Dubai International Said to Plan Challenge to Oaktree Takeover

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Dubai International Capital LLC the fund owned by Dubai’s ruler, plans to sell bonds for the cash it needs to prevent Oaktree Capital Management LLC from seizing its Almatis unit.

Dubai is planning to repay senior lenders to the German alumina-products maker through a sale of high-yield bonds, two people familiar with the situation said. Two-thirds of senior lenders to Almatis have already voted in favor of Oaktree’s proposal to take over the company in exchange for writing down more than half of its $1 billion of debt.

Dubai is seeking to issue between $600 million and $700 million of senior and subordinated bonds in Almatis, said the people, who declined to be identified because the information is private. The fund is in talks with six banks regarding underwriting assignments, the people said.