he was good at the big picture a visionary

he was good at the big picture, a visionary.” He introduced the “Imagine Programme” at Mercury, which encouraged management and staff to stop thinking of the company as a telephone utility and rather as a vehicle for new ideas and products.A chemistry graduate from University College, London, his first information technology job was with CAP (now the Sema Group) in 1970. He then moved to Midland Bank’s management services for 14 years, and then to PA Consultants for a three-year stint in management consultancy.During his three years with Mercury, the UK’s second- largest telecommunications company, profits more than doubled to pounds 219m.. NIGEL COPE

Asda, the supermarket group leading the challenge against resale price maintenance, has been served with an injunction by two pharmaceuticals groups to prevent it from selling vitamins and minerals at cut prices.
The group lost part of its battle yesterday when a court ruled that from 4pm today eight of the discounted lines will return to the resale maintenance price, an increase of 25 per cent. The two companies involved are Roche Pharmaceuticals, which makes Sanatogen, and Seven Seas which produces the Seven Seas range of vitamin supplements.A wider injunction was thrown out but the two parties are due in court again next Thursday for a further hearing to decide the price level of the 70 remaining lines which are the subject of dispute.Tony Campbell, Asda’s trading director, said: “We continue to fight to bring better value vitamins, minerals and supplements to our customers. We also urge the Office of Fair Trading to speed up their investigations of this outdated price-fixing agreement.”The injunctions follows Monday’s action by Procter & Gamble, Warner Wellcome and Reckitt & Colman which threatened legal proceedings if Asda extended its discounting policy to their products.Asda expressed disappointment the drugs firms had resorted to solicitors’ letters before speaking to the group.The group mounted its challenge to the resale price maintenance of non-prescription drugs last week when it cut the price of 80 vitamins and mineral products by up to 20 per cent.Boots and Sainsbury’s have already responded with some price cuts, though a full-scale price war has not yet been threatened.The mediations battle follows Asda’s successful challenge to the Net Book Agreement which collapsed last month.Asda is also supportive of Tesco’s threat to spark a magazine price war if the industry’s distribution and wholesaling arrangements are not made more flexible..

NIGEL COPE

and CHRIS BLACKHURST
The battle for control of the Littlewoods retail and football pools business took a step forward yesterday when it emerged that Barry Dale, the former chief executive, has lined up powerful City backers to fund his pounds 1.2bn bid for the company.It is the first time details of the consortium have become known and its membership adds weight to Mr Dale’s attempts to wrest control of the privately owned group away from the founding Moores family.The fresh development came as speculation grew that rival groups may also be interested in bidding for the company.Mr Dale sent an offer document to Littlewoods’ advisers Kleinwort Benson on Friday confirming his pounds 1.2bn offer. He is backed by blue chip venture capital groups, including the Prudential, Electra, Candover Investments, Legal & General and Apax Partners.A list of banks, which includes Chemical Bank, Deutsche, Fuji and Nations Bank of the United States, has been lined up to assume the company’s debts and the merchant bank Dawney Day is acting as adviser for the group.Mr Dale’s offer is believed to be worth 848p per ordinary share and 189p per preference share. This is thought to be a 70 per cent premium to the price received by Peter Moores, a family member who sold out last year. The deal values Littlewoods at a significant premium to its net asset value of pounds 870m.Littlewoods said: “We have yet to receive a formal offer but should we receive one we will respond to it.” However, the company acknowledged Mr Dale’s approach to Kleinwort Benson and said that it would be making a response.According to the venture capital groups involved, Mr Dale would be chairman of the group if the bid was successful.John Coleman, former chief executive of Texas Homecare, has also joined the consortium and would become managing director of the retail division.

This includes the Littlewoods stores, the home shopping business and the Index stores. His role would be to inject some razzmatazz into the Littlewoods outlets, which are seen as dowdy and old-fashioned.Another director would be brought in to run the football pools division.Fred Vinton, chairman of Electra, said: “It is the right time for the family to consider their options.” He added that the decision “may not be purely financial”, a reference to the complex emotional issues involved in such a large family- owned company.Mr Vinton said that the indicative offer was not a break-up bid and that he believed the business could be managed in its present form.The offer is not conditional on acquiring 100 per cent control. It is believed the consortium would be comfortable with 75 per cent of the shares and for family members who wished to retain a stake to do so.. DAVID HELLIER

The Lloyd’s of London insurance market claimed a significant legal victory yesterday when a High Court judge upheld the principle of the “pay now, sue later” clause contained in agreements between Lloyd’s agents and its names.
The ruling, which will be the subject of an appeal, was described by Lloyd’s as “significant” and “one which will produce positive benefits for the society and its members”.The test case was brought by Lloyd’s managing agent, Marchant and Eliot Underwriting, over two unpaid cash calls of pounds 6,000 by Dr Andrew Higgins, a member of its syndicates. Mr Justice Rix delivered his 58-page judgment yesterday.Dr Higgins’s defence, based on Article 85 of the Treaty of Rome, which prohibits anti-competitive practices, argued that the “pay now, sue later” clause was anti-competitive.

The judge said he could not understand how the obligation to pay outstanding cash calls could be said to distort competition. Lloyd’s could not operate without such a concept; rather than giving Lloyd’s a competitive edge it simply allowed it to compete on a level playing field with insurance companies.Lloyd’s said the effect of the decision was to enable underwriting agents to obtain judgments against members who do not respond to cash calls and writs requiring payment. A spokesman said he hoped that members would see the judgment for what it was and that “those who fall in the category of won’t rather than can’t pay will pay up”.Philip Holden, head of Lloyd’s financial recovery department, said: “The judgment will enable agents in the market to take positive action to recover many outstanding cash calls. It also represents an unambiguous warning to those who won’t pay their Lloyd’s losses. I hope sincerely that Lloyd’s can begin discussions with those members and, as a result, avoid costly and time-consuming litigation.”Susan Dingwall, partner and head of Dibbs Lupton Broomhead’s insurance and reinsurance group in London, who acted for Marchant & Eliot, said: “This is a significant ruling, which will be welcomed not only by the Lloyd’s agency community but also by those names who have been paying their losses, and by potential investors in the Lloyd’s market.”. MARY FAGAN

Industrial Correspondent
The Government has pledged support for British Gas’s efforts to renegotiate long-term contracts with North Sea producers, which are forcing the company to buy more gas than it can sell.

Tim Eggar, Minister for Energy and Industry, said he could not take a direct role but would act as “moderator or facilitator” if asked, or “if I thought matters were getting out of hand”.Mr Eggar’s statement at a seminar in London marks a significant change in his public stance on the contracts, which until now the Government has said were a matter for the industry. It comes amid mounting commercial pressure on British Gas, which by the end of this year will have been forced to buy about pounds 700m worth of gas which it cannot yet sell. Some City analysts believe that the figure will soar well beyond pounds 1bn within a few years.Mr Eggar said that the introduction of competition has “changed the underlying basis of these contracts”, which were entered into when British Gas was a monopoly buyer and seller of gas throughout the UK. He said that extending competition to domestic customers, beginning next year, would put further pressure on the company.”British Gas can no longer assume all the market risks of selling gas.