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The week was dominated by two events: the FOMC meeting and the mammoth $14.6bn equivalent multicurrency, multi-tranche offering from Deutsche Telekom. In spite of these momentous occurrences, dollar swap spreads ended the week very near where they were at the end of the previous week. The 10 year mid-market was about 125.25bp over the 6.50% February 2010 notes by lunchtime yesterday (Thursday). Five year swaps were about 104.25bp over 6.75% May 2005 notes, and two year swaps were at 84bp over the 6.375% 2002 Treasury.

ROADSHOWS began this week for the Eu3.5bn Goldman Sachs and SG-led IPO of Vivendi Environment, with the deal scheduled to be priced on July 11. A range of Eu36-Eu41 has been set for the offer, in which between 77.1m and 87.9m shares will be sold.

MORGAN Stanley Dean Witter closed Spanish media giant Prisa's Eu790m IPO between 15 and 20 times covered this week with investors drawn to the company' solid and profitable business model. The deal priced at Eu20.80 - from a range of Eu17.25-Eu21.50 - and performed well during its first week of trading.

Sabesp, the Sao Paulo State water utility, this week launched a $200m three year 144A issue, making it the first non-federally owned Brazilian corporate to issue bonds longer than two years since the Russian crisis. The transaction, led by Deutsche Banc Alex Brown and Salomon Smith Barney, was priced at a fixed re-offer of 99.675 to yield 12.125%, and traded up in the secondary market.

* European Investment Bank Rating: Aaa/AAA

Denmark The Eu650m CP back-up facility for Tele Danmark was signed last week in Copenhagen. Syndication was 80% oversubscribed and banks were heavily scaled back.

The Eu30bn jumbo acquisition financing for France Télécom has blown out. It has raised over Eu70bn in the co-arranger phase - an oversubscription of around 150%. Eight banks were unable to join the facility, several because they were unable to make the strict deadline rather than because they chose not to do the deal. Consequently, there are 53 banks, including the six arrangers, in the deal.

Merrill Lynch and Schroder Salomon Smith Barney found strong US interest for Telewest's $450m five year convertible this week, closing yesterday (Thursday) evening 2.5 times covered after launch on Wednesday. The deal was launched after the close of the market in London to give investors in the US longer to look at the issue. Telewest already has a strong institutional following in the US following its merger with Flextech.

Tunisia is about to attempt a groundbreaking global yen transaction that will be registered with both the US SEC and the Japanese ministry of finance. Euroweek has learned that the deal, via sole lead Merrill Lynch, will be the first ever global Samurai issue. It is believed that the deal for the sovereign will be registered at the SEC on Monday and roadshows will then begin in Europe next week.

* Eurohypo AG Rating: Aa3/AA+

Goldman Sachs and Morgan Stanley Dean Witter launched the largest ever IPO from Turkey this week; a $1.6bn-$1.9bn offer for mobile telco Turkcell that will make the company the largest cap stock on the Istanbul exchange. The company dominates the rapidly growing Turkish cellular market with a 68% market share. "In Turkey, the name Turkcell is synonymous with mobile. No one else even registers in public perception," said one banker.

The markets breathed a sigh of relief this week for two reasons. The Deutsche Telekom landmark issue was not only successfully digested by the market, but it was increased from $8bn to $14.6bn, and all tranches across the four targeted currencies performed extraordinarily well in the aftermarket, most tranches tightening by 4bp-5bp. Plaudits rained in from all quarters, praising the Deutsche Telekom roadshow team for their frank and open discussions with investors and the lead managers for their efficient co-ordination of a complex transaction. The second piece of good news came from the FOMC. On Wednesday, the Fed left its target rates unchanged, but cited some inflation risks so that analysts are anticipating another rate rise of at least 25bp when the Fed next meets on August 22.