What the Sunday papers said

A leading US hotel and property group is believed to be interested in launching a £3bn bid for Whitbread. Starwood Capital, which is understood to be in talks with advisers including JP Morgan, is highly acquisitive and has long been seen as a suitor for the UK company because of its experience running France's biggest budget hotel chain, Societe du Louvre. It also owns hotel brands such as Westin and Sheraton. Last week Whitbread sold 235 of its non-core pub restaurants to Mitchells & Butlers for £497m. - Mail On Sunday​

Tony Blair's flagship identity cards scheme is in crisis, according to a confidential Home Office report seen by the Sunday Times. The 32 page 'restricted' document says the security system protecting the card and the national database could be infiltrated by criminal gangs involved in identity theft. The report also highlights shrinking public support for the scheme. - Sunday Times​

Accountants KPMG, administrators to collapsed off-licence chain Unwins, has confirmed it is preparing legal action against Devereux Montague, the chain's former private equity owner. KPMG says it is preparing action connected with the fact that Unwins' warehouses were almost empty when it went into administration last December. - Sunday Express​

Fighting talk from PepsiCo about its trading performance and acquisition plans in France is good news for shareholders in Danone, a possible target for the US soft drinks giant. Improved sales growth at PepsiCo's French operations together with bid interest, suggests Danone's shares are at a premium. The company saw off one bid effort, but may succumb a second time. Other shares, such as Nestle, Cadbury Schweppes and Unilever, may offer better value. - The Business​