DealZone Daily

December 8, 2009

Citigroup Inc and the U.S. government disagree over how much the bank should raise to repay taxpayers and talks may not finish for weeks or even months, people briefed on the matter say.

General Motors Co is talking to BAIC, China’s fifth largest car maker, about a partial sale of assets associated with its Saab brand, including tooling and technology, two people with direct knowledge of the discussions say.

State-controlled Dubai World is discussing with its bank creditors a new date for $3.5 billion in debt maturing on Dec. 14, a Dubai newspaper reports, citing British bankers.

Two activist funds, including Barry Rosenstein‘s Jana Partners, build up stakes in Dutch mail company TNT (TNT.AS) in what a Dutch newspaper says is a bid to shake up its structure after a new strategy announced by the group last week failed to incorporate a broad overhaul.

For more on these and the rest of the latest deals news from Reuters, click here.

And in the papers:

Reliance Industries (RELI.BO) is in talks with more than a dozen banks to raise $8-$10 billion for the acquisition of bankrupt chemical company LyondellBasell Industries, the Economic Times reported. Reuters story here.

Private equity firms Carlyle, Apax Partners and Kohlberg Kravis Roberts (KKR.AS) are interested in buying India’s ICICI Group’s 27 percent stake in IT firm 3i Infotech (TIIN.BO), the Economic Times reported. Reuters story here.

Oil and Natural Gas Corp (ONGC.BO) has received bids from Japanese firms Itochu Corp (8001.T) and Mitsui & Co (8031.T) to buy a 25 percent stake in a unit of the Indian energy major, the Economic Times said.

Financial News says former Merrill Lynch investment bankers won a major concession from Bank of America Corp., as it agreed to reverse a decision preventing them from using the old Merrill bull logo on their business cards, after lobbying from top bankers such as Andrea Orcel.

Guardian columnist Nils Pratley says it’s no wonder Carlyle’s approach to British waste manager Shanks falls 10 percent short on price: “The private equity firm has little expertise in waste management and it’s hard to see what, if any, operational skills it brings. It’s not as if Shanks has a problem that needs fixing; the company has had its rights issue, has supportive shareholders and appears to be winning plenty of contracts.”

Times of London columnist Nick Hasell says BHP Billiton and Rio Tinto’s joint venture, already 6 months in the making, remains a deal worth doing. But he cuations: how much of the cost savings BHP and Rio will retain may be up to the regulators. To get clearance for the deal, the miners may have to prove that it will also be good for their consumers, the steel producers.

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