PRESS DIGEST - Sunday British Press - March 25

Sun, Mar 25 09:16 AM EDT

LONDON, March 25, (Reuters) - British newspapers reported the following business stories on Sunday:

SUNDAY TIMES

BA EYES RESCUE DEAL FOR TROUBLED AMERICAN AIRLINES

International Airlines Group (IAG), the company that owns British Airways, is examining plans to buy a stake in American Airlines in an effort to stop the carrier falling into the hands of a rival.

IAG Chief Executive Willie Walsh is thought to be studying options including buying a stake in American Airlines, or becoming a minority partner in a joint venture takeover bid.

BP'S 2 BLN STG NORTH SEA SALE

BP has launched its largest ever auction of North Sea oil fields amid a new wave of interest sparked by Britain's tax breaks for the industry.

Assets worth close to 2 billion pounds ($3.2 billion) have been put on the block by the oil giant, according to industry sources. BP has hired Jefferies as an adviser.

In a separate North Sea deal, Kuwait's national oil company is in takeover talks with Ithaca Energy Inc , the 500 million pound producer listed in London and Toronto.

OSBORNE TO NAB ELECTION TAX BONANZA

Britain's Finance Minister George Osborne will net a pre-election tax windfall of 3.3 billion pounds ($5.2 billion) from his cut in the 50 pence tax rate, as high earners delay their income to take advantage of the lower levy.

CO-OP EYES CASH HANDLING UNIT SALE

The Co-Operative Group has hoisted the "for sale" sign over its Sunwin Services cash handling division as it seeks to raise cash to support its acquisition of more than 600 bank branches from Lloyds.

Buckingham Corporate Finance has been appointed to handle the sale, which analysts suggested could fetch 30 to 40 million pounds ($63.5 million).

RBS IN BID TO SAVE GAME

Taxpayers could end up with a stake in Game Group under a surprise rescue plan led by Royal Bank of Scotland Plc .

The state-owned lender is heading a consortium of the company's existing banks that has tabled a bid to buy the troubled computer games retailer out of administration.

888 BETS ON NEW BOSS

Online gaming group 888 Holdings is expected to appoint Brian Mattingley as its chief executive on a permanent basis. He has filled the role since the departure of Gigi Levy, the previous boss.

DEALMAKER TO LIST 2 BLN STG WAR CHEST

Edmund Truell, the veteran private equity dealmaker, is to list a new 2 billion pound ($3.2 billion) bid vehicle on the London Stock Exchange that will target banks, insurers and asset managers across Europe.

Truell is planning to raise between 500 and 600 million pounds of equity from investors, allowing him to target businesses worth up to 2 billion pounds. The yet-to-be-named vehicle is expected to be launched within weeks.

RETAIL PARKS IN 300 MLN STG SELL-OFF

Capital & Regional Plc, one of Britain's biggest owners of shopping centres, is preparing to sell its portfolio of retail parks for more than 300 million pounds ($475.9 million).

CITY DEAL FOR BLACKSTONE

Blackstone is poised to buy the London headquarters of Aon Corp, the world's biggest insurance broker, in a 330 million pound ($523.5 million) deal that will expand the American private equity firm's City property empire.

THE SUNDAY TELEGRAPH

NBNK PLOTS FRESH LLOYDS BRANCH BID

NBNK - the new bank headed by Lord Levene and Gary Hoffman - is to make a fresh approach for the 632 branches being sold by Lloyds Banking Group after concerns were raised that the proposed sale of the branches to The Co-Operative Group had hit regulatory hurdles.

The sweetened 1.5 billion pound ($2.4 billion) offer, due to be tabled on Monday, will propose Lloyds demerge the 632 "Project Verde" branches, float the business and allow NBNK to fully underwrite the demerger in cash.

PRU LEAK: THE FSA IS 'LUDICROUS'

Prudential is facing serious questions over its attitude towards the Financial Services Authority after a leaked email sent by the deputy chief executive of its UK business described the regulator's policy plans as "ludicrous" and "horrendous".

The email also reveals that Prudential and other major insurance companies have met Alex Salmond, Scotland's First Minister, to discuss the impact Scottish independence could have on Britain's insurance firms.

BIRDS EYE'S OWNER PUT ON MARKET FOR 3 BILLION EUROS

IGLO Group, the owner of the Captain Birds Eye frozen food brand, is to be put up for sale with a price tag of almost 3 billion euros ($4 billion).

Europe's largest frozen food company, owned by private equity firm Permira, has appointed Credit Suisse to kick start an auction, which is likely to attract interest from buy-out rivals such as Blackstone, BC Partners and Cinven, as well as East Asian and Indian companies.

STAKE IN THAMES WATER UP FOR SALE

A stake in London water supplier Thames Water, believed to be around 8.7 percent, has been put up for sale for up to 700 million pounds ($1.1 billion).

According to City sources, Australian investment group Macquarie has been conducting an auction of a shareholding in Kemble Water, Thames Water's parent company.

MAIL ON SUNDAY

BETFAIR TO LAUNCH AS A BOOKIE

Online betting exchange Betfair Group Plc is to launch itself as a bookmaker in a move designed to prevent customers deserting to rivals such as William Hill Plc and Ladbrokes.

THE INDEPENDENT ON SUNDAY

SEPTUAGENARIAN SELECTED TO CHAIR 20-YEAR HS2 PROJECT

Britain may announce on Monday the appointment of 71-year old former Crossrail executive chairman Douglas Oakervee as chair of High Speed Two, the 32.7 billion pound ($51.9 billion) rail network linking London, Birmingham and cities further north.

($1 = 0.6304 British pounds)($1 = 0.7540 euros)