Other Forte shareholders are certain to find the idea that an institution with less than one per cent of the shares is in a position to overrule their collective power completely unacceptable. Unfortunately for them it can, and unless Granada comes up with a very substantial premium for the Council's shares, it fully intends to. So far the stock market appears not fully to have appreciated this. Plainly, the Council's position is a ridiculous and indefensible one. What this means is that if Lord Callaghan and his colleagues on the Council decide not to sell to Granada, the bid is finished regardless of the views of other shareholders. There is, it is understood, no possibility of the Council standing aside and allowing other shareholders to decide, as happened in the last assault on Forte.

That august body, the Council of Forte, may, after all, be forced to determine the outcome of the bitter pounds 3.2bn battle for control of Forte. After taking advice, tested in the courts, the Council finds itself in the uncomfortable position of having to exercise archaic powers which give its tiny fraction of the company's capital more than 50 per cent of the voting rights. It would be surprising if someone is not looking at a number of options and then moving on. But we are under no pressure to do anything by way of looking at our new business."Mr Crosby added that since Halifax Life was launched 12 months ago business had improved significantly after a poor first six months.Among firms said to be ripe for a takeover bid by Halifax are Provident Mutual and NPI, both large mutual companies based in England.. Following the merger with Leeds Life in August, it now has about 150,000 policyholders.Experts believe that taking over another life insurer would allow Halifax to cut back-office costs quickly for both parties instead of waiting to build up its own business over several years.It would also give it an entry into the lucrative independent financial advice distribution channel, which recent surveys show is among the most productive in sales terms.James Crosby, managing director of Halifax Financial Services, said: "We know there is a lot going on out there and there are a lot of opportunities for organisations like ourselves."I would simply say that from time to time we will look at [those opportunities].

NIC CICUTTI Halifax Building Society is believed to be holding talks with a large mutual life company in a takeover bid aimed at boosting its market share in the financial services sector. Industry sources say that the society, which is to become a bank next year following its recent merger with Leeds Permanent, has examined several potential companies in Scotland and England.Halifax already has a financial services arm, covering both life products and unit trusts. The news triggered jubilation at the Maryknoll Fathers mission in Ossining, New York."It's almost as if we wrote the SEC's ruling outselves and obviously we're very happy," said the Reverend Joseph La Mar.RJR Nabisco, which claims that pending legal problems related to the tobacco business make an early spin-off unadvisable, has already indicated that it will no longer challenge the brothers' inititiative.The company has not quite been able to resist taking a shot at them, however."The fathers want an excuse to rail against the tobacco business," a spokesman sneered in a statement published by the New York Times yesterday.. While the LeBow-Icahn resolution would require an absolute majority of all shareholders for passage, the clergy's needs only a majority of shares actually voted.And while RJR Nabisco has not flinched from hurling vitriol at Mr Icahn and MrLeBow - accusing them of conspiring eventually to take over the whole company - taking on the clergy in public may be more problematic.Both groups of clergy are motivated by a conscientious objection to the association of Nabisco foods with the tobacco industry and the health problems related to it.The resolution calling for the split is being put forward by the Maryknoll Fathers in New York, together with the Glenmary Home Mission based in Cincinnati, Ohio.The SEC's decision to allow the resolution, came in response to a request by RJR Nabisco to have it blocked. It also expects strong sales for Total NBA, a new basketball game to be launched in the Spring.. DAVID USBORNE New York The odds that RJR Nabisco may be forced by its shareholders into an early spin-off of its food division have shortened significantly thanks to the persistence of an unlikely foe: the Roman Catholic church.Specifically, two groups of clergy have been given formal clearance by the Securities and Exchange Commission (SEC) to submit a resolution to the company's next general meeting in April, demanding the immediate separation of its food and tobacco interests.By their action, the clergy have found themselves in alliance with two rather better-known corporate figures also pressing for the break-up of RJR Nabisco.Carl Icahn and Bennett LeBow earlier this week launched a consent solicitation seeking backing from other shareholders.Together Mr LeBow, a Florida financier, and Mr Icahn hold 13 million shares in RJR Nabisco and could represent a serious threat to the company's management, which contends that it is aiming at a spin-off of the Nabisco division in the future, but not before 1997.As well as seeking support for a spin-off resolution, the pair are also plotting to put in place a new board.The clergy, by contrast, have only 980 shares in the company between them.Their action may prove the more potent, however. January is traditionally a strong month for software sales, as consumers buy titles to go with consoles they received as Christmas gifts.Sony says its best selling games are Tekken, Ridge Racer and Fifa '96, with Mortal Kombat also selling well. Both companies say that new-generation 32-bit systems have already generated strong sales of software games, with Sony saying it was selling four games for every console.

Sony has set aside a budget of pounds 20m for its PlayStation campaign. The PlayStation sold 35,000 units in December while Sega racked up sales of 25,000 , according to figures supplied by the two companies. Since the new-generation game systems were launched last year, Sony claims sales of 135,000 while Sega puts its total at 80,000.Jeremy Crisp, of Sega's marketing department, said: "We are delighted with the figures, and the early indications for January are also excellent."He added that the Saturn managed to generate its sales by spending far less than Sony on TV and other advertising. NIGEL COPE and MATHEW HORSMAN Sony is claiming victory over its arch-rival Sega in the Christmas computer games battle, as speculation grows that Nintendo is unlikely to launch its new console in Europe until 1997. Nintendo has already delayed the launch of its Ultra 64 system several times and another delay would put it even further behind in the cut-throat electronic games market which is worth pounds 2bn worldwide.Nintendo refused to confirm the setback yesterday, saying: "As far as we are concerned in the UK, the machine is still planned for a 1996 launch." The company's UK distributor, Total Home Entertainment, says it expects the new console to be launched in September.In the key Christmas period, the Sony PlayStation appears to have won the battle of the consoles with the Sega Saturn. One solution mooted is that other gas suppliers should help to pay through a levy on the use of the pipelines, but the GCC argues that ultimately this too would hurt consumers.Ian Powe, director of the GCC, said: "Whoever is at fault it is not customers." Mr Powe said he had no desire to see British Gas "go to the wall" but that the Trade and Industry Committee could at least ensure that all the issues were fully and fairly aired."Until we are given all the facts we must resist any notion that consumers should pay," he said..

British Gas said that it would co-operate fully in any inquiry.The issue exploded at the end of last year when Clare Spottiswoode, the industry watchdog, warned that the problem could pose a threat to British Gas's financial security.She is currently considering whether some of the cost of the contracts should be passed through to consumers through the domestic price control formula.British Gas has appealed for government support in renegotiating the contracts or in finding some other solution to its predicament.The company argues that the contracts were entered into when it had a monopoly in the supply of gas and that the Government, by opening up the market, should take part of the blame. Martin O'Neill, the chairman of the committee, confirmed that the issue would be discussed at a meeting next week. The report said the desire to reduce stock levels might explain the small deterioration in order books. Prices paid for materials fell significantly, pointing to lower inflation at the factory gate in the coming months. There was clear evidence that remaining supply bottlenecks eased.