NOL raising loans for Hapag-Lloyd cash bid

Singapore: Singapore's Neptune Orient Lines is in talks with banks to take up a $5-7 billion syndicated loan, sources familiar with the situation told Reuters today.
German tourism group TUI  Chief Executive Michael Frenzel is currently touring Asia to market his company's container shipping business Hapag-Lloyd, which the German group has put up for sale and NOL is considered the favourite to take it over.
Hapag-Lloyd is valued by analysts at around $7 billion, including debt.
A spokesman for NOL declined to comment. The shipping firm is in talks with Singapore's three local banks DBS Group, Oversea-Chinese Banking Corp and United Overseas Bank as well as with some foreign banks for the loan, a source close to the situation told Reuters.
The banks expect to receive a formal proposal for the loan this week.
TUI's Frenzel will meet with NOL this week as well as marketing his containerline to OOCL and NYK. China Shipping, Cosco, Hyundai Merchant Marine and STX Pan Ocean are all considered suitors as are the big three from Europe - Maersk, MSC and CMA-CGM. Hapag-Lloyd is the fourth largest boxline in the world.  [23/6/08]