Xstrata will offer a £5bn sweetener to seal its proposed merger with Anglo American,  The Observer said. Citing City sources, the Observer said Xstrata would raise the money via a rights issue. But Xstrata told Reuters the deal “remains a nil premium merger of equals”. Elsewhere, the Sunday Times said the Lloyds Banking Group is poised to write off as much as £13bn on its loans to commercial property, businesses and mortgage holders when its reports its first-half results in three weeks. The newspaper also said Terra Firma has asked Citi to inject up to £300m into its debt laden music group, EMI. The British buyout group, led by Guy Hands, has also asked the bank to write-off about £500m of the debt from the label’s more troubled recorded music division, the Sunday Times said.

This entry was posted by Stacy-Marie Ishmael on Monday, July 13th, 2009 at 4:45 and is filed under Capital markets, M&A, Private equity. Tagged with anglo american, citi, emi, Lloyds Banking Group, xstrata. Edit this entry.