In short

Other financial news in brief

UK inflation rate rises to 16-year high

Britain's inflation rate rose to its highest level in 16 years in August and more than double the central bank's target, requiring the Bank of England to explain publicly why prices are rising so fast.

The Office for National Statistics said consumer prices rose 0.6 per cent on the month, taking the annual rate to 4.7 per cent from 4.4 per cent in July.

That was the highest since the series began in 1997 and the ONS said it was the highest since April 1992 using historical data based on a different measure of inflation.

The market consensus was for a 4.6 per cent annual inflation rate.

The main driver was soaring gas and electricity bills, which added 0.3 percentage points to the annual CPI rate. Food prices also had an upward impact but were offset by lower petrol prices. - (Reuters)

Judgments against Dublin solicitor

Dublin businessman and solicitor Ciaran Callan has had two judgments totalling €6,700 registered against him by South Dublin County Council.

Some €2,000 of one judgment for €3,175 has been paid by Mr Callan, trading as Callan Co Solicitors with an address at Dodder Park Drive, Rathfarnham, Dublin 14.

Endesa rules out bid for Viridian

Spanish energy group Endesa says it is not going to follow up its recent deal with the ESB by bidding for Viridian's power plants in the Republic.

Endesa agreed to buy generating plants in Tarbert, Co Kerry and Great Island, Co Wexford, from the ESB in July.

The group was reported to be in talks with Viridian to buy its two power plants in Huntstown plants in Co Dublin and its renewable energy interests for around €2 billion.

Bloomberg news agency reported yesterday that an Endesa spokeswoman said that the Spanish company does not intend making an offer for the Viridian business.

PetroNeft drops to record low

PetroNeft Resources, the Dublin- based explorer operating in Russia, dropped to a record low in London trading after failing to find oil or gas at its West Korchegskaya 1 well in Siberia.

PetroNeft fell 4.75 pence, or 23 per cent, to 16.25 pence, the lowest since the shares began trading in September 2006.

The drop extends the stock's decline this year to 53 per cent, valuing the company at £31.2 million ($55.6 million).

The explorer said in a statement it was "disappointed" with the results and will focus on starting production next year from four proven wells in the License 61 area in Russia's Tomsk region.- (Bloomberg)

Pan Andean wins licence in Peru

Pan Andean Resources, the Irish explorer operating in Latin America and the US, was awarded a license to search for oil and natural gas in Peru's Block 161.

The block is situated in the west of the Ucayali basin in central Peru, the Dublin-based company said today in a statement distributed by the Regulatory News Service.

Pan Andean has already identified three prospects: Pisqui, Tahwaya and Juanita. The explorer holds three other Peruvian blocks, it said. - (Bloomberg)

Adecco abandons plans to buy rival

Adecco, the world's largest staffing company, abandoned plans to buy British rival Michael Page yesterday, sending shares in the UK company down by more than 30 per cent.

Adecco said it could not justify paying a higher price. It added that turmoil in financial markets did not influence its decision.

The announcement brought to an end a takeover struggle that has continued over several months.

"The 'no-go' is, at least for the short-term, definitely more advantageous than Adecco offering a high takeover price, although the deal would have made strategic sense," said Sarasin analyst Patrick Hasenboehler.

Adecco said it would not have been able to secure the deal on "terms satisfactory to Adecco" and that it wanted to remain financially disciplined as far as takeovers were concerned.

Michael Page, a company which specialises in the professional staffing market, twice rejected as too low an offer from Adecco which valued it at £1.3 billion (€1.64 billion), or 400 pence per share. - (Reuters)