Connect with us

Published

on

Aldermore Group, the mid-sized consumer and business lender, has hired advisers to plot a takeover of the Co-operative Bank.

Sky News has learnt that Aldermore, which is itself owned by South Africa’s FirstRand Group, is working with investment bankers on BNP Paribas on the size and structure of an offer.

City sources said on Tuesday that Aldermore intended to table a bid ahead of a deadline set by the Co-operative Bank’s advisers early next month.

Its interest will see it competing against Shawbrook, another medium-sized British bank, which Sky News revealed last month had approached the Co-operative Bank’s advisers with a £3.5bn merger proposal.

Other lenders cited as potential bidders, including Paragon Banking Group and OneSavings Bank – are now regarded by industry insiders as being unlikely to participate in the auction.

The process has been launched against a backdrop of rising interest rates, which has boosted banks’ profitability, at the same time that confidence recovers from the collapse of Silicon Valley Bank and the emergency takeover of Credit Suisse by Swiss rival UBS.

In the autumn of 2021, the Co-operative Bank approached Spanish-owned TSB about a merger, but talks failed to progress.

More from Business

A successful sale of the formerly mutually owned bank would come as a relief to regulators which have twice had to play roles in rescues over the last decade.

In 2013, the Co-operative Bank’s bid to acquire the branch network which became TSB was left in ruins when the scale of its own crisis emerged.

It was forced to turn to American hedge funds to secure a £1.5bn rescue, while its former chairman, Paul Flowers, was left humiliated by tabloid revelations about his private life.

The lender then needed a further bailout by investors in 2017, with two major investors – Bain Capital Credit and JC Flowers – subsequently taking a 10% stake in the company.

The remainder of its equity is owned by a syndicate of hedge funds.

Earlier talks about a sale of the Co-operative Bank to Cerberus Capital Management, an often-controversial investor, broke down in December 2020.

Aldermore, which has about 800,000 customers, is viewed as a logical bidder for the Co-operative Bank.

Last week, the South African-owned institution reported a strong set of full-year results, with statutory pre-tax profit up 9% to £222.5m.

PJT Partners and Fenchurch Advisory Partners are advising the Co-operative Bank on the sale.

Aldermore and the Co-operative Bank declined to comment.

Continue Reading

Business

Donald Trump threatens to impose additional 100% tariff on ‘extraordinarily aggressive’ China

Published

on

By

Donald Trump threatens to impose additional 100% tariff on 'extraordinarily aggressive' China

Donald Trump has announced the US will impose an additional 100% tariff on China imports, accusing it of taking an “extraordinarily aggressive position” on trade.

In a post to his Truth Social platform on Friday, the US president said Beijing had sent an “extremely hostile letter to the world” and imposed “large-scale export controls on virtually every product they make”.

Mr Trump, who warned the additional tariffs would start on 1 November, said the US would also impose export controls on all critical software to China.

The president added that he was imposing the tariffs because of export controls placed on rare earths by China.

He wrote: “Based on the fact that China has taken this unprecedented position, and speaking only for the USA, and not other nations who were similarly threatened, starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a tariff of 100% on China, over and above any tariff that they are currently paying.

“It is impossible to believe that China would have taken such an action, but they have, and the rest is history. Thank you for your attention to this matter!”

President Trump says he sees no reason to see President Xi as part of a trip to South Korea. Pic: Reuters
Image:
President Trump says he sees no reason to see President Xi as part of a trip to South Korea. Pic: Reuters

Mr Trump said earlier on Friday that there “seems to be no reason” to meet with Chinese leader Xi Jinping in a scheduled meeting as part of an upcoming trip to South Korea at the end of this month.

He had posted: “I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems no reason to do so.”

Read more:
China tightens control of global rare earth supply
Three things you may have missed from China this week

The trip was scheduled to include a stop in Malaysia, which is hosting the Association of Southeast Asian Nations summit, a stop in Japan and then the stop to South Korea, where Mr Trump would meet Mr Xi ahead of the Asia-Pacific Economic Cooperation summit.

Mr Trump added: “There are many other countermeasures that are, likewise, under serious consideration.”

The move signalled the biggest rupture in relations in six months between Beijing and Washington – the world’s biggest factory and its biggest consumer.

It also threatens to escalate tensions between the two countries, prompting fears over the stability of the global economy.

Please use Chrome browser for a more accessible video player

Sky’s Siobhan Robbins explains why Donald Trump didn’t receive the Nobel Peace Prize

Friday was Wall Street’s worst day since April, with the S&P 500 falling 2.7%, owing to fears about US-China relations.

China had restricted the access to rare earths ahead of the meeting between Presidents Trump and Xi.

Under the restrictions, Beijing would require foreign companies to get special approval for shipping the metallic elements abroad.

Continue Reading

Business

Google warns against ‘onerous regulations’ after UK competition ruling

Published

on

By

Google warns against 'onerous regulations' after UK competition ruling

Google has warned the UK against imposing “onerous” and costly regulations after the competition watchdog ruled it had “strategic market status” for its search services.

The Competition and Markets Authority (CMA) said legal tests had been met to designate Google with the status in general search and search advertising services due to “substantial and entrenched market power”, with more than 90% of searches in the UK taking place on its platform.

The designation gives the CMA greater control on how Google operates its UK services.

The regulator said the Alphabet-owned firm’s Gemini AI assistant was not in the scope of the designation but other AI functionality, including AI Overviews, were.

Money latest: National insurance rumour prompting landlords to act

It launched the inquiry in January after new powers came into force and had previously flagged the finding in a provisional decision.

The CMA said the legislation allowed proportionate action to “improve competition in digital markets, helping to drive innovation, investment and growth across the UK economy”.

More from Money

It added that it would begin consultations on possible remedies soon.

What could happen?

These could include demanding changes to its search engine in the UK, including through so-called “choice screens”, and giving publishers more power.

Any action could risk a row with the government, as ministers seek a “growth first” agenda within the country’s regulatory bodies.

Will Hayter, executive director for digital markets at the CMA, said: “By promoting competition in digital markets like search and search advertising we can unlock opportunities for businesses big and small to support innovation and growth, driving investment across the UK economy.

“We have found that Google maintains a strategic position in the search and search advertising sector – with more than 90% of searches in the UK taking place on its platform.”

Google responded by arguing that the designation risked unintended consequences such as price rises and hits to innovation and growth.

Read more from Sky News:
Hack of popular messaging app shows risks of online age checks
Customers of five water firms facing higher than expected bill hikes

Its senior director for competition, Oliver Bethell, said: “The UK enjoys access to the latest products and services before other countries because it has so far avoided costly restrictions on popular services, such as search.

“Retaining this position means avoiding unduly onerous regulations and learning from the negative results seen in other jurisdictions, which have cost businesses an estimated 114 billion euros (£99.2 billion).

“Many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation.

“Others pose direct harm to businesses, with some warning that they may be forced to raise prices for customers.”

Continue Reading

Business

Discord hack shows dangers of online age checks as internet policing hopes put to the test

Published

on

By

Discord hack shows dangers of online age checks as internet policing hopes put to the test

Messaging platform Discord has said the official ID photos of around 70,000 users have been stolen by hackers.

The app, which is popular with gamers and teenagers, said the hackers targeted a firm responsible for verifying the ages of its users. Discord said its own platform was not breached.

The stolen data could include personal information, partial credit card numbers and messages with Discord’s customer service agents, the firm said.

No full credit card details, passwords or messages and activity beyond conversations with Discord customer support were leaked, it added.

Discord said it had revoked the third-party service’s access and was continuing to investigate. It said all affected users have been contacted.

“Looking ahead, we recommend impacted users stay alert when receiving messages or other communication that may seem suspicious,” it said.

Until recently, a hack like this could not have happened, because companies had no need to process and collect proofs of age.

More on Cyber Attacks

Now, so many governments are following the UK and introducing age verification for unsuitable or pornographic content that a company like Discord has to roll out age checks for a decent portion of its 200 million active users.

It’s a bit like the way that shops have to check your age if you’re buying alcohol – only because it’s online, it comes with a lot of additional complications.

Pic: Shutterstock
Image:
Pic: Shutterstock

A shop, for instance, won’t keep a copy of your passport once they’ve checked your age.

And it definitely won’t keep it in a massive (yet strangely light) safe along with thousands of other passport photocopies, stored right by its front door, ready to be taken.

Online, it’s surprisingly easy to do just that.

Read more on Sky News:
AI ‘distorting women online’
Pros and cons of digital IDs
Impact of new online safety rules

It’s worth noting that the age verification system used by Discord wasn’t hacked itself. That system asked people to take a photo of themselves, then used software to estimate their age. Once the check was complete, the image was immediately deleted.

The problem came with the appeals part of the process, which was supplied to Discord by an as-yet-unnamed third party.

If someone thought that the age verification system had wrongly barred them from Discord they could send in a picture of their ID to prove their age. This collection of images was hacked. As a result, Discord says, more than 70,000 IDs are now in the possession of hackers.

(The hackers themselves claim that the number is much bigger – 2,185,151 photos. Discord says this is wrong and the hackers are simply trying to extort money. It’s a messy situation.)

There are ways to make age verification safer. Companies could stop storing photo ID, for instance (although then it would be impossible to know for sure if their checks were correct).

And advocates of ID cards will point out that a proper government ID could avoid the need to send pictures of your passport simply to prove your age. You’d use your digital ID instead, which would stay safely on your device.

But the best way to stop data being hacked is not to collect it in the first place.

We’re at the start of a defining test – can governments actually police the internet? Or will the measures that are supposed to make us safer actually end up making us less secure?

Continue Reading

Trending