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Two more senior officials have left Merrill Lynch in London as management changes continue to unfold in the bank's principal investment and structured finance group. Hermann Watzinger, head of securitisation and portfolio credit derivatives, and Henry Schmeltzer, who ran structured credit products, both left last week by mutual agreement.

Guarantor: Volkswagen Financial Services AG Rating: A1/A+

UK-based Vodafone has a foothold in mobile telecommunications markets throughout Europe - except France. So, with a 20% direct stake and a 12% indirect stake in French wireless operator SFR, which is 80% owned by Cegetel, it makes sense that Vodafone increase its 15% ownership in Cegetel to gain access to the French wireless market. This would mean buying Vivendi Universal's (VU) 44% stake in Cegetel, British Telecoms' 26% holding and SBC's 15% share.

WestAM finished rebuilding its global fixed income and currencies team in London this week with the appointment of Philip Chow as head of UK and global spread product. Chow starts on Monday and will report to Nigel Jenkins, head of global fixed income and currencies. Jenkins was hired by WestAM from Rothschild Asset Management (RAM) in July 2001 to help rebuild the global fixed income and currencies team, and since last summer the asset manager has announced four new hires, including Chow, to take the team to eight.

Weak economic data from the US, which led to a 230 point fall in the Dow yesterday (Thursday), destroyed bankers' hopes for a return to stability in the bond markets and analysts now fear that the US will cut rates to prevent a double-dip recession. Corporate issuance fell to an all-time low, just one transaction being launched this week. But proving that quality at the right price will overcome investor fears, Procter & Gamble launched an opportunistic $500m five year global bond via Citigroup/SSB, Goldman Sachs and JP Morgan, raising the upper end of the targeted amount, albeit at the wide end of Treasuries plus 85bp-87bp.

Highlighting demand for five year and shorter paper from UK and overseas accounts, WestLB this week lead managed 14 sterling floating rate MTN trades totalling £638m for bank issuers. According to a WestLB syndicate official, the bank was initially approached by a single external customer interested in building a portfolio of sterling denominated FRNs for European banking names. While setting up the portfolio, WestLB became aware of demand from other accounts, which enabled the bank to increase the size of some of the issues. The borrowers are: WestLB (£99.183m), SNS Bank (£50m), Sanpaolo IMI (£74m), NordLB (£40m), LB Sachsen (£50m), IntesaBci (£24m), Hamburgische LB (£50m), Dexia Credit Local (£50m), Crediop Overseas Bank (£25m), Britannia Building Society (£45m), Bremer Landesbank (£20m), Bradford & Bingley (£30m), Bank of Ireland (£21m), HBOS (£50m).

This was another week of wild rumours. One fund manager rang us to say that he couldn't get a bid or an offer of any size in ING shares. Another called to say that he was having problems finding a bid in a two year old British Telecom bond. Another gibbering portfolio manager telephoned to say that there was no bid for Lehman's euro commercial paper. That wasn't surprising, as Lehman doesn't have any outstanding ECP. When it turned out to be a reference to some Lehman floating rate notes these were not only alive and well, but trading through Goldman Sachs paper.

Rating: AA/AAA Amount: $100m

Rating: Aa1/AA+/AAA Amount: Eu100m (fungible with Eu100m issue launched 12/07/02) Landesschatzanweisung series 408

Mandated lead arrangers Credit Suisse First Boston, Lehman Brothers and Royal Bank of Scotland are set to launch the circa Eu2.2bn debt facilities backing Europe's biggest ever leveraged buy-out into the Euroloan market. The facilities will support the Eu5bn LBO of French electrical fittings and accessories company Legrand by the Wendel Consortium from Schneider Electric.

Rating: AAA (Fitch) Amount: Eu400m (increased from Eu200m)

Mandated lead arrangers Credit Suisse First Boston, Lehman Brothers and Royal Bank of Scotland are set to launch the circa Eu2.2bn debt facilities backing Europe's biggest ever leveraged buy-out into the Euroloan market. The facilities will support the Eu5bn LBO of French electrical fittings and accessories company Legrand by the Wendel Consortium from Schneider Electric.