PRESS DIGEST - British business - March 4 =9

Xstrata (XTA.L) on Monday reported 13 percent increased annual net profits of $5.54 billion, though it declined to reveal how discussions were progressing with Vale, which wants to acquire it, amid speculation that the demands of the group's largest shareholder, Glencore [GLEN.UL], could scupper a deal. Chief executive Mick Davis said that a merger with Anglo American (AAL.L) was a possibility, while explaining: "What we are trying to do as a management team is to position Xstrata to capture value for shareholders. A Vale transaction would be interesting in that pursuit, as would other transactions, whether we are in a position where Xstrata does the buying or Xstrata does the selling."

Prepared for Reuters by Durrants