Search results for

MANNESMAN, the German industrial group, this week completed one of the most successful secondary offerings of the quarter. Deutsche Bank and Merrill Lynch executed the sale of stock, which took place via a DM3.3bn ($1.85bn) capital increase that was offered to retail and institutional shareholders. In common with many large, liquid secondary deals, the order book was a trim two times oversubscribed, although at an issue price of DM160, the market viewed the stock as well valued, and this fed through to the aftermarket.

WITH THREE of this year's jumbo privatisation sales completed, the Spanish market is to host a plethora of small to mid cap private companies coming to the market in the next two to six months. The Madrid bourse has been among the best performing of the continent's markets, and looks to be unaffected by the first signs of new issue fatigue which have been seen in other centres in recent weeks.

Market commentary Compiled by Tawanda Nyandoro, RBC DS Global Markets, London. Tel: +44 171-865 1087

TWO more Slovak borrowers are planning to tap the Deutschmark Eurobond market following this week's successful DM200m increase to the DM tranche of the Republic of Slovakia's three currency deal in May. The first will be another sovereign credit, Vodohospodarska Vystavba, which has mandated Nomura for an expected DM175m three year issue at 400bp over Bunds.

ARRANGER Bayerische Vereinsbank has begun syndication of a £100m facility for London Electricity that was to have come for £275m. Despite the cut, launch of the five year deal puts an end to market speculation that the loan had been pulled or cancelled earlier this week. The dramatic reduction in facility size has bemused many market players. The original deal was to have been split between a £200m facility for Entergy -- London's parent -- to refinance part of its existing debt facilities and a £75m tranche that London Electricity was to use as a headroom facility.

THE TURKISH equity market is gearing up for a potentially critical bout of primary market activity, with the privatisation programme at last showing signs of progress and leading private sector groups also taking advantage of buoyant market valuations. Following the successful sale of a 12.5% stake in Turkiye Is Bankasi for $650m in May -- a landmark transaction which put privatisation back on the map in Turkey after several years of delays, political U-turns and controversy -- the government is keen to maintain the momentum.

GOLDMAN Sachs, HSBC, Barclays and Deutsche have closed the sub-underwriting phase for co-lead arrangers and co-arrangers of the $6bn senior debt facility backing Pearson Plc's bid with Hicks, Muse, Tate & Frusta for Simon Schusta, the US media firm being sold by Viacom. Appetite for the two levels was immense with over $10.75bn committed.

* Federal Home Loan Mortgage Corp (Freddie Mac) Rating: Aaa/AAA Amount: $4bn

* Centauri Corp Rating: Aaa/AAA

* CSFB is preparing the second securitisation of French commercial property for Vivendi, formerly known as Compagnie Générale des Eaux. Like CGE's Ffr2.02bn La Défense deal lead managed last October by Citibank, the new transaction will parcel rents on office blocks in Paris which CGE is selling to Caisse de Dépôt et Placement du Québec.

BACOB, BBL and Bear Stearns this week brought the first securitisation for Belgium's local social housing leaders. The Bfr7.785bn deal, via special purpose vehicle Belsca SA, was a blow out -- all three bookrunners' allocations were oversubscribed.

Everyone is familiar with the idea of return on capital (ROC). If an investor makes an investment, he wishes to be sure of a good return on the capital invested.