FRANKFURT, Nov 26 (Reuters) - Commerzbank, the German bank running the sale of generic-drug supplier Ratiopharm, has pledged with BNP Paribas to make loans to private-equity suitors in the auction, stoking competition among bidders.
Ratiopharm's parent holding VEM, a key investment vehicle of industrial heir Ludwig Merckle, said on Thursday it mandated the two banks to ,"organise a staple financing package to support private-equity bidders in the process".
Staple financing is typically used to allay concerns from prospective buyers about the financing of an acquisition, with banks effectively committing to provide debt before a deal is agreed.
Buyout firms that have placed bids for Ratiopharm include TPG, Advent in collaboration with Goldman Sachs, Permira, KKR and Sweden's EQT, several people familiar with the procedure have told Reuters.

The pre-arranged financing package will help them compete with healthcare-industry bidders, which sources said include Israel's Teva, Mylan and Pfizer of the United States, Sanofi-Aventis of France, China's Sinopharm and Actavis of Iceland.
EQT, co-founded by the Wallenberg family's Investor AB vehicle, has enlisted the help of former Ratiopharm CEO Claudio Albrecht to advise on its bid for the company, a source familiar with the process said. EQT declined to comment.
Suitors have been asked to confirm their first-round, non-binding offers by Dec. 3, two sources close to the deal said on Wednesday.
VEM owner Ludwig Merckle is selling Ratiopharm as part of concessions made by his late father to creditor banks. Commerzbank and Royal Bank of Scotland are managing the sale.

(Reporting by Ludwig Burger in Frankfurt, Simon Meads and Zaida Espana Morales in London; Editing by Jon Loades-Carter) Keywords: RATIOPHARM/FINANCING (ludwig.burger@thomsonreuters.com; +49 69 7565 1311; Reuters Messaging: ludwig.burger.reuters.com@reuters.net)

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