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09/04/07

U.S. probe could jeopardize ABN-Barclays deal: report

NEW YORK (Reuters) - A probe by the U.S. Justice Department into past money transfers at ABN AMRO Holding NV looms as a hurdle to signing a deal to sell the Dutch bank to Britain's Barclays Plc , the Wall Street Journal reported on Monday. ABN is working toward trying to reach a settlement with the Justice Department but is facing time pressure while Barclays wants greater reassurance that the matter can be resolved before signing a deal to buy ABN for an estimated $80 billion within the next two weeks, the newspaper quoted people familiar with the situation as saying.

Group eyes $50 billion bid for Dow Chem

LONDON (Reuters) - A consortium of Middle Eastern investors and American buyout firms is preparing a $50 billion approach for Dow Chemical Co. in what could be the world's biggest ever leveraged buyout, a paper said on Sunday. Quoting sources close to the deal, The Sunday Express, a UK tabloid paper, said a financing package has been put in place for a break-up bid of between $52 to $58 a share and an approach valuing the company at least $50 billion could come by the end of this week.

CITIC Bank readies $5.7 billion HK/Shanghai IPO: sources

HONG KONG (Reuters) - China CITIC Bank Corp., the country's No. 7 commercial lender, will begin taking orders from institutional investors on Tuesday to raise as much as US$5.7 billion in the world's biggest IPO so far this year, people familiar with the matter said on Monday. CITIC Bank, in which Spain's Banco Bilbao Vizcaya Argentaria owns 4.83 percent, will offer shares between 2.48 and 2.81 times 2007 book value in what will be the second simultaneous listing in Hong Kong and Shanghai, after last year's listing of Industrial and Commercial Bank of China (ICBC) <1398.HK><601398.SS>, the sources said, valuing the Beijing-based bank at a discount to some of its bigger rivals.

Citigroup may buy Old Lane hedge-fund firm: report

NEW YORK (Reuters) - Vikram Pandit, a veteran Wall Street executive once considered a possible heir apparent at Morgan Stanley before quitting in 2005, is in talks to take a top job at Citigroup Inc. , The Wall Street Journal reported. Luring Pandit, though, may be pricey. Citigroup is looking to bring him on board by buying Old Lane LP, the hedge-fund firm Pandit launched last year with other Morgan Stanley alumni, in a deal that could exceed $600 million, the Journal said, citing people familiar with the matter.

China's March surplus to see "notable change"

BEIJING (Reuters) - A top Chinese trade official on Monday predicted a "notable change" in the country's trade data for March after an unexpected surge in the surplus in the first two months of the year. The surplus in January and February combined tripled from a year earlier to $39.7 billion, handing further ammunition to U.S. critics who say the yuan is seriously undervalued, giving Chinese exporters an unfair advantage in global markets.

Citigroup to buy Taiwan's BOOC for $426 mln

TAIPEI (Reuters) - Citigroup said it will pay T$14.1 billion ($426 million) for Taiwan's Bank of Overseas Chinese (BOOC), its third Asian purchase in recent months as it looks to boost overseas earnings. Citigroup's U.S.-based Chief Executive Charles Prince said last month he wanted to increase earnings from foreign markets to up to 65 percent of its total from a current 45 percent.

Berkshire takes 10.9 pct Burlington Northern stake

NEW YORK (Reuters) - Warren Buffett's Berkshire Hathaway Inc. said it has acquired a 10.9 percent stake in Burlington Northern Santa Fe Corp. , becoming the railroad company's largest shareholder. Berkshire owned 39,027,430 shares of Burlington Northern with a market value of $3.23 billion as of April 5, according to a Friday filing with the U.S. Securities and Exchange Commission. Prior to Friday, Berkshire had not disclosed a stake in the second-largest U.S. railroad.

Wesfarmers receives support from major Coles shareholder

SYDNEY (Reuters) - Australia's Wesfarmers Ltd. has secured the support of privately owned Hedley Group, a shareholder of Australia's Coles Group Ltd. , for its A$19.7 billion ($16 billion) takeover of the retail giant. Hedley Group said late on Sunday that it had agreed to vote its 17.9 million Coles shares -- 1.5 percent of Coles' stock -- in support of Wesfarmers' proposed deal, lifting the Perth-based conglomerate's voting control to 12.8 percent.

SABMiller considers $12.8bln bid for brewer S&N: paper

LONDON (Reuters) - Brewing giant SABMiller is plotting to acquire rival Scottish & Newcastle in a 6.5-billion-pounds ($12.8 billion) deal, a paper said on Sunday. The maker of Miller Lite and Peroni could make a bid of around 712 pence a share for S&N within days, the Sunday Express quoted sources close to the company as saying.

Isuzu buys land for U.S. truck plant in Alabama

TOKYO (Reuters) - Japan's Isuzu Motors Ltd said on Monday it has bought land for a U.S. truck plant in Alabama, pushing ahead with plans to reestablish a production base in the world's biggest vehicle market. The truck maker declined to provide details on plans for the factory but a source said the plant was scheduled to come on line around 2010 and initial annual production capacity would be several thousand units.

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