Observer

Insurance companies and analysts are warning that there could be further cuts in bonuses and payouts on with-profits investments this year despite the stock market recovery.

America’s Home Depot , the world’s largest DIY retailer, is considering a pounds 8bn bid for Kingfisher, owner of B&Q in the UK and Castorama in France, according to Wall Street investment bankers.

Sunday Telegraph

The UK economy will grow by 2.8% in 2004, according to the Ernst & Young Item Club which uses the Treasury’s forecasting model. The Treasury is predic ting 3%-3.5% growth.

Bill Grimsey, chief executive of Big Food , has attacked Musgrave, the company’s main rival in the bidding war for convenience store group Londis , for its supposed lack of national coverage and capacity problems.

Sunday Times

Nursery chain Leapfrog is planning once again to try to bounce on to the stock market with a pounds 70m flotation. It abandoned an earlier attempt in May 2002.

The Financial Services Authority has intensified its inquiry into potential abuses by hedge funds and other sophisticated investors operating with unit trusts.

The Business

Old Mutual, the London-listed South African insurer, has approached several leading international banks to sell its majority stake in Nedcor , one of the country’s biggest lenders, in a deal worth up to pounds 2bn.

Rhodia , the French chemicals group, is to sell three business units under a euros 700m disposal programme agreed in a refinancing with its banks.

Mail on Sunday

BSkyB is preparing a boardroom shakeup to appease shareholders over the appointment of James Murdoch as chief executive of the satellite broadcaster.

Directors at pubs and brewing group Wolverhampton & Dudley won pay rises averaging 25% last year despite presiding over flat profits.

IoS

Elliott Bernerd, chairman of Chelsfield , is close to offering almost pounds 900m to take the property company private.