Good evening,

It’s The Carlyle Group versus Pacific Equity Partners in the battle for billion-dollar waste advisory and collections business Waste Services Group.

Street Talk understands London-based mid-market private equity group Livingbridge is edging closer towards signing a deal after collecting so-called “round 2A” reconfirmed non-binding offers in the UBS-run auction in late October.

It’s now calling for binding bids by the end of this month, sources said.

The auction has narrowed to a two-horse race between $US435 billion ($640 billion) US private capital juggernaut Carlyle and PEP’s buyout team, both of which are through to the final stage. Swedish private capital investor EQT Partners, which had Azure Capital on hand for advice, and Barrenjoey-advised Affinity Equity have both bowed out.

Read the full story tomorrow and more on the Street Talk page.

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Pan-Asian buyout firm Affinity Private Equity has side-stepped credit funds and targeted banks to secure debt financing for its $965 million acquisition of ASX-listed Healius′ Lumus Imaging business.

Australian shares tracked a positive lead from Wall Street on Friday as expectations of lower interest rates and hopes for more stimulus out of China lifted sentiment for risk assets.

Click here for the latest equity market wrap.