Bonds: Scania CDS edge down

The cost of insuring the debt of Swedish truckmaker Scania fell on Monday, while a US holiday tempered trading in the European credit market overall.
German truckmaker MAN said it might drop its unsolicited 9.6 billion euro bid for Scania if friendly talks can secure its desired tie-up with the Swedish truckmaker, MAN said.
Halting the bid would open up the possibility for three-way negotiations over a truck alliance with their joint largest shareholder Volkswagen, which favours an amicable alliance.
Volkswagen, which holds a 34 percent voting stake in Scania, said it would allow MAN to acquire its Swedish rival if this turns out to be the best solution.
Five-year credit default swaps on Scania tightened 5 basis points to a 32.5 basis point mid-price on the news, a trader said.
"Before, talk was of a take-over, but now it looks more likely to be a merger. MAN's pulling its hostile bid, and then there's the Volkswagen comments," he said.
In the wider market, the iTraxx Crossover index of mostly "junk"-rated credit default swaps tightened 1 basis point to a 275 basis point mid-price, but it was a quiet afternoon, an index trader said, as the US bond market was closed for the Columbus Day holiday.
The iTraxx Europe index was unchanged at 29 basis points, he added.
Elsewhere, the cost of insuring the debt of TeliaSonera edged up after activist fund Cevian said it had bought 72 million shares in the Swedish-Finnish telecom operator to become its fourth largest shareholder.
Five-year credit default swaps on TeliaSonera rose 3 basis points to a 44 basis point mid-price, a trader said.
Credit default swaps on Metso fell after Standard & Poor's upgraded the Finnish engineering group to investment grade following a similar move by Moody's Investors Service last month.
An upgrade to investment grade means more investors can buy Metso's debt and should lower its financing costs.
S&P lifted Metso's long-term rating one notch to BBB-, the lowest investment-grade rating, citing the company's strong performance.
The credit market has been expecting Metso to return to investment-grade status - the company has been removed from the latest series of the iTraxx Crossover credit default swap index, which includes mostly "junk"-rated companies.
Five-year credit default swaps on Metso tightened 2 basis points to 48.5 basis point mid-price, a trader said.
In the cash bond market, the FTSE Euro Corporate Bond Index showed investment-grade corporate bonds in euros yielding an average 53.5 basis points more than similarly-dated government bonds at 1451 GMT, 0.5 basis points less on the day.
In the primary market, more details emerged on British utility Centrica's planned sterling bond.
The 300 million pound ($560 million) 10-year bond will be priced to yield about 100 basis points over UK government gilts, a banker familiar with the deal said.
In late September, Centrica hired ABN Amro, J.P. Morgan and Royal Bank of Scotland to manage the bond sale. European satellite giant SES Global plans to sell a 300 million euro, 3-year floating rate note and a 500 million euro, 7-year bond, a banker familiar with the deal said on Monday.