Two into three won't go
Article Abstract:
Banque Nationale de Paris (BNP) has bid for both Paribas and Societe Generale, and the bids have been rejected by both banks, which had planned to merge with each other. Bank of France governor, Jean-Claude Trichet, has sought an agreement between the three banks, since he is concerned about the possible impact of a hostile takeover. Closing branches is not easy in France, due to regulations, so returns cannot be increased as easily as in the US. A foreign bank could become interested, though this would be alien to French perceptions.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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Gigantisme, quand meme
Article Abstract:
Societe Generale and Paribas are combining to create SG Paribas. There will be few compulsory layoffs in France, since Paribas does not have a branch network, and this is an advantage due to French labor laws. Cost savings are hoped for from investment banking, and further expansion is likely. Credit Lyonnais is a possible target and is scheduled for privatization in spring 1999. Bank mergers may be easier within national borders, but a European cross-border deal appears likely due to European monetary union.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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Yes, but who won?
Article Abstract:
Banque Nationale de Paris (BNP) has acquired control of Paribas, but not Societe Generale. BNP had sought to acquire both banks and merge the three into one large bank. Societe Generale, meanwhile, had sought a merger with Paribas. BNP holds a stake in Societe Generale, which has to decide on its new strategy after the failure of its bid. BNP, meanwhile, has to decide on its future with Paribas, which BNP had been less keen to acquire than it had wanted to buy Societe Generale.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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