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BANKERS in the German and London equity markets are warning that the Neuer Markt could be heading towards some sort of correction. They say that the overall level of investor nervousness -- over factors such as global stockmarket valuations and the overheated hi-tech sector -- signals a downward move. Recent deals such as the sale of stock in MWG and SVC have been many times oversubscribed, but have either struggled to maintain their issue price or have traded down in the immediate aftermarket.

ROADSHOWS started this week for the jumbo bond issue for Tecnost -- part of Olivetti's hostile bid for Telecom Italia and potentially the largest ever corporate bond issue. Olivetti is offering Telecom Italia shareholders up to Eu15.23bn in five year FRNs paying Euribor plus 185bp as part payment for their shares in Telecom Italia.

* Dresdner Bank

Barclays Capital has appointed Peter Hancock, managing director, as European head of the oil and gas group in the investment banking division. He reports to Peter Luthy who is global head of investment banking. Peter Hancock has worked at Barclays for over 20 years, and will become the senior relationship banker for the oil and gas corporate client base in Europe, the Middle East and Africa. He will work closely with Rich Williams, head of oil and gas for the Americas.

THE STATE of Qatar this week made a spectacular debut in the international bond markets, with the launch of the largest ever single tranche Eurobond from the Middle East. The Baa2/BBB rated sovereign issued a $1bn 10 year Euro/144A offering via Credit Suisse First Boston and JP Morgan, which placed the issue between them.

LEAD arrangers Citibank, Goldman Sachs, Merrill Lynch, Warburg Dillon Read, Banco Bilbao Vizcaya and La Caixa are looking forward to a generous response to the $16bn jumbo for Spanish oil and gas sector leader, Repsol. Repsol is seeking the funds to support its $13.4bn bid for Argentine YPF. The deal is being presented to arrangers, and there have been four bank meetings in Madrid and London. One London banker called the reaction "overwhelming". Replies are due by May 26. The lead arrangers have fully underwritten the deal, with the two Spanish banks underwriting slightly less.

THE EUROPEAN municipal market deepened further this week with the launch of debut euro transactions for the City of Rome and the Province of Naples. Lead managed by JP Morgan, Rome's Eu133m issue is the first transaction from an Italian city to be launched in the new European currency. The deal was documented under Rome's newly signed Eu500m Euro-MTN programme arranged by JP Morgan, and will finance several infrastructure projects.

BEAR Stearns and Sanwa International have begun marketing a ¥50bn securitisation of Japanese residential mortgages for Sanwa Bank that looks set to be the first successful parcelling of the asset class. Sanwa, Japan's fourth largest bank, intends to securitise ¥200bn of its mortgages, and most of the country's other top banks, including Asahi, Fuji, Sumitomo and Tokyo-Mitsubishi, have announced similar plans.

Norway The Nkr750m five year multicurrency revolver for Merkantildata has closed oversubscribed. Co-arrangers had committed Nkr750m, and general syndication added another Nkr700m. The borrower is considering an increase.

VALENCIANA de Cementos, the European arm of Mexico's Cemex, is tapping the market for a $1bn multicurrency term loan. The deal is being arranged by Argentaria, Banco Bilbao Vizcaya, Citibank and SG and has a maturity of seven years. The margin starts at 90bp, and will move between 60bp and 90bp on a pricing grid. The grid has two criteria: a total debt to net worth ratio and a total debt to Ebitda ratio.

PORTUGAL TELECOM and Swiss Re this week reignited a convertible market from which participants expect a busy few months before the summer lull sets in. The Portugal deal in particular had been eagerly anticipated by dedicated convertible and fixed income investors which, despite this week's uptick in bond yields, show little sign of losing interest in the market for equity-linked debt securities.

South Africa Signing takes place today (Friday) for the $130m 364 day term loan for Absa Bank. Demand for the credit was so strong that with $165m in commitments raised the borrower increased the deal from $80m.