DENIS O'BRIEN TO BUY OUT DIGICEL MINORITIES - The FT reports that telecoms entrepreneur Denis O'Brien is to raise a $1.4bn bond to buy out the minority shareholders in his 78%-owned Digicel telecoms company, in a deal that values the Caribbean-based mobile operator at $2.4bn (£1.2bn).
The paper says that according to New York bankers involved in the deal, the Irishman will receive $1.87bn for his stake, reinvesting between $1bn and $1.1bn in a new company, which he will own outright.
RUMOURS BT TO REVIEW IRISH OPERATIONS - The Irish Independent reports that BT Ireland, a subsidiary of British giant BT, has racked up losses of nearly €1bn since entering the Irish market, according to figures just registered at the Companies Office.
The paper says the figures come at a time of increased expectation that the parent will conduct a review of its Irish business.
The article says sources close to the company said yesterday that BT Ireland is over-staffed and is likely to reconsider its position in relation to residential telecoms services, including fixed-line telephony and broadband services.
According to the figures, BT Ireland had 960 full-time employees at the end of the year but, including contract staff, employs more than 1,000 in the Republic.
****
LIMITED HEALTH COVER PROPOSED BY WATCHDOG - The Irish Times reports that the Competition Authority has proposed that health insurers should be allowed to market "limited cover" products which would be cheaper for the subscriber but offer a restricted range of hospitals or doctors who could provide treatment.
The paper says that in a report on the health insurance sector commissioned by Minister for Health Mary Harney, the authority proposes that the Government's existing rules on minimum benefits that insurers must provide be simplified and updated.
It recommends that products offering limited cover should be permitted subject to prior approval by the market regulator, the Health Insurance Authority.
It suggests that such a move would allow companies to offer lower-cost health insurance plans by agreeing reimbursement terms with a limited number of selected hospitals or consultants.
The Irish Times says such plans could possibly exclude maternity benefits and the report also argues that the introduction of a controversial risk equalisation scheme for the sector will result in average prices increasing all round.
****
CALL TO BUY AFRICAN FLOWERS - The Guardian reports that British and Kenyan governments have weighed into the growing debate over food miles, insisting it was ethically and environmentally sound to buy flowers from Kenya on Valentine's Day.
There is increasing concern at the amount of carbon emitted by the fleets of aircraft that carry millions of flowers to Europe every day from the East African nation.
The paper says that Kenyan High Commissioner to Britain, Joseph Muchemi, said: 'Food miles is a valuable concept, but it must be looked at in the whole.'
He is quoted as saying:' Food miles, or the distance food has travelled, is on its own, not a reliable indicator of the environmental impact of food transport.'
International development secretary Hilary Benn is quoted as saying that while people wanted to buy ethically and do their bit for climate change, they often didn't realise that they could support developing countries and reduce carbon emissions.
The report points out that air freight of fresh flowers, fruits and vegetables from the whole of sub-Saharan Africa accounted for less than 0.1% of total UK carbon emissions.
******
LONDON TRAFFIC STILL BAD DESPITE CHARGE - The Financial Times reports that traffic delays increased sharply in central London last year in spite of the £8-a-day congestion charge, the mayor of London has revealed.
Congestion was just 8% down on pre-congestion charge levels, according to the latest figures from Transport for London. That compares with a 30% cut in traffic delays in 2003, the year the charge was introduced.
The paper says, to make matters worse, congestion in the central zone is forecast to rise by up to another 5% after the extension of the charge into west London, which takes effect next Monday.
TfL, the capital's transport authority, blamed the rise in congestion on an increase in roadworks, particularly by utility companies.
Nevertheless, the Guardian says that Ken Livingstone insisted that without the charge London's roads would be near gridlock.
In spite of the increase in traffic delays, he said the num-ber of vehicles entering the central zone was still 20% below pre-charge levels.
