BNP makes pounds 23bn bid for SocGen and Paribas
Wednesday 10 March 1999
The bid, valued at an estimated 34.2 billion euros (pounds 23bn) comes amid Societe Generale's bid to buy Paribas in a move to create Europe's second- biggest bank, which had left BNP looking vulnerable to a takeover.
The Conseil des Marches Financiers, France's stock exchange regulator, said BNP had offered to buy all outstanding shares of both banks.
BNP was offering 11 of its shares for every eight Paribas shares and 15 BNP shares for every seven Societe Generale shares, the CMF said.
According to the CMF statement, BNP's offer was conditional on its ability to acquire at least a majority of each bank's outstanding shares. The offer would need approval by BNP's shareholders of the issue of the necessary shares to carry out the takeovers.
The regulator said the BNP board had pledged at a meeting yesterday to submit the necessary resolutions to its shareholders.
The CMF has asked the Paris bourse to suspend trade in the shares of all three banks.
Societe Generale and Paribas surprised financial markets in early February by announcing a 15bn euro merger that would create France's largest bank and fuel the global trend towards fewer but larger financial institutions.
BNP has been under pressure since then to strike an alliance of its own, but has insisted it would not be rushed into a deal for the sake of a deal.
The chairman, Michael Pebereau, told a news conference this month that BNP, which unveiled a better than expected 23 per cent increase in profits last year, would consider "opportunistic" external growth if it created shareholder value and did not endanger performance goals.
The bid for Societe Generale is at a 14 per cent premium to its closing share price of 145.5 euros, while the premium to Paribas' share price of 85.95 euros is 24 per cent.
- 1 Astrological signs are almost all wrong, as movement of moon and sun throws out zodiac
- 2 Dad eats daughter's weed brownies, thinks he's had a stroke
- 3 The West has it totally wrong on Lee Kuan Yew
- 4 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
Germanwings captain Patrick Sondenheimer tried to break into locked cockpit door 'with an axe' as plane was descending
Amanda Knox murder conviction: Italian court overturns verdict for US student and Raffaele Sollecito in the killing of Meredith Kercher
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Germanwings plane crash: Co-pilot Andreas Lubitz wanted to 'do something people would remember him for'
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...