Crunchie to Crème Egg chocolate maker, Cadbury, will tomorrow unveil its formal defence document, spelling out why the future is so creamy that it doesn't need Kraft Food's £10bn hostile takeover bid which has caused a furious response. Chairman Roger Carr and chief executive Todd Stitzer are expected to say that trading is so upbeat that Kraft's offer undervalues the company and that its own valuation is much higher than the current bid, says the Independent on Sunday.The Sunday Telegraph adds that Cadbury and Hershey have held private discussions about plans for the American confectionary giant to launch a non-hostile bid that would be recommended by the management and board.The president of Barclays, Bob Diamond, has revealed that the bank will defer up to 60% of its bonuses this year as it attempts the "change the narrative" on the financial crisis away from pay and on to the retention of strong performing banks in London. In a wide-ranging interview with The Sunday Telegraph, Mr Diamond admitted that banks had made mistakes in the past, said that bonuses had to be better controlled with more remuneration paid in fixed income.Banks, fund managers, stockbrokers, lawyers, accountants and just about everyone plying their trade in the City of London will tomorrow look for clarification over rules on the taxing of bonuses after days of confusion since the pre-Budget report (PRB). Her Majesty's Revenue and Customs (HMRC) is expected to explain key details of the 50 per cent levy on "bank" bonus payments of £25,000 or more to 'relevant banking employees,' reports the Independent on Sunday.The Sunday Times adds that officials from New York, Hong Kong and Switzerland have launched a charm offensive to lure lucrative investment banking business away from London. Several large banks have started to draft plans to divert business away from the capital to rival international centres.Iraq is on course to overtake Iran as the holder of the world's second-largest proven oil reserves, solidifying its position as the energy industry's new frontier in the scramble to secure fresh resources. Baghdad agreed on Friday to deals with Shell and China's CNPC for two large oilfields, following on from similar accords with ExxonMobil, Eni and BP. On Saturday, Lukoil sealed a deal on the West Qurna field, writes the FT.Hugh Osmond, the pizza-to-pubs entreperenur, is back. Months after selling out of insurer Pearl, Mr Osmond is seeking to raise £500m for an investment vehicle aimed at acquiring distressed companies and funds in the consumer sector. The vehicle - called Horizon - will seek to raise the capital through an IPO on the London Stock Exchange. Mr Osmond said he will focus on "consumer-facing businesses, life insurance excluded", reports the Sunday Telegraph.Partygaming, the online poker group, is in merger talks with Bwin, an Austrian rival, in a deal that could create a £2 billion internet gambling giant, according to the Sunday Times.Rolls-Royce's development of an engine for America's new Joint Strike Fighter (JSF) aircraft has hit more problems, fuelling a campaign by President Barack Obama's administration to remove the UK company from the $300bn (£180bn)project. It appears that Rolls-Royce must redesign a key component, which critics claim is the latest in a string of failings that will increase costs and delay the introduction of the world's most high-tech jet, says the Independent on Sunday.Mouchel, an outsourcing and engineering group whose shares jumped nearly 20% on Friday, has received two secret takeover approaches. The rival VT Group is understood to have made both informal offers in recent weeks, only to be rebuffed by Mouchel's board, led by its chairman, Bo Lerenius. Serco and Capita, two other outsourcing groups, are said to be waiting in the wings if a formal bid materialises, reports the Sunday Times.In an unprecedented assault on the music download market, Tesco will sell the song - which is widely tipped to be Christmas number one - as an MP3 file for 29p, less than half the price of a normal single. Individual singles usually sell on Tesco's website for between 67p and 87p. Tesco's price cut will heap pressure on Apple's iTunes, which sells tracks for 79p, writes the Sunday Telegraph.Rents for commercial properties have soared to such an extent in select parts of London that landlords are demanding nearly £1,000 per square foot for sections of top-tier shops on the exclusive Old Bond Street, according to the Independent on Sunday.Transport for London (TfL) has drawn up a series of options to end the Underground public-private partnership and take over the sole remaining contractor, Tube Lines, which faces a crunch decision on its finances this week, says the Sunday Telegraph.Lawyers representing Scottish Widows, the Lloyds Banking Group-owned insurer, will on Thursday make their final arguments in Edinburgh's Court of Session in a hearing that could potentially cost the group hundreds of millions in compensation payouts. The case has been brought by the Actuarial Review Company, which alleges Scottish Widows was negligent in giving advice to pension fund members, writes the Independent on Sunday.Globespan, Scotland's biggest airline, faces a "crunch-time" funding deadline tomorrow, which is likely to decide the fate of the company. It's believed that Globespan, which was spared administration at the 11th hour last month, is still awaiting payments from Halcyon Investments, a Jersey-based special purpose vehicle, reports the Independent on Sunday.The ownership of Habitat changed hands this weekend after its Swedish parent company agreed to inject a €50m (£45m) dowry to rid itself of the loss-making furniture chain, according to the Sunday Times.Carnival, the world's largest luxury cruise ship operator, is expected to announce buoyant full-year results on Thursday with its premium brand, Cunard, keeping its bottom line afloat, says the Independent on Sunday.The Serious Fraud Office is preparing to launch a formal investigation into Kaupthing, the failed Icelandic bank, amid suspicions that it may have been involved in criminal activity, writes the Sunday Telegraph.Officials in the Treasury are already preparing plans for much sharper cuts in public spending in the event of the Conservatives coming to power, according to Whitehall sources, reports the Independent on Sunday.
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