Sir; I wish to raise the item of "bullying by Iceland" first mentioned in your July 1 edition. We have just been invited to a meeting to discuss the "mutual benefits" of the Booker merger. This turned out to be a demand for a price reduction on all products of 2% with no promises or expectation of extra business. We were told this price reduction was to be backdated to May 17 when Mr Walker made his promise to the City of a £50m saving arising from the merger with Booker. It was made clear that this was not negotiable and we had one week to write to confirm our acceptance. As this cash sum is not to be passed on to customers and will be solely used to improve Iceland profits we, along with other suppliers, are being asked to fund Mr Walker's ego trip. As a small/medium manufacturing company, we object most strongly to being threatened in this manner and feel that justification for any takeover or merger has to based not on extortionate demands from small companies but on the generation of synergistic benefits from the new combined group. We await with interest the Competition Commission's view on these matters and the new code of practice that the retailers are supposed to be producing. A struggling SME {{LETTERS }}