We'll fight 2012 bid say arena site firms

London's Olympic bid suffered another blow today when businesses on the arena site said they wanted the Games to go to Paris.

The companies said they were taking the "extremely regrettable" step of withdrawing support for the 2012 bid.

Dozens of companies on the Marshgate Lane estate in Stratford say they are not being offered fair compensation for their land by Ken Livingstone ' s London Development Agency.

They claim thousands of jobs will be lost if their businesses are subject to compulsory purchase. About 300 firms will have to leave their premises to make way for the 1,500-acre Olympic arena and village site if the Games are awarded to London in July.

Lance Forman, of salmon smokery HForman & Son, told a meeting at Stratford Town Hall: "We will lobby the IOC not to come to London."

The LDA has accused the companies of seeking unrealistic figures for their land.