CRUNCH DELAYS RIVERDEEP DEBT DEAL - The Irish Times reports that education publisher HM Riverdeep's bankers look set to shelve plans to sell on $7.15 billion in loans extended to the group until sometime next year as a result of the global credit crunch.
The paper says it is understood that Credit Suisse, Lehman Brothers and Citigroup have encountered significant difficulties in syndicating the debt by the end of this year, as planned.
The debt relates to Riverdeep's proposed $4 billion cash and stock purchase of Harcourt, the US education division of Reed Elsevier, and a restructuring of the group. The deal was announced in July before global stock markets went into a tailspin.
It came just eight months after Riverdeep, which is led by Irishman Barry O'Callaghan, completed a mammoth $4.95 billion reverse takeover of Boston publisher Houghton Mifflin.
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FIVE IN THE HUNT FOR SLIGO CHAMPION - The Irish Independent reports that at lease five established media players are among those fighting it out to buy the 'Sligo Champion' from local owners the Townsend brothers.
The paper says the news comes after confidential information memoranda were issued to more than 10 parties in recent days, ahead of next Tuesday's deadline for first bids.
It is understood that Independent News & Media, the Irish Times, Johnston Press, Alpha Newspapers and Celtic Media have all expressed an interest in the newspaper. UK-based Johnston Press is already one of Ireland's largest regional newspaper owners, Celtic Media already owns the Meath Chronicle while John Taylor's Alpha already owns titles north and south of the border.
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VIRGIN COULD NET ROCK 'SUPER-BONUS' - The Times says Richard Branson's Virgin Group will collect a 'super-bonus' if it meets certain performance targets as part of its proposed acquisition of Northern Rock.
The paper says it has learnt that the windfall for the mobile phones and airlines giant will come in the form of a 'performance warrant' to be paid only when strict return targets have been met for all shareholders.
The Times says details have been kept under wraps but it is believed that more information will become available when Branson's consortium publishes the prospectus for its planned share issue. A Virgin spokesman said: 'It is under consideration now. Everything will be made public before any decisions are made.'
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EASTERN FUNDS FLOW INTO BANKS - The Financial Times says investment funds from the Middle East and Asia have invested an estimated $37 billion in shares of western financial companies this year in a sign the funds are taking a more optimistic view than other investors of the growth prospects for banks, exchanges and asset managers.
The FT says shares in banks around the world rose on Tuesday as investors reacted to news that Abu Dhabi Investment Authority had injected $7.5 billion into Citigroup in the form of convertible shares.
The paper quotes analysts as saying that the ADIA investment was a possible template for other banks hit by the US sub-prime mortgage crisis, such as UBS, to shore up their capital base.
According to analysts at Morgan Stanley, the investment in financials by sovereign wealth funds far outstrips the amount they have committed to other sectors.
