DealZone

Corus Bankshares is a poster boy for TARP. Hammered by losses on condominium development loans, the construction-oriented bank said on Friday it may run short of capital.

But while many banks are repulsed by the strict oversight that comes with TARP money, and are increasingly fighting to resist state aid, Corus and some others are finding that getting a taxpayer bailout is not so easy. Corus said the Treasury plans to reject its request for cash. About $294 billion has been distributed from that program to more than 300 institutions, Treasury said on Friday.

The list of TARP denials is not long, but is also difficult to judge. There is no obligation for banks that are denied funds to announce that they are being denied state-backed credit. And Corus says it is still holding out hope, and is probably prepared to tinker heavily with its application until it gets a “yes” from the Treasury, particularly If the alternative is going out of business altogether.

In other deals news:
* Global miner Rio Tinto said it had held talks to sell some assets to Chinese government-owned aluminium maker Chinalco, its biggest shareholder, reportedly to cut debt by up to $8 billion.

* UK-based interdealer broker ICAP Plc said it was part of a group of financial companies considering a cash offer for LCH.Clearnet, the London-based clearing house.

* Astellas Pharma, Japan’s second-largest drugmaker, said it was not considering a hostile bid for CV Therapeutics and its offer price was the best one.

* Russian tycoon Alisher Usmanov is proposing a tie-up between his Metalloinvest iron ore group and Norilsk Nickel that would make him the largest shareholder in a merged giant, Vedomosti reported.

* Ford Motor factory in Blanquefort in western France will be acquired by a German industrial group, Economy Minister Christine Lagarde said, adding that 1,600 jobs at the plant would be saved.

* Dutch state-owned bank ABN AMRO has held talks with Royal Bank of Scotland  on buying back some its former operations, the Dutch Finance Ministry said.

* Dutch dredging group Boskalis Westminster said it might buy more shares in Smit Internationale after a regulatory filing showed it had upped its stake in the maritime services company.

* India’s state-run Canara Bank said state-owned Life Insurance Corp of India has raised its stake in the bank to a little over 5 percent through purchase of shares from the secondary market.

* Frigo Pak, a Turkish canned-food company, said it has decided to consider a strategic partnership.

* A senior management team from Russia’s top bank, state-owned Sberbank, has flown to Kazakhstan for talks on a potential takeover of Kazakhstan’s BTA, a source close to the talks said.

* Italy’s IT Holding, owner of fashion brand Gianfranco Ferre, has received expressions of interest from various parties, it said, adding it was in talks with licensors over delays in paying royalties.

* Kamat Hotels India said its board approved selling 60 percent stake in its subsidiary, Concept Hospitality Ltd.

(PHOTO: The cast of A Chorus Line performs the opening number at the 61st Annual Tony Awards in New York June 10, 2007.  REUTERS/Gary Hershorn (UNITED STATES)