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DISGRUNTLED bankers yesterday warned that Mexico's contentious decision to cash in its $2.66bn emergency line of credit could hurt other Latin sovereigns looking for bank loans as well as crowding out Mexican corporates. In a move which has struck the UMS from many banks' lists of most-favoured borrowers, the Hacienda decided to cash in the 18 month contingency loan after banks indicated that they would only want to renew it at higher prices.

POLAND'S Telekommunikacja Polska SA (TPSA) this week mandated JP Morgan and Salmon Smith Barney to lead manage its first international bond issue. Given the continued attractiveness of the telecoms sector and Poland for international investors, the transaction may emerge for as much as $1bn -- making it the largest Eurobond from Poland to date. The issue, to be denominated in dollars, will be the company's third foray into the international capital markets this year -- TPSA is seeking a $100m one year facility via Citibank and Deutsche Bank and in early November up to 25% of TPSA's 350m shares are to be offered for sale in London and Warsaw. The privatisation should raise up to $2bn for the Polish treasury.

EFG EUROBANK, National Bank of Greece and Paribas is on course to complete the Eu1bn offering of privatisation certificates, modelled on the lines of the French government's Balladur bonds. The issue involves the sale of Eu500m five year bonds and a Dra170bn three year zero coupon note for the domestic market that will be priced today (Friday).

THE MOOD in the US new issue market darkened again this week as the New York and Nasdaq stock exchanges suffered heavy losses, with banking and technology stocks bearing the worst of the decline. Although the success of Internet retailer eBay's Nasdaq listing last week had encouraged other companies to think about testing the market, the pick-up in confidence was shortlived.

JOINT lead managers Credit Suisse First Boston and Goldman Sachs have filed a registration statement with the SEC to launch an offering of stock in Chrysler Corporation relating to the US car group's merger with Germany's Daimler-Benz. The merger, which will create the world's largest auto group, will be cemented by a share exchange between the two groups' shareholders.

THE FINNISH government will next week give the go-ahead for the flotation of shares in its national telecom operator, Sonera. In common with other European governments, the Finns have taken soundings on investor sentiment over the past week through lead managers Merrill Lynch and Merita.

THE PROSPECTS for a second sale of shares in France Télécom by the French government are hanging in the balance as the Trésor and global co-ordinator Paribas weigh the chances of a successful sale. Finance minister Dominique Strauss-Kahn refused to comment yesterday (Thursday) on market rumours that the government had decided to postpone the sale after a week of pre-marketing to investors.

FOLLOWING weeks of speculation, Goldman Sachs bowed to market reality this week -- deciding to abandon its planned flotation after a meeting of its partners on Monday. The decision did not come as much of a shock, given the renewed plunge in financial sector shocks as a result of the rescue of hedge fund Long Term Capital Management last week and the scale of the losses revealed by UBS.

Morgan Stanley Dean Witter and MeesPierson are due to price on Monday the Dfl 4bn sale of shares in Fortis Amev, the Dutch financial group which is raising its capital by 22% to finance the purchase of Generale de Banque. The deal has been in the market for two weeks and has generated good interest, despite coming from a sector which has been the worst hit by the current financial crisis.

FROM ZURICH an excited bureau chief Frau Grossrosti rings to tell us that members of her crack knitting and bun munching circle have been summoned to a dawn meeting today (Friday) at UBS headquarters to hear the results of the bank's internal audit into the Sfr950m Long Term Capital debacle.

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