Government may sell 40 billion pound student loan book - report

LONDON (Reuters) - The government is considering whether to sell its 40 billion pound student loan book as part of a series of privatisations that includes selling off the Royal Mail Group, the Sunday Times newspaper said.

The government is testing the market with the sale of a 900 million pound tranche of loans, which was announced by Business Secretary Vince Cable on March 26. The newspaper said that the government was now looking at wholesale privatisation.

It said that the sale of the loan book may not raise a significant sum but would slash public debt by removing the loans from the government's balance sheet.

The Student Loans Company, which lends out about 5.5 billion pounds a year, had 28 billion pounds of loans outstanding at the end of March 2012. Senior civil servants say a hike in tuition fees could drive up the total to 40 billion pounds, the newspaper said.

The Department for Business, Innovation & Skills, which oversees the Student Loans Company, declined to comment.

(Reporting by Brenda Goh; Editing by Hugh Lawson)

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Hilco to rescue music retailer HMV in 50 million pound deal - report

(Reuters) - Restructuring specialist Hilco is set to throw British entertainment retailer HMV a lifeline in a 50 million pound deal that will save 2,500 jobs, Sky News reported.

The deal, which could be struck as soon as Friday, will see HMV emerge from administration, Sky News said on its website, with the chain expected to be run by incumbent HMV executives together with newly-appointed Hilco executives.

As part of the deal, Hilco will acquire about 130 HMV stores and all nine outlets operating under the Fopp brand, Sky News said.

Major music companies and film studios, as well as HMV's landlords are understood to be backing the deal, Sky News said.

Hilco has long been seen as the frontrunner to take control of HMV and the restructuring specialist tightened its grip on the company in January, buying up the 92-year-old group's debt soon after it sought creditor protection.

It has also been appointed to help administrators Deloitte run the business during the administration.

HMV's business of selling CDs, DVDs and video games has struggled in declining markets and amid increasing competition from supermarkets and online retailers such as Amazon.Com Inc.

Hilco and Deloitte could not be reached for comment outside regular business hours.

(Reporting by Abhishek Takle in Bangalore; editing by Andrew Hay)

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Syrian forces pound rebel-held areas of Damascus

BEIRUT (AP) — Syrian activists are reporting heavy government shelling and air raids in Damascus and its suburbs.

The Britain-based Syrian Observatory for Human Rights says government troops have shelled the northern neighborhoods of Jobar, Barzeh and Qaboun of the capital. It also reported an air raid Tuesday on the Damascus suburb of Mleiha.

Maath al-Shami, an activist based in the suburb of eastern Ghouta, says there were several airstrikes in the area.

The Observatory also reported heavy shelling of rebel-held areas in the central city of Homs and the northern city of Aleppo, Syria's largest and former commercial center.

The U.N. says more than 70,000 people have been killed since Syria's conflict began in March 2011.

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