Sunday Papers: Telefonica gives up bid for Brazilian Vivo - bid news and gossip

The Sunday Telegraph

* Telefonica, the owner of O2, has abandoned its €7bn attempt to take full control of Brazilian mobile phone operator Vivo, after failing to reach a deal with Portugal Telecom.

* The directors of Ocado were warned by their own bankers, Goldman Sachs and JP Morgan Cazenove, that offering shares to its own retail customers was a mistake that could undermine the planned initial public offering.

* The Government is to demand a radical shake-up in bank lending to small and medium-sized businesses after complaints that a lack of competition meant banks were too often in the driving seat when it came to supplying credit.

The Observer

* Charge for access to website sees The Time's online audience fall to 33% of its previous size – better than many had expected.

* British banks with big City operations have amassed pay and bonus pools of more than £5bn in the first six months of the year.

* Ocado insists £1bn float is on track as investor deadline looms; online supermarket said to have held successful meetings with potential US backers.

The Independent on Sunday

* The big four accountant KPMG is expected to give the all-clear this week to plans by state-controlled conglomerate Dubai World to repay the $14.4bn it owes banks.

* Goldman Sachs will pay the remaining legal costs of Fabrice Tourre, the trader at the centre of the Securities and Exchange Commission's $1bn fraud investigation, despite settling its own role out-of-court.

* Aviva Investors and Exemplar Properties have teamed up with the committee managing the assets of Iceland's failed Kaupthing Bank to develop a £750m scheme at "Noho Square" in London's Fitzrovia.