PRESS DIGEST - British business - May 6

The Times

BARRATT SAYS NO TO OFFER BY APOLLO TO BUY STAKE

Apollo is understood to have approached Barratt Developments (BDEV.L) to offer to buy a stake in the troubled UK housebuilder. The American private equity group is believed to have offered to inject between 300 million pounds and 400 million pounds into Barratt at a small premium to the current share price. Analysts have previously warned that Barratt, which is understood to have rejected the offer, will have to conduct an emergency rights issue to raise cash as the pressure of its debts burden takes its toll.

MANCHESTER AIRPORTS GROUP INTERESTED IN GATWICK

The UK's second-biggest airports operator, Manchester Airports Group, has announced it would be interested in buying Gatwick if Ferrovial FER.MC, the Spanish owner of operator BAA, is forced to sell. According to industry experts, the price tag for Gatwick could be around two billion pounds.

NOW LLOYD'S BROKERS LOOK TO RELOCATE ABROAD

Brit Insurance, one of the most prominent players in Lloyd's insurance market, is considering shifting its headquarters outside the UK. It is the latest in a string of City businesses angered by unpopular tax proposals from the Treasury. The reinsurance broker is valued at 800 million pounds in London, and is currently investigating whether jurisdictions such as Geneva or Dublin are more tax-efficient than the UK.

The Daily Telegraph

EDF IS CLEAR FAVOURITE FOR UK NUCLEAR BID

The bid battle for British Energy BGY.L looks to be turning into a one horse race, with EDF (EDF.PA) seen as the clear frontrunner to table an offer ahead of this week's deadline. Centrica (CNA.L) still has hopes of teaming up with EDF or RWE (RWEG.DE), but a consortium bid is looking increasingly unlikely. A source close to the BE sale process said: "As things stand right now, I think EDF will bid low knowing that it could well be the only offer on the table. Centrica brings nothing to the party. It has no expertise in nuclear."

SPECIALIST CARE HOMES FIRM MAY CHANGE HANDS

One of Britain's biggest providers of specialist residential care homes, Tracscare, could be about to change hands for an enterprise value of about 200 million pounds. Sovereign Capital has appointed advisers at Deloitte to carry out a strategic review of the business. Sources suggest Hg Capital and Three Delta could both be interested in acquiring Tracscare.

VIRGIN ACTIVE EARNINGS BEEF UP BY 28 PERCENT

Virgin Active saw earnings increase by 28 percent over the year to December 31. Sales at the company also rose by four percent to 313.5 million pounds over the period, and its chief executive Matthew Bucknall said the year had been one of "significant progress". Bucknall said: "The current year has started well with first-quarter trading in all territories positive on a like-for-like basis." Sir Richard Branson owns 75 percent of Virgin Active, and is thought to value it at more than one billion pounds.

The Independent

WPP MIGHT MOVE HQ OVERSEAS OVER TAX

Sir Martin Sorrell, chief executive of WPP (WPP.L), the world's second-biggest advertising company, has repeated it will consider moving its London headquarters overseas if the government proceeds with proposed changes to corporate taxation. He said: "We are talking about very, very significant sums of money." The new rules will result in companies paying tax on any overseas earnings.

CATTLES OUTSOURCES TAKING OF PROFITS

Cattles (CTT.L) is in negotiations to outsource processing for its planned deposit-taking operation. The company is talking to the Newcastle, Skipton and Yorkshire building societies about using their systems and staff to administer the deposits. The sub-prime lender wants to raise around one billion pounds from retail savings by the end of 2010 to gain cheaper funding.

FOCUS ON LLOYDS TSB'S CAPITAL STRENGTH

Lloyds TSB (LLOY.L) is due to publish an interim management statement on Tuesday, and the market is likely to focus on the bank's capital strength because of recent rights issues by HBOS HBOS.L and Royal Bank of Scotland (RBS.L). An analyst at Collins Stewart said that although Lloyds TSB's stock had been a strong relative performer on the basis of a strong capital base and a good funding position, the bank "would be keenly exposed" to a UK recession, and so "a capital raise, whilst not explicitly necessary, cannot be ruled out".

The Guardian

SORRELL HARRIES TNS AFTER IT REJECTS HIS ONE BILLION POUND SPOILER

WPP (WPP.L), Sir Martin Sorrell's advertising company, is pushing for more information on Taylor Nelson Sofres TNS.L after its initial unsolicited offer of around one billion pounds for the market research company was rejected. Last weekend, WPP approached TNS with a cash and shares offer that valued the company's shares at 230 pence. Donald Brydon, TNS chairman, said: "The board has no hesitation in rejecting this opportunistic proposal as it substantially undervalues the company even on a standalone basis."

FRENCH RAILWAY BUYS BRITISH BAGUETTES

Fosters, a Yorkshire-based bakery, has stepped up Britain's assault on French cookery by beginning to export truck loads of baguettes across the channel. The company has used a legal loophole to beat local boulangers to a contract supplying the loaves to the whole of the French railway system. French local law forbids the use of the fat needed to preserve the bread efficiently. However, competitors from elsewhere in the EU are able to sidestep the ban.

MEPS TO VOTE TO OPEN UP EU ENERGY MARKET

MEPs are expected to endorse controversial plans on Tuesday to force huge mainland European energy groups to sell off their power transmission networks and open the EU market to greater competition. The vote will be crucial to British and Spanish groups such as Centrica (CNA.L) and Iberdrola (IBE.MC), which have seen their ambitions to break into other markets thwarted by the dominance of "national champions".

Prepared for Reuters by Durrants