LetterOne Mulls Loan, Starts Talks Over Debt In Bid For Spain's DIA
Russian tycoon Mikhail Fridman's LetterOne (L1) investment fund would consider injecting capital into Spanish retailer DIA if other shareholders accept its offer to buy them out, the fund said in the offer prospectus.
L1 is trying to coax shareholders to sell it the roughly 70% it does not already own of the group, which has failed to claw back market share in the face of strong competition in Spain.
Fridman's vehicle also said it had started negotiating with the banks who hold almost two-thirds of DIA's €1.45 billion debt, which, along with a negative equity position, puts DIA at risk of having to declare insolvency in less than two months.
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