The pound leaps on prospect of rate rise – papers 22nd Sept

STERLING LEAPT TO a two-year high yesterday as there is growing expectation of further rises in UK interest rates, according to the Scotsman .

The pound rose 0.4% to 67p against the euro yesterday, buoyed talk of continuing central bank demand for the pound, before slipping back to 67.19p and was up 0.7% against the dollar to $1.9012, as further talks suggests base rates may have to go up again soon.

AMARANTH ADVISORS, the hedge fund manager which suffered disastrous losses last week after its trades in the US natural-gas markets went seriously wrong, has admitted it had faced “forced liquidation” by its creditors, says the Times.

In a letter to investors late on Wednesday, Amaranth said it had disposed of trades in its other portfolios to stave off its creditors.

Citigroup has entered negotiations to buy a stake in Amaranth, which was once worth $9.5bn (£5bn) but has lost more than $6bn this month. A deal would give the hedge fund a cash injection, and bolster the bank’s hedge fund unit, which now manages more than $17bn.

Standard & Poor’s has since said in a report the hedge fund could have avoided its losses by applying “fairly standard risk management principles”.

MARK NORBOM, head of Prudential's Asian business, has unexpectedly quit, says this morning’s Daily Telegraph.

The company said Norbom was stepping down as chief executive of Prudential Corporation Asia and that a successor would be announced "shortly".

A spokesman for the company said the decision was mutual and Norbom had agreed with Prudential's chief executive Mark Tucker "it was time for him to move on".

He would not comment further on the reasons for Norbom's departure or whether he would receive any compensation for loss of office but Norbom was paid £1.17m in 2005, according to the annual report.

THE TIMES describes the situation as Pru “ousts” Norbom and suggests he is expected to walk away with a pay-off of around £1m.

AND INCISIVE MEDIA’S four executive directors are taking the business information group and publishing private in a £199m cash deal backed by Apax Partners after becoming increasingly frustrated with the public markets, continues the Telegraph.

The publishers of titles including Investment Week and IFAonline agreed 195p-a-share offer will see the four directors, holding almost 10% of the company, cash in shares worth £18.3m.

Tim Weller, the founder and chief executive, stands to pocket £10.3m, while James Hanbury, the chief operating officer, has shares worth £4.35m. Nick Rapley, a director, has a £2.93m stake, while Jamie Campbell-Harris, finance director, holds £690,000 of shares.

But the Guardian adds some shareholders are pushing for a higher selling price as Incisive’s largest shareholder, Standard Life Investments - with 12% - has characterised 195p a share as "a low-ball bid".

If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Julie Henderson on 020 7968 4571 or email julie.henderson@incisivemedia.com.