merge with another SPAC.

The combination is expected to value WeWork at approximately $9bn – a fraction of what it was worth prior to its near-collapse in 2019.

IWG declined to comment on Sunday.

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M&S tells agency workers to stay at home after cyberattack

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M&S tells agency workers to stay at home after cyberattack

Marks & Spencer (M&S) has ordered hundreds of agency workers at its main distribution centre to stay at home as it grapples with the unfolding impact of a cyberattack on Britain’s best-known retailer.

Sky News has learnt that roughly 200 people who had been due to undertake shift work at M&S’s vast Castle Donington clothing and homewares logistics centre in the East Midlands have been told not to come in amid the escalating crisis.

Agency staff make up about 20% of Castle Donington’s workforce, according to a source close to M&S.

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The retailer’s own employees who work at the site have been told to come in as usual, the source added.

“There is work for them to do,” they said.

M&S disclosed last week that it was suspending online orders as a result of the cyberattack, but has provided few other details about the nature and extent of the incident.

In its latest update to investors, the company said on Friday that its product range was “available to browse online, and our stores remain open and ready to welcome and serve customers”.

“We continue to manage the incident proactively and the M&S team – supported by leading experts – is working extremely hard to restore online operations and continue to serve customers well,” it added.

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It was unclear on Monday how long the disruption to M&S’s e-commerce operations would last, although retail executives said the cyberattack was “extensive” and that it could take the company some time to fully resolve its impact.

Shares in M&S slid a further 2.4% on Monday morning, following a sharp fall last week, as investors reacted to the absence of positive news about the incident.

M&S declined to comment further.

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Deliveroo shares surge 17% as £2.7bn takeover looms

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Deliveroo shares surge 17% as £2.7bn takeover looms

Shares in meal delivery platform Deliveroo have surged by 17% as investors react to news of a £2.7bn takeover proposal.

The company revealed after the market had closed on Friday that it had been in talks since 5 April with US rival DoorDash.

Deliveroo suggested then it was likely the 180p per share offer would be recommended, though full terms were yet to be agreed.

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At that price, the company’s founder and chief executive, Will Shu, would be in line for a windfall of more than £170m.

Deliveroo further announced, before trading on Monday, that it had suspended its £100m share buyback programme.

The opening share price reaction took the value to 171p per share – still shy of the 180p on the table – and well under the 390p per share flotation price seen in 2021.

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Deliveroo’s shares have weakened nearly 50% since their market debut.

The deal is not expected to face regulatory hurdles as it provides DoorDash access to 10 new markets where it currently has no presence.

But a takeover would likely represent a blow to the City of London given the anticipated loss of a tech-focused player.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “If the deal is done at that price, the company will fail to shake off the ‘Floperoo’ tag it was saddled with after its disastrous IPO debut in 2021.

“Even though Deliveroo has finally broken through into profitable territory, the prolonged bout of indigestion around its share price has continued.

“The surge in demand for home deliveries during the pandemic waned just as competition heated up. Deliveroo’s foray into grocery deliveries has helped it turn a profit but it’s still facing fierce rivals.”

She added: “The DoorDash Deliveroo deal will be unappetising for the government which has been trying to boost the number of tech companies listed in London.

“If Deliveroo is purchased it would join a stream of companies leaving the London Stock Exchange, with too few IPOs [initial public offerings] in the pipeline to make up the numbers.”

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US trade deal ‘possible’ but not ‘certain’, says senior minister

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US trade deal 'possible' but not 'certain', says senior minister

A trade deal with the US is “possible” but not “certain”, a senior minister has said as he struck a cautious tone about negotiations with the White House.

Pat McFadden, the Chancellor of the Duchy of Lancaster, told Sunday Morning with Trevor Phillips there was “a serious level of engagement going on at high levels” to secure a UK-US trade deal.

However, Mr McFadden, a key ally of Sir Keir Starmer, struck a more cautious tone than Chancellor Rachel Reeves on the prospect of a US trade deal, saying: “I think an agreement is possible – I don’t think it’s certain, and I don’t want to say it’s certain, but I think it’s possible.”

He went on to say the government wanted an “agreement in the UK’s interests” and not a “hasty deal”, amid fears from critics that Number 10 could acquiesce a deal that lowers food standards, for example, or changes certain taxes in a bid to persuade Donald Trump to lower some of the tariffs that have been placed on British goods.

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And asked about the timing of the deal – following recent reports an agreement was imminent – Mr McFadden said: “We’ll keep working with the United States and keep trying to get to an agreement in the coming weeks.”

As well as talks with the US, the UK has also ramped up its efforts with the EU, with suggestions it could include a new EU youth mobility scheme that would allow under-30s from the bloc to live, work and study in the UK and vice versa.

Mr McFadden said he believed the government could “improve upon” the Brexit deal struck by Boris Johnson, saying it had caused “an awful lot of bureaucracy and costs here in the UK”.

He said “first and foremost” on the government’s agenda was securing a food and agriculture and a veterinary agreement, saying it was “such an important area for the UK and an area where we’ve had so much extra cost and bureaucracy because of Brexit”.

He added: “But again, as with the United States, there’s no point in calling the game before it’s done. We’ve still got work to do, and we’re doing that work with our partners in the EU.”

The Cabinet Office minister also rejected suggestions the UK would have to choose between pursuing a trade deal with the US and one with the EU – the latter of which has banned chlorinated chicken in its markets – as has the UK – but which the US has historically wanted.

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On the issue of chlorinated chicken, Mr McFadden said the government had “made clear we will not water down animal welfare standards with either party”.

“But I don’t agree that it’s some fundamental choice beyond where we have to pick one trading partner rather than another. I think that’s to misunderstand the nature of the UK economy, and I don’t think would be in our interests to put all our eggs in one basket.”

Also speaking to Trevor Phillips was Tory leader Kemi Badenoch, who said the government should be close to closing the deal with the US “because we got very close last time President Trump was in office”.

She also insisted food standards should not be watered down in order to get a deal, saying she did not reach an agreement with Canada when she was in government for that reason.

“What Labour needs to do now is show that they can get a deal that isn’t making concessions, so we can have what we had last month before the trade tariffs, and we need serious people doing this,” she said.

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