The Competition Commission has given the green light for Euronext and Deutsche B? to proceed with their takeover proposals for the London Stock Exchange, but has imposed major preconditions which reduce the chances of a takeover bid being made. Unveiling its final findings after a seven-month investigation, the watchdog said both continental suitors must take steps to limit their control over clearing-house activities. Euronext, seen as the front-runner, has been told it must slash its holding in LCH.Clearnet, the business that clears share trading for itself and the LSE, from 41.5 per cent to 14.9 per cent.. Gareth Davis, the chief executive of Imperial Tobacco, said he was "not happy at all" about the Government's smoking ban proposals but added that the effect would be minimal in the long run.

His comments came after the world's fourth-biggest tobacco company posted an 11 per cent rise in annual profits and announced it would spend up to £450m on buying back shares in the absence of major acquisitions. The UK-based group, with leading brands such as Lambert & Butler, Richmond and Davidoff cigarettes, said volumes grew 1.5 per cent over the year after a strong second-half performance outweighed a first-half drop. It reported pre-tax profits of £1.1bn for the year to 30 September, near the top end of analysts' forecasts. Mr Davis deplored government plans to introduce smoking bans in offices, restaurants and pubs serving food in England and Wales by the summer of 2007. Speaking in London as the roadshow began for EDF's €7bn (£5bn) share offer later this month, M. Gadonneix said he would "certainly" be interested in financing, constructing and operating new reactors.

But he added that it was a sensitive topic and the UK government would first have to secure public support for a new nuclear programme. "We are keen to co-operate in making government and public acceptance as wide as possible," M. Gadonneix added. EDF's head of UK operations, Vincent de Rivaz, is due to set out the French company's proposals in more detail when he gives evidence today before the Commons environmental audit committee M. The Belgian company argued in the lawsuit that these "representations of GSI [Goldman Sachs International].. became false before completion of the transaction... but GSI negligently failed to inform IFE of these matters".A spokesman for Goldman said: "This claim has no merit and we will contest it vigorously.". The state-owned French power company Electricit?e France would be keen to build a new generation of nuclear power stations in the UK if Tony Blair gives the go-ahead to such a programme, its chief executive Pierre Gadonneix said yesterday. Goldman Sachs is being sued by a Belgian investment group over a £158m fund-raising arranged by the investment bank for a collapsed British car parts distributor.