Monday August 24, 04:40 PM

Essar Oil in talks for $750 mln loan - sources

MUMBAI (Reuters) - Essar Oil Ltd (ESSAROIL.NS : 127.9 -3.4) is in talks with UBS, Citigroup and JPMorgan for a loan of up to $750 million if it wins the bidding for three European refineries put up for sale by Royal Dutch Shell, three sources with direct knowledge of the matter said.

Essar Oil, which placed bids earlier this month for the three refineries, hopes to win at least one of them and is finalising its funding structure, said the sources, who declined to be named.

They said it was still too early to detail the terms of the funding, including pricing, but added it was likely to be a bridge loan.

UBS is advising Essar on the acquisition, they said.

An Essar spokesman said in an e-mailed response, "As a group, we keep looking at growth opportunities in the business in which Essar operates. However, it is not our policy to comment on any specific proposal."

Last week, sources said Essar submitted bids for Shell's 267,000 barrels-per-day Stanlow refinery, Britain's second biggest according to a 2007 study, and two German sites.

Valero Energy Corp and a Saudi group have also expressed interest.

Essar Oil is part of the Ruia family-owned Essar Group, whose interests include steel, power, shipping and telecoms.

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