Bloomberg News

CDC, Poste Said to Discuss Dexia French Unit Takeover

October 05, 2011

(Adds the municipal unit details in fourth paragraph.)

Oct. 5 (Bloomberg) -- French state-owned companies La Poste and Caisse des Depots et Consignations will discuss today the possible takeover of Dexia SA’s French municipal-lending business, two people familiar with the matter said.

CDC’s supervisory commission will meet tonight under the direction of lawmaker Michel Bouvard to discuss the possibility of undertaking such a project, one of the people said, declining to be identified because the talks aren’t public. The board of directors of La Poste, the French postal service, will also meet tonight to discuss the matter, another person said.

Paris-based CDC is Dexia’s largest shareholder and is also an investor in La Poste. A spokesman for CDC declined to comment as did a spokeswoman at La Poste.

In France, the lender had 82.6 billion euros ($110.2 billion) of outstanding municipal and project-finance loans at the end of the first half. It had 3.8 billion euros of deposits.

Dexia, the Belgian-French lender bailed out by the two governments in 2008, will put its “legacy” division, which held 113 billion euros of assets at the end of June, into a “bad bank,” Belgian Prime Minister Yves Leterme told reporters in Brussels yesterday.

An important part of the solution to Dexia’s problems will be put forward tomorrow, French Finance Minister Francois Baroin said in an interview on RTL radio today.

--Editors: Vidya Root, Steve Rhinds

To contact the reporter on this story: Fabio Benedetti-Valentini in Paris at fabiobv@bloomberg.net.

To contact the editor responsible for this story: Vidya Root at vroot@bloomberg.net


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