Posted Monday, June 30, 2008, 7:37 p.m., EST

Senior lenders have not approved Spectrum Brand Inc.’s proposed sale of United Pet Group to Salton Inc., Sprectrum reported this morning.

The deal, which would see Salton’s Applica Pet Products business join United, is contingent on the lenders approval. Spectrum says it will continue to seek their approval and that the purchase agreement signed by Spectrum and Salton remains in full force.

Financial analyst Josepth Altobello of Oppenheimer & Co. told investors that Spectrum may need to agree to a higher consent fee to get its lenders to accept the deal, the Associated Press reported.

Late last week, another analyst, Connie Maneaty of BMO Capital Markets, downgraded Spectrum’s stock for the second time since the deal was announced in May, noting that the deal would leave Spectrum with little for investors to cheer about and that the remaining businesses were especially “sensitive to volatile commodities.” <HOME>