Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Israeli strikes on Gaza as seen on social media

Read more

DEBATE

Africa's Newest Failed State: How to Stop Civil War and Famine in South Sudan? (part 2)

Read more

DEBATE

Israel and the Palestinians: How to Break the Cycle of Violence?

Read more

DEBATE

Africa's Newest Failed State: How to Stop Civil War and Famine in South Sudan?

Read more

AFRICA NEWS

Somalia : Al Shebab attack on presidential palace

Read more

FOCUS

Sharia law to be enshrined in British legal system?

Read more

ENCORE!

How a comedy dud became one of France's biggest box office hits

Read more

AFRICA NEWS

Kenya: Clashes at anti-government rally in Nairobi

Read more

WEB NEWS

ISIS leader challenged over expensive-looking wristwatch

Read more

  • Argentina beat the Netherlands on penalties to reach World Cup final

    Read more

  • Foiled French jihadist ‘targeted Louvre and Eiffel Tower’

    Read more

  • Obama in Texas to urge action on child migrant crisis

    Read more

  • Iraq’s heritage 'in danger' from ISIS militants

    Read more

  • Froome crashes out of Tour de France

    Read more

  • South Sudan independence heroes ‘have lost their way’

    Read more

  • Dozens of blindfolded bodies found south of Baghdad

    Read more

  • Israel pummels Gaza in retaliation for Hamas rocket attacks

    Read more

  • Alps Murder wife had ex-husband who died on same day

    Read more

  • Both candidates say they won Indonesian presidential election

    Read more

  • Brazil players should never wear 'sacred uniform' again, press says

    Read more

  • Exiled Syrian opposition elects new president

    Read more

  • China’s first Tour de France cyclist chases his dream

    Read more

  • Ukraine imposes new conditions on peace talks with pro-Russia rebels

    Read more

  • Sarkozy's UMP party 'almost €80 million in debt'

    Read more

  • Typhoon Neoguri turns deadly as it batters Japanese islands

    Read more

Business

Source says top French banks to complete merger by Feb 26th

©

Video by Aurore Cloé DUPUIS

Latest update : 2009-02-15

French banks Caisse d'Epargne and Banque Populaire, who announced merger plans last October, are expected to make public the completion of their merger on February 26th, according to a source close to the talks and the press.

AFP - Top French banks Caisse d'Epargne and Banque Populaire are expected to announce a merger to form the country's second biggest bank on February 26, a source close to the talks said Saturday.

"They should announce their merger on February 26," the source said, confirming a report in Le Figaro newspaper. "Not everything has been settled, but talks continue to progress."

Both banks refused to comment on the report Saturday.

Le Figaro said that French President Nicolas Sarkozy's administration had given the banks until February 26 -- when they are due to announce their annual results -- to reach an agreement.

Failing that, the state would step in, possibly taking up to 30 percent of the future bank, the paper said.

The tie-up would create the second biggest banking group in France with combined equity capital of 40 billion euros (55 billion dollars), Caisse d'Epargne had said in October.

The specialist Mediapart website meanwhile predicted the two banks would announce record losses, of nearly two billion euros for Caisse d'Epargne and some 300 million for Banque Populaire.

The two sides began negotiations in November after approving merger plans in October.

They had been discussing a possible merger for two years but were forced into action by the financial meltdown rattling the European banking sector.

Banque Populaire and Caisse d'Epargne are mutual banks, partly owned by their depositors, and already jointly control the investment bank Natixis, whose shares have been ravaged by the credit crunch.

Mediapart said Natixis would report losses of between 2.5 billion and 3.0 billion euros.

Both Figaro and Mediapart said the government wanted to see a new management at the top of the merged bank to give confidence to the markets.

Date created : 2009-02-15

Comments

COMMENT(S)