German industrial group Linde risks a three-notch downgrade to junk status if it continues a £7.6bn (€11bn) unsolicited all-cash offer for UK rival BOC.

Rik Fennema, credit analyst at Dresdner Kleinwort Wasserstein in London, said in a note this morning: "We see significant rating pressure if the deal goes through. Linde's all-cash approach signals a significantly more aggressive financial policy, and we see a very material weakening in credit ratios.