Monday Papers: Santander will be allowed to bid for RBS branches -- bid news and gossip

* Lloyds will tomorrow unveil twin sweeteners to persuade existing bondholders to exchange their bonds for riskier investments that could convert into equity

* Royal Bank of Scotland may have to accept significant cutbacks in its investment banking division if the bank stands by its desire to keep US retail banks Citizens -- Telegraph

* Santander will be allowed to bid for Royal Bank of Scotland's 312-strong business-focused branches under competition rules agreed between London and Brussels

* Cable & Wireless will use its first-half results on Thursday to revive plans of a demerger of its UK and International businesses

* Kraft set for strong results as it considers £10 billion-plus offer for Cadbury

* Lufthansa pulls BMI sale after price fails to attract buyers

* Tyrus Capital, the hedge fund, has raised over £486 million from investors

* Aureos Capital plans fund for South East Asia

* Chairman of UBS fund management arm ends talk of sale

* Credit Suisse chief sees acquisition opportunities

* Rivals jostle for position in expectation of KBC Peel Hunt sale

* South Korean pension fund invests in two landmark offices for over £265 million