Paralysis in the bank lending market is threatening some of the world’s largest potential takeovers, with investors closely watching to see whether the proposed $700bn (€480bn) US financial rescue plan can stop certain transactions from falling apart.

Acquirers that would have used two or three banks to finance deals during the credit boom have for months been cobbling together groups of two to three times that size to allow lenders to spread risk. The latest financial market turmoil, which erased Lehman Brothers and Merrill Lynch from the global pool of lenders, has intensified concerns.