French bank BPCE to launch takeover bid for remaining 30pc of Natixis

PARIS: French bank BPCE is looking to launch a takeover bid for the remaining 30% stake in domestic peer Natixis it does not already own with a view to delisting and restructuring the lender, a source familiar with the matter told Reuters.

BPCE is working with advisers on a takeover proposal which is expected to be disclosed soon, the source said.

A second source, speaking on condition of anonymity, said BPCE is likely to pursue a possible break-up of Natixis after taking full control of the bank and might shed its asset management business and payments processing operations.

BPCE and Natixis declined to comment.

BPCE, a cooperative bank, is the second biggest retail bank in France behind Credit Agricole, while Natixis is France's No. 4 listed bank.

Shares in Natixis - which was listed on the Paris stock market in December 2006 at a price of 19.55 euros - were suspended from trading on Tuesday ahead of a statement, the French bank said.

The shares closed up 6.9% at 3.70 euros on Feb. 8, with traders citing speculation of an upcoming restructuring and dealers buying the stock in anticipation of decent results from Natixis due on Feb. 11.

Natixis shares plummeted in March 2020 following the onset of COVID-19, shedding more than 50% compared to where they were at the start of 2020, as the pandemic hit.

After reporting two quarterly losses Natixis axed CEO Francois Riahi last August citing "strategic differences" and replaced him with Nicolas Namias, head of group finance and strategy at BPCE.

When taking the reins of Natixis, Namias played down reports that BPCE might buy the bank out, and was due later this week to announce a strategic review of the business.

Natixis' asset management unit is highly exposed to the US market and would be a logical disposal candidate for BPCE, which is expected to retain control of Natixis' corporate and investment banking business as well as its private banking unit, the second source said.

Natixis has spent much of the past 18 months dealing with heavy outflows at H20, a boutique fund management business it owned, before confirming this month that it would sell the business to its management team.