Saturday Papers: KKR funds buy-out of RBS payment arm - bid news and gossip

Financial Times

* KKR has taken a leading role in providing £300m of mezzanine financing for the £2bn buy-out of RBS' payment processing arm by a consortium of rival US private equity groups.

* Old Mutual has sold its US life business to hedge fund Harbinger Capital for $350m.

*  Prudential is likely to cut the estimated costs of its collapsed bid for AIG’s Asian business by clawing back some fees from advisers such as Credit Suisse, sources said.

* AIG expects to clinch a sale of its consumer finance unit in the next few weeks and is looking to raise some $4bn in debt to reduce its reliance on federal aid.

* Nearly $10bn was wiped from HP's stock market value after the company disclosed the departure of its chief executive, Mark Hurd, amid allegations of unethical behaviour.

* The Middle East dispute over security threatens to derail RIM’s global ambitions.

* Sahara Group, sponsor of India’s cricket team, is in talks with Liverpool Football Club.

The Guardian

* Connaught shares plunge on news that writedowns will help turn expected £60m profit into loss.

* Coutts investigated by Financial Services Authority; the inquiry covers savings products sold to Jeremy Clarkson and Frank Skinner.

The Independent