Blackstone Group LP and other investors that have an option to bid for Italian telephone company Wind SpA will probably receive a 6.5 billion euro ($8.4 billion) buyout loan from Citigroup and other leading banks.

The deal is expected to be the largest ever on European market, topping a 4.3 billion-euro funding in 2003 for BC Partners and other investors to buy Telecom Italia SpA’s directory unit.

Citigroup, Providence Equity Partners, Permira and units of Goldman Sachs Group Inc. are expected to be the main investors for the New York-based Blackstone.

``Banks and money managers haven’t been able to generate returns on investment-grade loans and bonds so they are pushing into junk. They’ve got to put their money to work,’’ said Paul Watters, head of loan and high-yield ratings at Standard & Poor’s in London.

Blackstone offers 11.5 billion euros for Italy’s No.2 fixed-line phone company Wind. The company declined to comment on the matter.