Commerzbank buys Credit Lyonnais stake

GERMANY'S COMMERZBANK yesterday said that its management board agreed to accept the French government's offer of a 4 per cent stake in the planned privatisation of Credit Lyonnais.

Martin Kohlhaussen, Commerzbank's chief executive, said the two banks planned to cooperate on operations in France, Germany and internationally, with the possibility of pulling Lyonnais into Commerzbank's existing network.

"The planned cooperation should be as extensive as possible," Commerzbank said. Dennis Phillips, spokesman, said the bank expected to pay about 350m euros for the stake and that it would not need to raise additional capital for the purchase.

Credit Lyonnais' non-voting shares, which account for 10 per cent of equity, were suspended from trading yesterday. The initial offering of the bank began at a 16 to 27 per cent discount to the price on the Parisian bourse.

The French government said on Saturday that shares in Credit Lyonnais, the country's fifth-largest bank, will be priced between 22.5 euros ($23.54) and 26.2 euros each in the initial offering of about 80 per cent of the company, valuing the state bank at 41-48 billion francs. Non-voting shares, which are to be swapped for shares in the IPO, closed last Friday at 31 euros.

Core shareholders with up to 4 per cent in the bank, such as Commerzbank, are to pay a premium of 1.9 per cent over the final share price. Core shareholders with a stake larger than 4 per cent must pay a 3.5 per cent premium.

The two banks could establish cooperation in their private banking operations, capital market operations and operations with mid-size firms.

The French government promised to sell Lyonnais, which teetered on the brink of bankruptcy, after a breakneck expansion plan in the early 1990s went wrong, in return for European Union approval for huge bailouts.

Start your day with The Independent, sign up for daily news emails
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Digital Optimisation Executive - Marketing

£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...

Recruitment Genius: Financial Reporting Manager

£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...

Recruitment Genius: Payments Operations Assistant

£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

Recruitment Genius: Telephone Debt Negotiator

£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

Day In a Page

Sepp Blatter resignation: The beginning of Fifa's long road to reform?

Does Blatter's departure mean Fifa will automatically clean up its act?

Don't bet on it, says Tom Peck
Charles Kennedy: The baby of the House who grew into a Lib Dem giant

The baby of the House who grew into a Lib Dem giant

Charles Kennedy was consistently a man of the centre-left, dedicated to social justice, but was also a champion of liberty and an opponent of the nanny-state, says Baroness Williams
Syria civil war: The harrowing testament of a five-year-old victim of this endless conflict

The harrowing testament of a five-year-old victim of Syria's endless civil war

Sahar Qanbar lost her mother and brother as civilians and government soldiers fought side by side after being surrounded by brutal Islamist fighters. Robert Fisk visited her
The future of songwriting: How streaming is changing everything we know about making music

The future of songwriting

How streaming is changing everything we know about making music
William Shemin and Henry Johnson: Jewish and black soldiers receive World War I Medal of Honor amid claims of discrimination

Recognition at long last

Jewish and black soldiers who fought in WWI finally receive medals after claims of discrimination
Beating obesity: The new pacemaker which helps over-eaters

Beating obesity

The new pacemaker which helps over-eaters
9 best women's festival waterproofs

Ready for rain: 9 best women's festival waterproofs

These are the macs to keep your denim dry and your hair frizz-free(ish)
Cycling World Hour Record: Nervous Sir Bradley Wiggins ready for pain as he prepares to go distance

Wiggins worried

Nervous Sir Bradley ready for pain as he prepares to attempt cycling's World Hour Record
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific