European Union regulators will probe Luxembourg’s sale of Dexia Banque Internationale a Luxembourg SA and will investigate a Belgian state guarantee for the cooperatives of Dexia SA (DEXB) shareholder Groep Arco.
The European Commission opened in-depth investigations to check that the sale of Dexia BIL by the Luxembourg government “is conducted on market conditions” and that a Belgian deposit guarantee program for financial cooperatives such as Arco didn’t give those organizations an unfair advantage over other investors, according to an e-mailed statement today.
Luxembourg plans to sell 90 percent of Dexia BIL’s retail and private banking businesses and retain the remaining 10 percent. Regulators said they did not have enough information to assess the value of the businesses “given that the proposed sale is the result of exclusive negotiations with one private investor.”
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