DEXIA BUYS 40% OF ITALY'S CREDIOP
Wednesday 12 March 1997
Franco-Belgian bank DEXIA said it had agreed a long-term strategic cooperation pact with Italy's banking group SAN PAOLO and would take a 40% stake in Italy's CREDIOP. In a statement, Dexia said the price would be between FF1.6 and 1.9 billion, the final price depending on the Crediop performance in the next three years. Dexia, created in October out of the merger of Credit Local de France and Credit Communal de Belgique, said it planned to take a one percent stake in Institutio Bancario San Paolo di Torino during its privatisation later in 1997. The transaction will be financed by Dexia's own funds and will be positive for results and profitability from 1997, Dexia said in the statement. Dexia is already active in the UK, Germany, Spain, Austria and Sweden. It added that Crediop SpA has a balance sheet total of FF110 billion and shareholders assets of FF3.3 billion, making it the biggest local sector bank after Cassa Depositi e Presititi. Crediop recently unveiled an 11-month profit of 71. 5 billion Lire. It has been under San Paolo ownership since February 1, 1996. Dexia has a balance sheet total of over FF1,000 billion and shareholders' funds of FF40 billion.