The trustees will want a cast-iron promise that Mr Icahn does not walk away from the scheme.. His previous offer to the scheme was for a one-off payment of $130m. Members would have had to hope that returns from equity investments would fill the rest of the shortfall. The company reported a cash balance of £335m at the end of the second quarter on 30 September, up from £188m at the end of the first quarter, but the latest balance included the £204m received from the OPP divestment.Mike Parton, the chief executive, said: “We continue to make progress in challenging market conditions. Already retired workers could also have seen their income levels in jeopardy. “The unions are satisfied that in principle the deal is workable and understand that the administrators, Kroll, will be working with the independent trustee to resolve some issues that have arisen from the proposals,” a statement from the unions said.The promise of ongoing commitment from Mr Icahn, described as a Gordon Gekko-style corporate raider, marks a step change from his original stance. However export sales slipped to a 12-month low.The number of factories planning to take on staff rose to an eight-year high while their investment intentions rose to a seven-year peak.
Services employment plans remained at a four-year high although investment intentions weakened.Both sectors plan to raise prices, echoing the warning from Mervyn King, the Governor of the Bank, about signs of cost pressures across the economy. David Kern, at the BCC, said: “Additional rate rises might be dangerous because.. the recovery may be faltering.”. Marconi shares plummeted 15 per cent yesterday after the company revealed extra costs and suggested that it would be a “challenge” to make its profit margin target. Cazenove said: “The cash position is disappointing,” adding that tax and transaction costs on the disposal of Marconi’s Outside Plant and Power business in August were higher than expected.
A balance of 30 per cent of companies saw a rise in home sales, down from 38 per cent in the previous quarter, while the balance on orders dipped to 23 from 28 per cent both the lowest level this year. Manufacturing posted surprisingly strong results in the wake of the poor results from official data, with domestic orders rising sharply. David Frost, its director general, said: “Overall the survey results are not alarming but they are disappointing and positive moves to support the business sector now need to be made.”Analysts said that although the survey was not as weak as the City expected, it would be enough to keep the Bank from raising rates next month for a fifth time this year.The BCC said its survey was the latest evidence that the UK economy had hit a “soft patch”. Mr Frost said businesses had been hit by three blows rises in official and market interest rates, a surge in prices of commodities such as oil, and slower demand across its key export markets. “These have come together at a single point in time,” he said, adding that several business managers across the country said they were exasperated by the growing weight of new regulations on business.The survey showed that services suffered more than manufacturing with “marked” falls in domestic sales and orders, investment intentions and profit expectations.
