Eleventh hour boost for SocGen by CGU
Thursday 29 July 1999
Under French regulations CGU, which has 3.1 per cent of SocGen and a seat on its board, could take its stake to 10 per cent without further government approval. The group, however, was yesterday playing down suggestions it would be buying anything like 7 per cent, which would cost it nearly pounds 1bn to do.
Following the announcement, which came in a formal statement to the French stock exchange after trading closed yesterday, BNP immediately lodged a complaint with the French stock market regulator, the Commission des Operations des Bourses. BNP alleged that the timing of the move implied collusion between CGU, SocGen and Paribas, the bank with which SocGen is seeking to merge, and was a clear breach of the rules on concert parties. The move comes just as shareholders are preparing to cast their votes in the bidding war.
However, CGU, which has already publicly declared its opposition to the hostile BNP bid, said it was acting to protect its commercial relationship with SocGen. CGU has a joint venture with the French bank, Sogessur, to distribute its insurance products in France and had been discussing a number of other bancassurance ventures in France.
It said it had been forced to terminate those discussions because of the uncertainty surrounding SocGen's future, but would be keen to resume if their French partner succeeded in blocking BNP's bid.
Peter Foster, CGU's finance director said: "Any investment we did decide to make would, obviously, we hope, protect our interests." He added: "Quite frankly we believe that it's in our commercial interests that SocGen wins this particular battle and we would therefore support SocGen in that."
News analysis, page 19
- 1 Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
- 2 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 3 Bill Cosby: Isn’t it obvious why his accusers have stayed silent up until now?
- 4 Halle Berry takes ex-boyfriend Gabriel Aubry to court for allegedly trying to make daughter look less African-American
- 5 Isis propaganda image showing 'abuse of Muslim woman by soldiers' is actually taken from Hungarian porn film
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Ferguson decision: Tea Party website mocks Michael Brown's family over T-shirt typo
Michael Brown shooting: Ten things we know – or know better – now the Ferguson grand jury's work is over
Isis propaganda image showing 'abuse of Muslim woman by soldiers' is actually taken from Hungarian porn film
Derren Brown on the disappointment of coming out: 'It’s not that people react badly to it – they really don't care'
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Revealed: How the world gets rich – from privatising British public services
Exclusive: UK approved £7m Israeli arms sales in six months before Gaza conflict
iJobs Money & Business
£Attractive: Citifocus Ltd: High calibre individual with significant product d...
£Negotiable: Citifocus Ltd: Leading global bank seeks experienced credit analy...
£Attractive Package: Citifocus Ltd: High calibre individual with a high degree...
£Attractive: Citifocus Ltd: High calibre individual with superior academics an...