It is understood that chairman DrummondHall is in negotiations with billionaire Joe Lewis and Elpidathe investment vehicle for tycoons JP McManus and

It is understood that chairman DrummondHall is in negotiations with billionaire Joe Lewis and Elpida,the investment vehicle for tycoons JP McManus and John Magnier.However, it was not clear on Thursday night if either partywould take up the offer to join as a non-executive director ofM&B. Defending its intention, the supermarketsaid: "In Tesco, many of our managers own and hold Tesco sharesover a long period. This is about fair treatment to loyal staffmembers who leave us on good terms because of ill health,redundancy or retirement." M&B SEEKS TO FEND OFF INVESTOR REBELLION Mitchells & Butlers (MAB.L) will offer its two biggestshareholders board representation in an attempt to head off apotential rebellion. Investor advisory serviceRiskmetrics is calling on shareholders to vote against changesto the share option scheme, which would extend the one-yearperiod in which leaving or retiring executives can exerciseoptions by three years.

TESCO TO FACE INVESTOR NO VOTE At Tesco's (TSCO.L) annual meeting on Friday, the largestretailer in Britain is set to face strong opposition to itsplanned share option scheme changes. Values have alsobeen helped by the low level of availability. According toagents at Knight Frank, this follows three consecutive quartersof falling prices. LONDON MAYOR HITS AT LDA CUTS The Mayor of London, Boris Johnson, has attacked proposalsfrom the government to slash millions from the LondonDevelopment Agency's budget to help fund housing programmes.Johnson warned business secretary Lord Mandelson that theswitching of money to fund the "Building Britain's Future"programme would leave the agency's ability to fund Johnson'spriorities for the capital's economic development in jeopardy.The LDA faces cuts of up to five million pounds this year and 17million pounds in 2010-11. In the second quarter, valuesincreased by 3.1 per cent as they were boosted by sales toworking farmers, as well as some signs of stability in pricingfor weekend farmhouse homes with land attached.

PRICES FOR FARMLAND GROW AS CONFIDENCE RETURNS For the first time in nearly a year, English farmland valueshave soared on the back of renewed confidence in the sector asan investment asset class. "David is anoutstanding addition to the MPC and one of the best appliedeconomists in Britain today, but there is a clear potential forconflict and I am concerned that a precedent would be set," saidConservative MP Andrew Tyrie. Ministers want an urgent report into potential conflictsof interest surrounding Miles' continued role as non-executivedirector of the Financial Services Authority. DOUBTS CAST ON MPC NEWCOMER On Wednesday, MPs questioned the independence of the newestmember of the Bank of England's monetary policy committee, DavidMiles. The difference between the two figures serves as astriking illustration of the financial hit of firms, likeClifford Chance, that have suffered from both expensive job cutsand close ties with the banking industry. Lastyear, Freshfields received nearly twice as much as theircounterparts at Clifford Chance, by receiving 1.444 millionpounds. When this was discovered, the positions wereclosed." PROFITS CHASM IN 'MAGIC CIRCLE' OF LAW FIRMS Freshfields Bruckhaus Deringer unveiled record partnerprofits on Thursday, just a day after rival Clifford Chanceannounced that earnings had plummeted by more than a third.

The biggest over-the-counteroil brokerage in the world said: "As a result of a series ofunauthorised trades, substantial volumes of futures contractswere held by PVM. London-based PVM Oil Associates admitted onThursday that it had been the "victim of unauthorised trading"and had been forced into the loss. Financial Times Stocks ROGUE OIL BROKER TRIGGERED PRICE SPIKE It has emerged that a rogue broker was the cause of thestartling increase in oil prices to their highest level thisyear on Tuesday. The broker had placed a massive bet in theBrent oil market and triggered nearly 6 million pounds ($9.87million) of losses. ($1=A$1.25) (Editing by Michael Urquhart) China Indonesia. Gladstone Pacific announced on June 30 that a jointdevelopment of the Gladstone refinery with China MetallurgicalConstruction Corp had lapsed and the project's developmentwould be put on hold.

Palmer, who also owns iron ore deposits in WesternAustralia and coal interests in Queensland, is a director ofGladstone Pacific Nickel Ltd (GPNG.L), a listed company thathad planned to build a $3.65 billion nickel and cobalt refineryin the Queensland industrial port city of Gladstone. BHP said it would write down the value of Yabulu assets by$500 million and write off a further $175 million inunrecoverable tax benefits The sale is expected to befinalised by July 31. Palmer, who made his fortune in the 1980s out of a propertyboom on Queensland's Gold Coast, plans to keep running Yabuluon nickel ores from mines in New Caledonia, Indonesia and thePhilippines. Nickel sells for around $16,450 a tonne, down from recordhighs above $51,000 a tonne two years ago. "I think it will go up to $8.50 or $9.00 a pound($19,125-$20,250 per tonne) in the next year and a half,"Palmer said. "Yabulu has a 30,000-tonnes-per-year nickel making capacityfor ore supplied from the Pacific region and that's where weare leaving it for now," Palmer told Reuters.