UPDATE 1-Market Chatter -- Corporate finance press digest

(Adds Kraft, Infogroup and Centerline)

BANGALORE, March 8 (Reuters) - The following corporate finance-related stories were reported by media on Monday:

* Kraft Foods Inc (KFT.N) is being investigated by UK regulators on whether the company misled employees and investors in its battle to take over British firm Cadbury, the Wall Street Journal said, citing people familiar with the matter. [ID:nSGE62705Y]

* Prudential Plc (PRU.L) CEO Tidjane Thiam will attempt to charm leading shareholders on Monday, moving to quell disquiet over the British insurer's $35.5 billion bid for AIA, the Asian arm of American International Group (AIG.N), the Financial Times reported on its website. [ID:nSGE625003]

* The attempted sale of 320 Royal Bank of Scotland (RBS.L) branches could be scuppered by a severe funding gap, according to a report in the Sunday Times. [ID:nLDE6260FQ]

* The remains of HBOS's (HALp.L) investment portfolio could be sold this week with private equity group Coller Capital believed to be in pole position to buy what is left, reported the Sunday Times. [ID:nLDE6260F0]

* Indian conglomerate Essar Group is working towards an $8 billion listing of its oil and power businesses in London, according to a report in Britain's Sunday Telegraph newspaper. [ID:nLDE6260DF]

* Germany's Merck KGaA (MRCG.DE) is eyeing further acquisitions following its agreed $6 billion cash purchase of U.S. biotech tool maker Millipore (MIL.N), Merck's chief executive told a German newspaper. [ID:nLDE6260A9]

* Private equity firm CCMP Capital has agreed to buy data and marketing services company Infogroup Inc IUSA.O for about $460 million, the Wall Street Journal said, citing people familiar with the situation. [ID:nSGE62708H]

* U.S. real estate investor Andrew Farkas is all set to buy Centerline Holding Co, a provider of real estate financial and asset management services, by investing $100 million in equity in the company, the Wall Street Journal said. [ID:nSGE627068]

* British property and transport firm the Peel Group is in talks to sell a stake in its airports unit to fund a joint-bid for Britain's only listed ports company, Forth Ports FPT.L, according to the Mail on Sunday. [ID:nLDE62608F]

* Petroleum company Royal Dutch Shell (RDSa.L) has made a takeover offer for Australian energy company Arrow Energy AOE.AX, the Australian Financial Review reported on Monday. [ID:nSGE626026]

(Compiled by Purwa Naveen Raman in Bangalore)