Bloomberg News

BNP, Natixis Rise on Report of French Stake Contingency Plan

October 06, 2011

(Adds comment by French government official in second paragraph.)

Oct. 6 (Bloomberg) -- BNP Paribas SA, Credit Agricole SA and Natixis SA rose in Paris trading after Le Figaro said the French government is working on a contingency plan to take stakes in the country’s lenders.

A French government official, who declined to be identified because he’s not authorized to speak to the press, rejected the report, calling it false.

Credit Agricole climbed 5.6 percent to 5.45 euros as of 9:44 a.m. in Paris, while BNP advanced 5.7 percent. Shares of Natixis, the investment-banking unit of France’s second-largest bank by branches, advanced 8.5 percent to 2.50 euros, the biggest percentage gain in the Stoxx Europe 600 Index.

The country’s state holding agency is working on the plan, which would involve two or three unnamed banks, the newspaper said, citing a person familiar with the matter that it didn’t identify. Le Figaro added that the country’s economy ministry denied that any refinancing of banks was being considered.

--With assistance from Mark Deen in Paris. Editor: James Hertling

To contact the reporter on this story: Keith Campbell in London at k.campbell@bloomberg.net

To contact the editor responsible for this story: Keith Campbell at k.campbell@bloomberg.net


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