GLANBIA REACH DEAL TO SELL OFF DAIRY DIVISION - As expected, Glanbia plc, says it has conditionally agreed to shed its Irish dairy and agri-business in a deal worth up to €343m. A deal has been struck with the plc's majority shareholder - the co-operative of farmers who supply it with milk. The move is a seismic change in the relationship between farmers and consumers and sees Glanbia unyolk itself from its co-operative heritage.
The chairman of the Glanbia Co Operative Society, Liam Herlihy, says that the logic is very simple behind the deal. He says it had always been argued that every group of farmers and every business has to reinvent itself on an ongoing basis. He says this is an opportunity for farmers to grow their own business in their own right. He points out that up to this, farmers' businesses had been restricted by quota regulations since 1984. He says that farmers regard the move as a unique opportunity.
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MORNING BRIEFS - Aer Lingus has estimated that the disruption caused by the volcano has cost the airline between €15-20m. In a statement this morning, it said it is losing between €4-5m a day. However, the airline said it had substantial cash reserves and could withstand a sustained closure of airspace.
*** Tesco has unveiled a 10.1% rise in annual profits to a record £3.4 billion sterling. Chief executive Terry Leahy said the retailer 'had weathered the economic storm well'. Tesco said it saw a sales decline here, and that it has cut prices on 12,500 items by a fifth thanks to sourcing international groceries through the UK rather than Irish distributors.
***On the currency markets, the euro is worth $1.3457 and 87.8 pence sterling.
