BPCE says it is not intending to file draft tender offer for Natixis shares

Credit: REUTERS/Charles Platiau

Adds detail, source

PARIS, July 17 (Reuters) - French co-operative lender BPCE said on Friday that it did not intend to file a tender offer for Natixis shares after a media report said that it had explored buying the 30% of Natixis SA CNAT.PA it does not already own.

The Financial Times had reported that the deal was at an early stage and that other options were also being considered with no guarantee that a bid for Natixis shares would occur.

"Following recent press rumours, BPCE indicates that it does not intend to file a draft tender offer on the Natixis shares, it being reminded that BPCE regularly conducts strategic analysis on possible changes in the organisation of the group," BPCE said in a statement.

Natixis Chief Executive Francois Riahi has had a bumpy road since his appointment as CEO in mid-2018.

The bank booked equity derivatives trading losses in late 2018, faced concerns over liquidity and governance at one of its asset management affiliates in 2019 and reported a quarterly loss this year, hit by a spike in provisions for bad loans and frauds, mainly in energy and natural resources.

Following the losing streak that tarnished Natixis' image among investors, the group has been working on different hypotheses that explore the future of insurance and payments businesses of the bank, a source familiar with the matter said.

It is possible that this potential transformation could end up in a buy-out of minority shareholders, but there was nothing concrete and precise in the pipeline, the source added.

Natixis declined to comment, BPCE did not reply to requests for comment.

BPCE, which is unlisted, had worked with advisers on a buyout plan in recent months, the FT report said.

Analysts at Deutsche bank and UBS expect Natixis to report on Aug. 3 a loss in second quarter net income due to higher loan-loss provisions.

EXCLUSIVE-Natixis plans shake-up to focus on greener lending

(Reporting by Maya Nikolaeva; editing by John Irish and Toby Chopra)

((john.irish@thomsonreuters.com; 0033-1 49 49 53 42;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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