PRESS DIGEST - British business - March 28

The Times

POOR SALES IN CHINA DRAG DOWN KINGFISHER

Ian Cheshire, new chief executive of Kingfisher (KGF.L), said the group may need to close stores and reduce its workforce in China after seeing its B&Q business grind to halt in the world's fastest growing economy. Cheshire said talks had already begun with local Chinese government officials about a restructuring plan. He said: "Not many multinationals have made straight-line progress in China. We have grown incredibly fast and now just need to consolidate."

ROYAL MAIL IS FAILING TO MEET ITS CHALLENGES, SAYS POSTCOMM

Postcomm has said Royal Mail [GBPO.UL] is failing to invest properly, is too inefficient and is not developing sufficient new products. The industry regulator made the criticisms in response to a government review of the impact that competition has had on the state postal group. The chairman of Postcomm, Nigel Stapleton, said: "Royal Mail's problems are a lot more deep-rooted than having to deal with modest amounts of mail competition and regulation."

M&B CONSIDERS STRIKING DEAL WITH GEORGICA

Mitchells & Butlers (MAB.L) is considering an approach to Britain's largest tenpin bowling operator, Georgica GGA.L, amid signs that a takeover of the pub and restaurant group could be faltering. Citigroup is handling a strategic review that will look at an outright or partial sale of M&B, although the credit crunch has decreased the chance of a competitive auction.

The Daily Telegraph

CENTRICA MULLS 300 MILLION POUND GAS STORAGE INVESTMENT

Centrica (CNA.L), owner of British Gas, is considering an investment of around 325 million pounds to create the UK's first offshore gas storage facility for more than 25 years. The company has joined Gaz de France GAZ.PA and First Oil to study the feasibility of converting the Bains gas field in the Irish Sea into a storage site. Centrica's chief executive, Sam Laidlaw, said: "We believe Bains has real potential as a new gas storage facility, being close to existing infrastructure and having the right reservoir characteristics."

SONGBIRD SEEKS TO SPREAD WINGS

The company that owns 61 percent of Canary Wharf Group, Songbird Estates (SBDb.L), said it "was looking very closely" at a couple of assets outside its London Docklands heartland despite profits being hit by a collapse in commercial property values. John Garwood, Songbird's company secretary, said despite recent turmoil in the financial markets, rents and tenant demand were holding up.

NORTHERN FOODS UPBEAT ON PROFITS

Northern Foods (NFDS.L) said sales growth quickened in the fourth quarter and forecast that annual profit will beat analyst estimates as it was able to offset higher food costs by raising prices. The UK maker of Goodfella's frozen pizzas and Fox's Biscuits said its underlying revenue growth in the year to March 29 would be 3.2 percent, with prices up 2.4 percent and volumes up 0.8 percent. Stefan Barden, chief executive, is confident of "steady progress".

The Independent

INM SAYS "DISSIDENT SHAREHOLDER" IS TRYING TO DESTABILISE COMPANY