BNP Paribas Teases Credit Agricole Over Stake In Credit Lyonnais

BNP Paribas is still pondering whether to launch a counter-bid for Credit Lyonnais, which is being sold to Credit Agricole for Euros 19.5 billion. Last year, BNP built up a stake of over 16 per cent in Lyonnais before the Agricole offer was made in December. Managing director Baudouin Prot indicated earlier this week that BNP Paribas would sell its stake to Credit Agricole, but he added that BNP would first wait for the decision of the Conseil d’Etat towards the proposed consolidation before confirming its position. The high court is expected to rule on whether or not to lift the restrictions set by the French banking regulator on the merger. In an interview on French radio, Prot said that BNP Paribas favours what he called a “contribution scenario,” meaning that it will offer its 16.3 per cent stake in Lyonnais to Credit Agricole. Given current share prices, he explained, BNP Paribas stands to make a significant capital gain.