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HSBC has agreed in principle to the acquisition of a 75% controlling stake in Bangkok Metropolitan Bank (BMB). But due diligence questions could hold up a final settlement for months, according to sources close to the negotiations. Several sticking points in the documentation, which could substantially affect the final net purchase price, remain on the table.

At least one Indian company has reason to be cheerful over the recent slide in the country's stock markets. Reliance Industries has embarked on a $250 million equivalent share buyback – and the drop in its stock price means it can pull in more shares. The company has offered a maximum price of Rs303, representing a 22% premium over the average of high and low prices in the year preceding April 5, when the offer was announced. At that price, it should be able to buy 3.6% of its floating stock. The buyback will take place at intervals over a year from June 13, when its shareholders are expected to approve the plan. The price of Reliance stock, though fairly steady compared with the rest of the Indian market, slid from Rs328 on May 1 to Rs314 on May 25.

Korea's Pohang Iron & Steel Co (Posco), the world's second-largest iron and steel producer, has completed its first international bond since 1997 with a ¥15 billion ($140 million) three-year samurai, lead managed by Nikko Salomon Smith Barney. Says an officer in the international finance team at Posco: "This is an exciting deal. We reached a record low coupon rate and received very good market response." The bond bears a coupon of 1.51%, and provided spread at launch of 75bp over yen Libor. Posco's previous yen deal, a ¥30 billion transaction in 1996 led by Nomura, had a coupon of 2.85%. The coupon is also lower than the 1.65% and 2% rates paid by the Korean Development Bank and Korea Electric Power, respectively, for their samurai issues late last year.

Shelved IPOs, slumping share prices – it's a testing time for Australian Internet stocks. But, as Bina Brown reports, a raft of capital-raising exercises may go ahead. Is that wise?

Investors' love-hate relationship with telecoms supply in the high yield market continues unabated. But alongside the dominant industry, bankers expect growth from other sectors.

Go bankrupt in the US and you may be feted as brave. Go bankrupt in Europe and you may be labelled foolhardy.

When investors pulled money out of the US high yield market in the past, the European sector would quickly suffer because of its lack of independence.

As returns on government supply have fallen and fears about event risk in the high grade market have grown, more and more institutions have turned to the European high yield market.

This is the third of three articles regarding a heuristic approach to measuring counterparty credit risk. In the first part, author Robert Garzotto explained the approach broadly.

TELSTRA has added a step-up coupon protecting investors against future downgrades in an attempt to attract buyers to its Eu1bn 10 year bond issue, lead managed by BNP Paribas and Deutsche Bank, which will be launched around June 5. The added feature emerged from the Australian telecommunications giant's European roadshows which ran for a fortnight earlier in the month. It is the company's reaction to a widening of spreads on its existing bonds after a costly series of rating actions.

IN A surprise announcement yesterday (Thursday), Vodafone Pacific postponed its planned IPO just days before a global roadshow was due to begin. But parent company Vodafone Airtouch remains committed to listing its Australian operations should the volatility in global markets decrease and if sentiment towards telecommunications stocks improves. However, the window of opportunity in the coming months will be slim as the European and US holiday season looms and as Sydney prepares for the Olympics in September.