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"Allianz to buy Dresdner Bank?" We were dining quietly in Chelsea with a group of bankers when everyone's mobile started to shrill at the same time. Thank heavens that foie gras can't go cold. Our first reaction was that this deal does not win any brownie points for originality. Allianz already owns more than 20% of Dresdner and lots more through cross-shareholdings. Allianz has tried to find a solution for Dresdner through attempted mergers with Deutsche and Commerzbank and failed on both occasions. Now Allianz looks as if it may take Dresdner for itself. There is some logic in this strategy. Dresdner is a much better bank than it was two years ago but it needs a push to propel it into the premier division. With Allianz's financial muscle, Dresdner could become the European answer to Citigroup. In investment banking Allianz-Dresdner could clean up in Germany thanks to Allianz's stranglehold on German industry. At once Dresdner would become the most powerful bank in Germany. We suspect that our friends at Deutsche will be holding emergency meetings this weekend.

Bayerische Landesbank has signed a euro20 billion ($17.73 billion) CP programme. The issuer is the arranger and sole dealer.

Plans unveiled by Bavaria and the Bavarian Association of Savings Banks to remove the public support mechanisms enjoyed by Bayerische Landesbank (Balaba) have been welcomed by the market this week, with analysts saying the announcement has increased the pressure on other Landesbanks to restructure. Under the Bavarian plan, the public support mechanisms of Anstaltslast and Gewährträgerhaftung would be removed when the ownership of Balaba is transferred to a financial holding company owned by the state and its savings banks.

Dresdner Kleinwort Wasserstein (facility agent) and UBS Warburg (bookrunner) launched the syndication yesterday (Thursday) of the $4.3bn of loan facilities supporting the $17.6bn acquisition of De Beers, the world's best known and largest diamond producer, by DB Investments. The $4.3bn of debt is structured into two tranches. Tranche 'A' is a $3.3bn five year amortising term loan, while tranche 'B' is a $1bn five year revolving credit. Both tranches pay an initial margin of 100bp over Libor, and through the life of the loan margins ratchet according to net debt to Ebitda.

EuroWeek hears that Banque du Caire has mandated ABC and Fuji Bank to arrange a $300m three year term loan. Further details will be available next week.

The besieged managers of German chemicals conglomerate Bayer found their position even more unsteady at the end of last week after announcing that the company had postponed indefinitely its Eu880m combined offering. Bayer was to sell its entire

Telecom Italia this week disclosed plans to launch a debut fixed rate bond, delaying a scheduled Eu1bn securitised transaction in favour of the senior debt offering. The deal, to be issued by Telecom Italia's wholly owned subsidiary Sogerim with the guarantee of Telecom Italia, is expected to raise at least Eu5bn and be split into tranches of five and 10 years.

Dresdner Kleinwort Wasserstein and HSBC have been awarded the mandate to lead manage a Eu1bn 10 year benchmark offering for Land Berlin, which will be the issuer's largest ever deal. The transaction should be launched after premarketing has been completed in the next few weeks.