American Hospital Supply is arranging a credit line.

The company, trying to complete its merger with Hospital Corp. of America while fending off an unwanted takeover offer from Baxter Travenol Laboratories, said it is arranging a $3-billion line of credit. American said the credit line would be available for two years from a syndicate of domestic and international banks. The corporation said the credit would be used for “general corporate purposes,” but observers said it probably would be used to defend against Baxter Travenol’s takeover attempt. Separately, American said it could not confirm a published report that investor Carl C. Icahn has bought up to 5% of its stock.