BARCELONA/LONDON, Aug 21 (Reuters) - Canadian fund

Brookfield is in talks with banks to raise funds for its

possible takeover bid for beleaguered Spanish drugmaker Grifols

, two people familiar with the matter said on

Wednesday.

Those banks include Bank of America ( BAC ) and UBS

, one of the people said.

Grifols said last month it would study a preliminary offer

presented by Brookfield and the Grifols founding family, which

holds a stake of around 30% in Grifols, for a possible joint

takeover bid with the intent to de-list Grifols.

Bloomberg reported earlier on Wednesday that Brookfield has

asked banks, without identifying them, to backstop up to $10.6

billion to refinance Grifols' existing debt for a potential

take-private deal for the Spanish pharmaceutical firm, sending

Grifols' shares up as much as 6%.

The operation with Brookfield is advancing, the first person

said without elaborating.

Grifols, Brookfield, UBS and Bank of America ( BAC ) declined to

comment.

Since early January, short-seller fund Gotham City Research

has released several reports accusing Grifols of overstating

earnings and understating debt.

The accusations, which Grifols denies, have erased 40% of

the Barcelona-based company's market value.

Following the reports, Grifols, which makes medicine using

blood plasma, announced management changes and revised its

reported leverage higher after Spain's market supervisor

required that it change its calculations.

Grifols' net financial debt reached 9.4 billion euros

($10.46 billion) in the second quarter of this year, around 1.5

billion euros lower than in the prior quarter. The company has

focused on cutting debt since its business was severely hit at

the start of the COVID-19 pandemic due to a shortage of plasma.

($1 = 0.8989 euros)