Big business news.......

The Prudential has failed in an attempt to but AIA, the Asian insurance business of US group AIG, after shareholders opposed the agreed $24.6 billion price. Although a deal had been agreed last week, a number of shareholders said it was paying too much and vowed to vote against the deal if the price couldn't be lowered. The attempted takeover could cost the Prudential around £150 million in compensation fees to AIG as well as money to banks, lawyers, public-relations firms and advice. It is also expected that the Prudential's chief executive Tidjane Thiam may have to resign following the collapse of the takeover.

Prudential fail in takeover of AIA

BP's continuing failure to stop the massive oil leak in the Gulf of Mexico continues to cost them - their share price today closed down 13%, wiping £12 billion off its stock market value. . The total clean-up costs so far stand at £684m and there are worries that the leak could continue for another 2 months. The BBC's Business Editor said that the cost of the clean up "could wipe out at least an entire year's profit".

BP Share Price Tuesday 1 June 2010

Source: BBC Business

And some positive business news.............

Ryanair is back in profit after suffering its first annual loss this time last year. The budget airline announced pre-tax profits of £289 million for the year to March, benefitting from lower oil prices with fuel 29% lower than last year. It also plans to raise baggage fees from £15 to £20 a bag in July and August.

Ryanair back in profit