Wednesday newspaper round-up: Takeover rules, defence cuts, hotel issues

Bidders for UK stock market listed companies must lay out more detailed plans for their target, including location of its head office and research and development investment, under proposed rules put forward by the takeover watchdog and backed by the government. The new rules, which were published in a consultation document on Tuesday, also give companies, unions and other employee representatives more time to respond to bids in changes which follow the controversial £115bn attempted takeover of Unilever by Kraft Heinz earlier this year. - Guardian

Military chiefs are considering reducing the size of the Royal Marines by 1,000 as part of a cost-cutting defence review, The Times understands. Other options include scrapping at least one amphibious assault ship, the early retirement of a fleet of C130 transport aircraft and a slowdown in the purchase of F35 fast jets as the Ministry of Defence must find up to £3 billion a year in savings to fund a ten-year plan for the shape and size of the armed forces that was unveiled in 2015. - The Times

Public services will deteriorate unless the government scraps its cap on public sector pay and finds the money to cover the extra cost without squeezing budgets, a leading think tank has warned. The Institute for Fiscal Studies said that standards would drop at hospitals and schools in particular if the government were to run into recruitment problems because of low pay. - The Times

The weak pound may have proved a boon to British hotels, but the rising cost of imported goods is starting to put a squeeze on margins while filling job vacancies is proving a challenge. According to a report by PWC, the accountancy firm, the slump in the value of sterling has attracted more foreign tourists, helping the hotel industry to withstand the impact of the terrorist attacks in London and Manchester, but the report predicts growth next year will be slower because of a deceleration in the economy, some waning of the effect of the weak pound on tourism and a big increase in new room supply. - The Times

US airlines have told the UK to move faster to ensure passenger and cargo flights to Heathrow, Stansted and other airports will continue without disruption after Britain leaves the EU. The aviation trade body Airlines for America, whose members include United, American Airlines and FedEx, says the multibillion pound traffic in both directions will be put at risk unless politicians concentrate their minds on the impact Brexit will have on the industry. - Guardian

Ryanair has offered pilots a one-off bonus of up to £12,000 to forfeit holidays, according to a memo seen by the Guardian, as it battles to prevent further flight cancellations caused by a “mess-up” in its rota system. The Irish airline’s chief executive, Michael O’Leary, apologised this week after saying that up to 50 flights a day would be cancelled until 31 October, affecting about 400,000 passengers. - Guardian

Heathrow is urging the Government to scrap a punitive travel tax on domestic flights to support economic growth as part of a nine-point Brexit plan. The airport has written to the Chancellor Philip Hammond ahead of the Budget in November with a plea for air passenger duty (APD) to be removed on domestic routes, arguing that UK passengers pay an extra £225m each year compared to those in Europe. - Telegraph

British Airways has begun consultations with employees and trade bodies over a new pension plan a fortnight after its proposal to close its earlier scheme was blasted by unions. The carrier said the new scheme would be "more flexible", giving staff pension choices such as whether to take the employer contribution to the scheme as cash or for higher employer contributions. - Telegraph

The Treasury Select Committee has questioned a decision by the UK audit watchdog to clear KPMG over its work with HBOS just before its rescue, with chairman Nicky Morgan demanding a full explanation as to why the auditor has been allowed to get off scot-free. The Financial Reporting Council (FRC) is closing its probe into the accounting giant's conduct after finding its audit of HBOS just before it collapsed and was taken over by Lloyds "did not fall significantly short of the standards reasonably to be expected". - Telegraph

Purplebricks has been accused of “corporate bullying” by the operators of a consumer review website that the online estate agent has threatened to sue. Allagents, which lists consumers’ reviews of estate agents, said that it had taken the “unprecedented step” of suspending the Purplebricks account on its site after receiving a legal letter over negative reviews that it was hosting. - The Times

Business leaders remain confident in London’s status as a base for their companies, tipping the technology and creative sector as a key area for UK growth. New research from the Confederation of British Industry (CBI) claims nine in ten (91pc) of the capital’s business leaders still believe London remains a good or great base for businesses, despite Brexit-related risks. - Telegraph

BHP Billiton is rethinking its membership of Australia’s leading mining organisation over differences on climate change. The world’s largest mining company, and one of the world’s largest producers of coal, committed yesterday to publishing a review of its membership of trade associations and explicitly disclosing where there were “material differences” in their positions. - The Times

Printer manufacturers are facing a groundbreaking criminal lawsuit in France over claims that they deliberately limit the lifespan of their machines. The lawsuit has been brought by Halte à l’Obsolescence Programmée (Stop Planned Obsolescence), an environmental association, after laws were introduced to ensure that household appliances last longer. - The Times

It was the classic British off-roader, whose many fans ranged from the Queen to Fidel Castro. Now the Land Rover Defender’s “spiritual successor” could be built by one of its richest devotees — on a German production line. Jim Ratcliffe, the billionaire British industrialist, claimed yesterday that he could create up to 10,000 jobs by manufacturing his new 4x4 in the UK but warned that it was likely to be made overseas unless the government gave him financial support. - The Times

French oil company Total is in talks with tech giants Google and Microsoft to help develop bespoke artificial intelligence (AI) in the energy sector’s race to tap digital technologies. Engineers at Total are currently working alongside top software developers to explore how complex algorithms could be applied to its work in oil and gas. - Telegraph