Axa plots Paribas break-up
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.AXA, THE insurance giant whose behind-the-scenes machinations precipitated France's banking bid war, is considering pushing for a revival of attempts to merge Paribas' investment banking operations with US investment bank Donaldson Lufkin Jenrette if, as looks increasingly likely, Banque Nationale de Paris wins control of Paribas.
The results will not officially be known until next week at the earliest but leaks yesterday pointed strongly toward BNP emerging with around 60 per cent of Paribas, but only 32 per cent of Societe Generale, the retail bank with which BNP has been keenest to merge. Michel Pebereau, BNP chairman, is expected to argue the stake gives it effective control of both banks, an argument which will be fiercely contested by Daniel Bouton, his opposite number at SocGen.
Jean-Claude Trichet, Governor of the Bank of France, is expected to summon the heads of the three French banks in the bid battle for talks early next week.He has made it clear that he will not allow a situation where the three banks end up with hostile blocking minorities in each other. However, French banking sources are doubtful whether he will have any more success in breaking the stalemate than he did when he attempted to intervene in the dispute in June.
Several foreign institutions, including BSCH, Spain's largest bank, and Britain's CGU are waiting in the wings, having both bought substantial stakes in Societe Generale in the past few weeks, despite warnings from Dominique Strauss-Kahn, France's Finance Minister, not to get involved.
Claude Bebear, chairman of Axa - a large shareholder in Paribas - has long been keen that Paribas find a US investment banking partner.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments