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Oil and gas conglomerate BP managed to sell this week its entire 7% stake in the world's largest private owner of oil, Russia's Lukoil, in the biggest equity capital markets transaction ever done in a Russian stock. The Eu657m combined equity and equity-linked offering, executed by Credit Suisse First Boston and UBS Warburg, demonstrates that investor interest in Russia is picking up again. The issue was popular, and both tranches were well covered. The equity-linked paper was priced outside the terms used for bookbuilding, but still rose a staggering 8% on the first day of trading. The equity was sold at $40.375, the bid side of Monday's closing price, although this was down 11.8% from Friday's close of $45.75. "People were not asking for an explicit discount to market price," said a banker close to the deal. Another added: "We had pretty strong interest for the equity. It was helped by the momentum of the exchangeable." Lukoil was trading yesterday (Thursday) at $10.05 per share, or $40.2 per American depository share (ADS).

Oil and gas conglomerate BP managed to sell this week its entire 7% stake in the world's largest private owner of oil, Russia's Lukoil, in the biggest equity capital markets transaction ever done in a Russian stock. The Eu657m combined equity and equity-linked offering, executed by Credit Suisse First Boston and UBS Warburg, demonstrates that investor interest in Russia is picking up again. The issue was popular, and both tranches were well covered. The equity-linked paper was priced outside the terms used for bookbuilding, but still rose a staggering 8% on the first day of trading. The equity was sold at $40.375, the bid side of Monday's closing price, although this was down 11.8% from Friday's close of $45.75. "People were not asking for an explicit discount to market price," said a banker close to the deal. Another added: "We had pretty strong interest for the equity. It was helped by the momentum of the exchangeable." Lukoil was trading yesterday (Thursday) at $10.05 per share, or $40.2 per American depository share (ADS).

UK fund manager Prudential M&G this week priced the first ever sterling arbitrage collateralised debt obligation via Morgan Stanley Dean Witter. Although historically arbitrage deals were often associated with CDOs backed by high yield bonds and loans, the assets backing Panther CDO 1 BV are predominantly investment grade.

Doughty's Rank Hovis plan rewrites whole business rules. Although RHM owns 12 flour mills in the UK, and this property will be included in the deal, it will not be protected to the extent of assets such as motorway services where regulatory barriers protect competitors from setting up within 30 miles.

Banca Popolare di Bergamo (BPB) this week launched its second securitisation via a Eu331m deal backed by performing Italian mortgages and UK residential securities. Lead managed by Schroder Salomon Smith Barney, the deal priced amid an abundance of Italian issues in what looks set to be a bumper year for securitisation in the country.

Bank of America last Friday completed a £65m securitisation backed by consumer store cards and loans generated by Clydesdale Financial Services, the consumer credit division of high street retailer Next plc. The deal will finance the acquisition of Clydesdale Financial Services by Carnegie Holdings Limited, the joint venture which is 90% owned by Barclays Private Equity and 10% by Clydesdale's existing management.

Korea's government has announced the "second stage" of its financial restructuring programme, starting with the creation of two "super-banks". The merger of Kookmin and H&CB, apparently through the choice of its own CEOs, makes sense. But the creation of a holding company including Hanvit and a group of regional banks seems, at best, eccentric. But what seems practical elsewhere in the world doesn't necessarily work in Korea. By Chris Wright.

Singapore continues to keep its head above water but with total exports representing 135% of GDP the island-state remains extremely vulnerable. No better time to reach out beyond its Asean neighbours to consolidate its position within the global economy, reports Fiona Haddock.