Beyond that, I couldn't possibly comment."In other words, it's true. So how does BT feel about it?Howard Hodgson, the long-haired former funeral director and self-styled "flamboyant millionaire Ronson chief executive" was even more immaculately coiffured than usual yesterday.Just as well, since he was previewing Ronson's first range of men's fashion accessories. You will even be able to make real phone calls from them - using the cable network.Ian Hood, director of corporate communications at Telewest is coy about the scheme: "We are looking for opportunities to promote the brand It's no secret that our new corporate colours are green. The Telewest TV-cable company is scouring the world to buy up any remaining boxes so that they can bring them back to the UK and paint them in Telewest's corporate green. The green-ified booths will be set up as a marketing tool wherever Telewest has a concentration of cable users. Good news for fans of the traditional red telephone boxes which were abolished by BT: they're coming back Except this time they'll be green.

In the US, higher selling prices offset lower volumes of cigarettes, while the continuing increase in smoking in the Far East saw profits there rise 14 per cent. BAT accounts for almost a quarter of all foreign cigarettes sold in Japan.Commenting on a recent upsurge in anti-tobacco industry litigation, Lord Cairns, chairman, said: "Despite the tobacco industry's attempt to get science back into the debate, the climate of opinion remains extremely hostile in the US ahead of the presidential election."He claimed three important legal victories, however, in the long-running feud between the anti-smoking lobby and the tobacco giants - a class action against the company in the US, a Medicaid reimbursement dispute in Florida, and in the UK the refusal of the Legal Aid Board to grant funding to litigants in tobacco cases.. Eagle Star's first-half profit slipped to pounds 108m (pounds 113m) while Allied Dunbar's profits fell 9 per cent to pounds 96m.Those poor results could not prevent a 12 per cent rise in group pre- tax profits to pounds 1.33bn for the six months to June as one-off business disposals, recovery in US insurance and steady growth in cigarette sales, especially in Asia, made up for the disappointments in UK financial services. It is estimated that sharing computer and other support services could save Bafs pounds 50m a year.The consolidation is also expected to help the division target overseas markets. "To become a world-beater we must succeed beyond the white cliffs of Dover.

Asia will be a top development priority," Mr Leitch said.Bafs already has a presence in Hong Kong and Taiwan and expects to be granted licences in India and China within the next two years.The need to expand overseas was underlined by interim figures showing a reduction in life and investment profits offsetting better general insurance returns. BAT yesterday promised faster-than-expected growth in its financial services businesses after the consolidation of its asset management, general and life insurance operations into one division. Sandy Leitch, chief executive of the newly formed British American Financial Services arm, said the division had targeted an extra 20 per cent growth above previous expectations over the next five years. Bafs, which brings together Eagle Star, Allied Dunbar and Threadneedle Asset Management, was created recently to give the financial operations greater coherence and to create cost-cutting opportunities. Mr Robins cheered the UK stock market by reporting signs of a rates recovery in premiums, especially in the motor market."I don't believe there is going to be a price-war in household rates," he said.

Household premiums have fallen 8 per cent in a year.Following the creation ofRoyal & Sun Alliance, GRE itself has become the target of widespread takeover speculation, but Mr Robins said: "I don't believe in that sort of merger. You have to be able to manage the inevitable culture-clashes of two companies that have been building similar businesses over 150 years, at a time of considerable industry strain and change." There had been no bid discussions over GRE, he added.Meanwhile, Nationwide has switched its annual pounds 100m business in buildings and contents insurance from a group that included GRE, to a cheaper alternative from ITT London & Edinburgh.Investment Column, page 20. We have turned down two to three that did not meet our criteria." GRE is looking for a specialist insurer of higher risk drivers to add to its existing subsidiary in the US, and an agency broker in property and casualty insurance. The company has been in talks with several potential targets.Mr Robins said: "I hope to have something in the next six months. The company said it was not, however, planning involuntary redundancies.Meanwhile, GRE expects to spend $500m (pounds 320m) on one - or more likely two - US acquisitions in the next six months, according to John Robins, the chief executive. In a renewed efficiency programme, another 300 will go from its force of 6,000 UK staff. The reductions are the first in a programme expected to reduce the UK insurance workforce by 4,000 in the wake of the pounds 5.4bn merger just completed.