UPDATE 1-Market Chatter -- Corporate finance press digest

LONDON, Jan 2 (Reuters) - The following corporate finance-related stories involving U.S. and European companies were reported by media on Wednesday:

** Spanish lender Grupo Santander (SAN.MC) broke off negotiations with British mortgage bank Alliance & Leicester ALLL.L after a weekend of intense talks in mid-December, but Santander has not ruled out making an improved offer, the Financial Times cited people close to Santander as saying.

A&L has been hit by concerns it faces a financing crunch. In November it said it would take a 55 million pound ($110 million) hit from losses at its Treasury investments.

** The Kuwait Investment Authority, which is managing $213 billion worth of sovereign wealth fund, is screening bargain investments, including financial companies, in the United States in the wake of the subprime mortgage crisis, Bader Al-Saad, head of the KIA told the Financial Times in an interview.

** Russia's Peter Hambro Mining PLC (POG.L), the third largest company listed on London's Alternative Investment Market, plans to move to the main board in the second half of this year after the successful move of Russian miner Aricom PLC OREA.L made the transition in the autumn, the Daily Telegraph reported. (Reporting by Daisy Ku; editing by Rory Channing)