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The UK market for management buy-outs (MBOs) is set to offer banks some interesting transactions over the coming months. The sector is increasingly busy with a number of companies in various industries in talks with private equity houses and relationship banks. This week saw ABN Amro Capital and CVC in talks with the former management of WH Smith over a potential management buy-in of the company's magazine and newspaper distribution operations. Although these talks are at an early stage, bankers familiar with the business expect there to be a number of other bids before any sale. The value of the business is put at around £240m.

Philips Electronics has announced the dealer panel off its $2.5 billion global CP facility, which it signed on February 23. The European dealers are BNP Paribas, Citibank, which is also the arranger, Dresdner Bank, Goldman Sachs, ING Barings/BBL and JP Morgan. The US dealers are Citibank, Goldman Sachs, JP Morgan and Merril Lynch.

* Landesbank Rheinland-Pfalz Girozentrale Rating: Aa1/AA/AAA

Landesbank Rheinland-Pfalz Girozentrale has done its third Polish zloty trade of the year. The Z200 million ($50.58 million) note is issued off the German bank's $15 billion Euro-MTN programme, which is arranged by Merrill Lynch. The note has a two-year maturity and pays a final coupon of 15%. Its two previous Polish zloty trades this year were both for Z100 million.

The first deals of the year from Nordic financial institutions are demonstrating that borrowers have forfeited the Nordic premium and can expect to start paying margins in line with the rest of Europe. The 28.5bp margin on the Eu87.5m five year term loan for Forstaedernes Bank proved popular in the market. The deal closed oversubscribed and was increased from Eu45m. Arranger LB Kiel was joined by co-arrangers Bankgesellschaft Berlin, Hamburgische Landesbank and Landesbank Baden-Württemberg.

The battle for Spain's smallest power generator Hidroelectrica del Cantábrico stepped up this week as RWE's bid for the company was approved - bringing the number of approved bidders to three. However, according to bankers following the bidding, it could still be over a month before a winner is announced.

RWE AG has established a debut Eu5bn debt issuance programme through joint arrangers Deutsche Bank and Merrill Lynch. The programme is partly connected to the German utility’s acquisition of Thames Water and partly to introduce the credit to the debt capital markets.

Sachsen LB Europe is to issue a euro100 million ($93.48 million)FRN, rated AA-. The note will be issued this month and will reach out to March 21 2011. The trade will pay a quarterly coupon of +10bps and will be priced at 100%. The lead manager off the note is Landesbank Sachsen Girozentrale.

Denmark

Once a regular name in the international fixed income market, US student loans agency Sallie Mae launched its first fixed income global deal since 1998 this week, a well received $1bn 5.25% March 2006 issue. The deal was priced 2bp outside Fannie Mae's 5.5% February 2006 Benchmark Note.

Croatia has finished off its year's financing requirement with the launch of a Eu500m 10 year bond through Deutsche Bank and JP Morgan. Hrvoje Radovanic, assistant to the Croatian minister of finance, told EuroWeek the government was very pleased with the price, which came only 2bp wide of its outstanding five year at 157bp over Euribor. He added that, with the ¥25bn Samurai last month, this offering completed Croatia's eurobond plans for 2001.

Skandinaviska Enskilda Banken has issued two HK$100 million ($25.29 million) notes off its euro4 billion ($3.72 billion) debt issuance programme. The trades differ only in their interest payment. One pays annually with a final coupon of 5.150%; the other pays monthly. Both notes have a two-year maturity and BNP Paribas is lead manager off both trades.