Brown spins a global web

GORDON Brown's enterprise summit was an opportunity for the Chancellor to show how he commands the global financial stage.

While the Prime Minister spent much of yesterday grubbing around for votes on university top-up fees, Brown was busy demonstrating his links to the good and the great from Europe and across the Atlantic.

A specific contribution to the economic debate came from Brown himself - and I am not referring to his new prizes for entrepreneurship.

The Chancellor showed the first public indications that he is concerned about the direction of the public finances with borrowing set to hit £40bn this year.

He told his assembled guests that 'the rate of growth in the next spending round will be lower than in this round'.

Brown is due to unveil his new spending plans in detail in June, but will provide a sneak preview in the Budget with health spending likely to be ring-fenced. He is also giving the Bank of England the green light to do its worst and lift interest rates, promising government support for 'difficult decisions'. He does appear to be determined not to forgo stability for stronger growth.

His conference was neatly sandwiched between the gabfest on the slopes of Davos and next weekend's session of the Group of Seven richest countries to be held in Florida.

Oddly enough, the weakness of the dollar was the subject which dared not raise its name on the official agenda in London - even if it was the subject of choice in the corridors.

The dollar was stronger on the exchanges in latest trading amid speculation that Jean-Claude Trichet and the European Central Bank are preparing the way for an interest rate cut, unless the Americans act to stem the US currency slide. There was no hint of a rate reduction in Trichet's London speech. There was, however, pointed criticism that Britain, Denmark and Sweden were were part of the EU, but outside euroland.

But, primarily, Brown was enjoying the chance to network with his American knights.

Alan Greenspan KBE, beamed in from the Federal Reserve in Washington, paid tribute to 'nimble markets', praising their contribution to higher living standards.

Bill Gates, having fought the American courts to standstill over anti-trust charges, was in London as a symbol of the free enterprise economy.

How much nicer for the Chancellor to host greatness and to wait for a call to higher things, rather than having to worry about tuition fees and Hutton.

Delaware challenge

A WEEK has passed since the Barclay brothers made their audacious bid for the companies which control the Telegraph newspapers and other media assets. The hold they established looks more tenuous by the day.

There were always going to be real questions as to whether the directors and external shareholders of Hollinger International, the US-quoted group, were going to hand over ownership of the newspaper titles worth £1bn or more for just £260m.

The big obstacle for the Barclays was always likely to be the voting structure. Ownership of Ravelston and Hollinger Inc would give the brothers 70% of the votes, but just 30% of the equity.

This was fine when there was a clear line of ownership and control throughout Conrad Black's empire. But once a new proprietor was in place, the directors of Hollinger International, led by chief executive Gordon Paris, had a fiduciary duty to protect the minority shareholders (actually the majority in economic terms) from a potentially hostile owner.

Going to the Chancery Court in Delaware, which has a long tradition of upholding shareholders' rights, was always an option. It is now being exercised by Hollinger International. The Delaware court, like our own Takeover Panel, has a reputation for supporting the rights of minorities.

The balance in the battle for the Telegraph is shifting decisively away from Black and the Barclays towards Lazards and the auction process for the full range of Hollinger titles.

Shrinking shops

THERE is something of a 'me too' factor in the decision by grocer J Sainsbury to bid £130m for the privately-held TM Group, owners of the Martins and Forbuoys chain of newsagents.

Tesco, as always, has been making the running in going micro, with Marks & Spencer pursuing an organic strategy through Simply Food.

But you have to ask: where will it all end? Will Tesco, which brought the supermarket idea to Britain from the US, consider returning to its roots by going back to the street markets up and down the country where the late Jack Cohen, the founder, started it all?

It must be the logical next step.