Times Online- Blackstone, the US private equity group, was locked in rescue talks last night with a dozen lending banks, including Bear Stearns, to prevent the collapse of two hedge funds thatcontrol investments of about $20 billion (£10 billion).
Bear Stearns, the parent bank, had offered to help the hedge funds with a $1.5 billion credit facility in return for assets, but it is understood that the offer was made on condition that no assets were seized by other lenders.
Merrill Lynch, the American investment bank, yesterday published a list of assets worth $850 million held by the hedge funds that it intended to seize and auction on Wall Street last night. It wanted to sell the bonds to claw back money that it had lent to the funds.
It was not clear whether the parent bank’s offer of new credit facilities still stands.
