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Less than a month after Italenergia set the Euroloan market alight with the announcement of its Eu5bn bid for Montedison, Italy is again the centre of attention as bankers speculate on a possible Eu2bn facility to back the joint takeover by Pirelli and Benetton of Olivetti and Telecom Italia. Just as the market was heading for its summer slowdown, it emerged that Pirelli and Benetton-owned Edizioni Holding were creating a special purpose vehicle (SPV) to buy a 23% stake of Olivetti from holding company Bell, which is owned by Telecom Italia's former chairman Roberto Colaninno and other Italian investors, for Eu4.17 a share.

TI Securitisation Vehicle has signed a euro2 billion ($1.76 billion) Euro-MTN asset-backed note programme. WestLB acts as lead arranger and BNP Paribas and Finanziaria Internazionale are co-arrangers. The dealer panel consists of the three arrangers, Barclays Capital, Mediocredito Centrale, Merrill Lynch, JPMorgan, Morgan Stanley and Schroder Salomon Smith Barney.

Deutsche Telekom (DT) has confirmed that it has postponed the flotation of its mobile phone division, T-Mobile, until next year. Despite escalating debts and the threat of a possible downgrade from the rating agencies, DT has decided not to risk a failed flotation. It appears that lessons have been learnt from France Télécom's IPO of Orange at the beginning of this year. Said one telecoms analyst: "Looking at what happened with Orange, this looks to be a sensible decision. The question is how long will they have to wait before the market picks up. I cannot see any positive triggers taking effect for at least six months, maybe even 12."

Transco has increased the limit off its Euro-MTN programme from euro5 billion ($4.38 billion) to euro6 billion. Barclays Capital and HSBC have been added as dealers.

UBS launched a $260m bond exchangeable into Yukos this week that, according to bankers, is only the fifth ever exchangeable with underlying Russian stock. The deal was structured to help holding company Yukos Universal reduce its shareholding in Russia's second largest oil company, Yukos, which has a market capitalisation of $8bn. UBS Warburg, the lead manager, issued the bond after structuring a hedging arrangement with Yukos Universal.

UBS Warburg has set up a $5 billion secured debt issuance programme under the name of J-SPARC.

The retail sector in the UK kept the loan market busy this week with debt mandates being awarded for the demerger of Woolworths and the ABN Amro Private Equity backed buy-out of WH Smith. Barclays, HSBC and Royal Bank of Scotland have won the mandate to arrange the £250m three year facility for high street retailer Woolworths. The company will start trading on August 28 following its spin-off from parent company Kingfisher.