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THE MARKET was buzzing yesterday evening (Thursday) with speculation that Tesco, the UK supermarket chain, has put in place a jumbo credit facility to finance a bid for fellow retailer Marks & Spencer. Talk of a credit for Tesco has been circulating in the loan market for about three weeks. But several senior bankers have informed Euroweek of their belief that Tesco has finally secured verbal agreements with a number of lenders for a £9bn-plus credit. "It seems something is going on," said one banker last night. "We've been trying to find out whether it needs something to be done - offering our services. But we have been shunned. This could well mean that Tesco has something substantial in place from a group of lenders."

THE MARKET was buzzing yesterday evening (Thursday) with speculation that Tesco, the UK supermarket chain, has put in place a jumbo credit facility to finance a bid for fellow retailer Marks & Spencer. Talk of a credit for Tesco has been circulating in the loan market for about three weeks. But several senior bankers have informed Euroweek of their belief that Tesco has finally secured verbal agreements with a number of lenders for a £9bn-plus credit. "It seems something is going on," said one banker last night. "We've been trying to find out whether it needs something to be done - offering our services. But we have been shunned. This could well mean that Tesco has something substantial in place from a group of lenders."

TOKYO-MITSUBISHI International has hired Stafford Butt, assistant director of the securitisation group at ING Barings in London. Butt will start at TMI in mid-March as director, charged with boosting the bank's ABS business in Europe. Richard Sullivan, head of securitisation for Europe, the Middle East, Africa and non-Japan Asia, has recently recruited two others to work on European securitisation. Gianfranco Simionato moved to TMI as an associate director at the end of December - the same rank he held in Warburg Dillon Read's London asset backed finance group. Alessandro Gatto has also joined as an associate.

Dresdner Kleinwort Benson and Goldman Sachs look set to bring T Online to market in April in what will be the largest equity fundraising for a Europe-based internet company. The deal for the region's largest ISP could raise between Eu3bn and Eu5bn, dwarfing the UK's Freeserve offering of £264m, freenet's Eu106m IPO and Terra Networks' Eu794m spectacular. Controversially some analysts claim the company is likely to shun the tech-based Neuer Markt in favour of the Amtlicher Handel.

THE REPUBLIC of Turkey broke new ground in euros this week with the launch of its largest and longest dated new issue yet in the single currency. The Eu750m February 9, 2010 transaction was lead managed by Dresdner Kleinwort Benson and JP Morgan, which beat off competition from a shortlist of six bidders. "This is the de facto benchmark issue in euros for Turkey and provides the liquidity that investors were looking for," said Ian Platt, head of emerging market sovereign debt syndicate at Dresdner Kleinwort Benson.

Judgement day for Finalrealm's bid for United Biscuits is on February 15, when acceptances are due. In the meantime the consortium's offer document is available for the loan market to study. Deutsche Bank (London) is arranging the senior debt backing the bid and has come up with an unusual structure.

* Bank of America Corp Rating: Aa1/AA-/AA

The fixed rate euro market finally showed signs of shaking off its post-Y2K slumber this week as improving underlying government bond markets opened a window for borrowers. And although investors remain nervous about increases in US and European interest rates and any fall in yields is seen as temporary, the rise in government bond prices and subsequent swap spread widening tempted borrowers to the long end of the curve.

Vodafone AirTouch this week kicked off roadshows for its planned $4bn to $5bn three tranche global bond slated for launch via Goldman Sachs and Salomon Smith Barney late next week — just days ahead of the close of its Eu150bn bid for Mannesmann on February 7.

* Bank Of Scotland Treasury Services PLC Guarantor: Bank of Scotland

Four Spanish regional savings banks this week launched the year's first securitisation of prime European mortgages, with a Eu660.6m deal lead managed by Crédit Agricole Indosuez, Dresdner Kleinwort Benson and EBN Banco. Caja de Ahorros del Mediterráneo contributed 37.8% of the collateral to TDA 11; Caixa Tarragona 22.8%; Caixa Terrassa 21.5% and Caixa Manresa 18%.

TOKYO-MITSUBISHI International has hired Stafford Butt, assistant director of the securitisation group at ING Barings in London. Butt will start at TMI in mid-March as director, charged with boosting the bank's ABS business in Europe. Richard Sullivan, head of securitisation for Europe, the Middle East, Africa and non-Japan Asia, has recently recruited two others to work on European securitisation. Gianfranco Simionato moved to TMI as an associate director at the end of December - the same rank he held in Warburg Dillon Read's London asset backed finance group. Alessandro Gatto has also joined as an associate.