Article Abstract:
Breweries are developing new public house ownership schemes in anticipation of regulatory changes stemming from the Monopolies & Mergers Commission's recent report on industry practices. The main point of contention surrounds the the competitive implications of the 'brewery tie'. Under the 'brewery tie' brewers own both production and exclusive retail facilities. Some of the new schemes that are being developed include the Courage Pub Co's autonomously-managed public house property company which is 50%-owned by the parent company. Another new idea is Elders IXL Ltd's 'Ashwick' scheme currently being used by Carlton & United Breweries Ltd and Devenish Ltd. The scheme features a series of joint venture companies where half of a pub is owned by a brewer and half is owned by an operator. Grand Metropolitan PLC's 'inntrepreneur' scheme replaces the usual short term lease with a 20-year lease which can be transferred to a third party.
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Article Abstract:
Venture capitalists are feeling the effects of the recession. The industry, previously thought of as being impervious to the economic cycle, is seeing annual rates of return on investments on business ventures fall from the 30% or 40% that were usual in the past. There are those, however, who remain optimistic about the opportunities available to venture capitalists in a recessionary economy. Wild fluctuations in business activity and in corporate cash requirements, as well as the streamlining of operations, are expected to result in more divestments and, consequently, more demand for venture capital. Additionally, the economic downturn is also causing the number of forced sales of businesses to increase. Nonetheless, most venture capitalists now recognize that the industry, particularly in the area of management buyouts, is affected to a certain degree by the economic cycle.
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Article Abstract:
The UK Betting and Gaming Act legalized off-course betting in 1960, of 1960, and more recently in 1986 the the rules relaxed to allow for a more pleasant betting environment. The three largest bookmakers, William Hill, Ladbroke, and Coral account for 60% of UK book-making business. Individual bookmakers have dropped in number to under 6,000 in 1988 from a high of 8,000 in 1978 while betting shops have decreased to 10,3000 in 1989 from 12,800 in 1978. There is some disagreement by financial analysts on the effects a lagging economy and possible recession will have on the book-making industry. The last recession in 1981-1982 caused a mild downturn in the industry, but Barclays de Zoete Wedd analysts Lindsay Russell is optimistic about the industry because of further deregulation, the extension of operating hours, and the prospects of expansion to continental Europe and the US.
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