Saving banks consortium Groupe Caisse d'Epargne and French property company Nexity have begun 'exclusive negotiations' to set up a major property group by July 2007, with Groupe Caisse d'Epargne merging its Credit Foncier real-estate financing unit with Nexity.
Saving banks consortium Groupe Caisse d'Epargne and French property company Nexity have begun 'exclusive negotiations' to set up a major property group by July 2007, with Groupe Caisse d'Epargne merging its Credit Foncier real-estate financing unit with Nexity.
The two firms are expected to sign an agreement by April 30, when the period agreed for negotiations ends. The companies said the new group will remain listed and open to the public, with Alain Dinin as a president and Caisse d'Epargne as its core shareholder.
However, the plan is likely to be blocked by France's AMF stock-market regulator, French newspaper La Tribune said. The AMF may refuse to allow Caisse d'Epargne to take a 51.5% stake in Nexity without making a takeover bid for the rest of Nexity's shares.
French market rules demand that any company which buys more than a third of another company must make a bid for the rest of the shares. The merger needs a waiver from the AMF as Caisse d'Epargne cannot afford a takeover bid for Nexity, La Tribune said.