PRESS DIGEST-New Zealand newspapers - Feb 26

WELLINGTON, Feb 26 (Reuters) - Following are some of the lead stories from New Zealand metropolitan newspapers on Tuesday.

Stories may be taken from either the paper or Internet editions of the papers.

Reuters has not verified these stories and does not vouch for their accuracy.

DOMINION POST(www.stuff.co.nz)

Clark set to sign deal with China: New Zealand is poised to sign a trade deal with powerhouse economy China, in what is being touted as our biggest trade breakthrough in 25 years.

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Govt moves against staple stock loophole: The Government has fired a shot across the bows of the Canada Pension Plan Investment Board's bid, indicating it will prohibit the type of tax-efficient amalgamation the fund is proposing for Auckland International Airport (AIA.NZ).

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CCHL denies claims it plans port sell-off: The Christchurch City Council's move to lift its stake in Lyttelton Port of Christchurch (LPC) (LPC.NZ) has prompted a claim it may be preparing to sell part of the port into overseas hands.

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Airport bid 'too close to call': The success or failure of the Canada Pension Plan Investment Board's partial bid for Auckland International Airport (AIA.NZ) appears too close to call after an airport recommendation that is likely to confuse small shareholders, observers say.

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ANZ National profit down: ANZ National Bank (ANZ.AX) made an after tax profit of NZ$310 million in the three months to the end of December, down from the NZ$350 million in the previous December quarter which was boosted by a one-off NZ$79 million profit.

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NEW ZEALAND HERALD (www.nzherald.co.nz)

Airport deal not so sweet after tax break blocked: A multi-million-dollar tax break that would have sweetened a Canadian pension fund's bid for control of Auckland International Airport (AIA.NZ) was blocked in a surprise move by the Government last night.