What the Sunday papers said

Observer

• Spirit has offered £2.6 billion for Scottish & Newcastle Retail's 1400-strong pub estate, putting it in a strong position to win the bidding contest, the result of which should be known this week. However, a rival bid from Laurel Pub Company is only £500,000 less and City observers caution that the outcome could still swing either way.

Sunday Times​

• Tony Blair is to block plans to introduce a ban on smoking in public places. The prime minister has been warned that he risks alienating around a third of the electorate who smoke, and believes that voluntary measures by business are the best approach.

The Sunday Telegraph​

• Diageo and Allied Domecq, the world's biggest drinks companies, are each planning alliances and possible mergers with their largest international rivals. Allied says a deal with Bacardi could generate savings of £200m, while Diageo wants to forge closer ties with Heineken.

The Business​

• The EC is set rule against BskyB's £1.024bn deal with the Premier League, and demand that the bidding process for live rights to TV matches should be restarted.

Independent on Sunday​

• SABMiller is considering dropping the Nastro Azzurro brand in the UK and US in favour of core brand Peroni. It also wants to position Peroni as a premium imported lager to be drunk in bars and pubs, and not just with a pizza.

Allied Domecq will launch a £61m counterbid this week for Australian wine producer Peter Lehmann Wines. The UK group already owns 14.5 per cent of Peter Lehmann, which has agreed a takeover Swiss rival Hess. Click here to read more on thePublican.com.

The Sunday Express​

• French wine producers are hiring Australian experts to make New World-style wines to appeal to UK buyers. The French Wine Export Association hopes it will increase flagging sales.

In a special report tied in with the publication of the Government's alcohol strategy, the Express claims Britain's taste for booze is getting out of control, with more than three million people dependant on alcohol.

Financial Times (weekend edition)​

• The cost of the failed attempt to acquire Six Continents by Hugh Osmond's company Capital Management and Investements has been revealed. The company has unveiled pre-tax losses of £7.26m for the six months to the end of July.