Belgium, France to own almost 96 percent of Dexia

BRUSSELS Thu Nov 15, 2012 4:31pm IST

The Dexia tower is seen in La Defense, near Paris, November 8, 2012. Belgium and France will pay 5.5 billion euros ($7 billion) to take almost full control of Dexia in the hope this third bailout will be the last for the bank that was once the world's largest municipal lender. REUTERS/John Schults

The Dexia tower is seen in La Defense, near Paris, November 8, 2012. Belgium and France will pay 5.5 billion euros ($7 billion) to take almost full control of Dexia in the hope this third bailout will be the last for the bank that was once the world's largest municipal lender.

Credit: Reuters/John Schults

Stocks

   
Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

BRUSSELS (Reuters) - Belgium and France are set to own almost 96 percent of Dexia (DEXI.BR), with the free float slipping to 1.9 percent, after the two nations agreed to keep the lender afloat with 5.5 billion euros ($7.0 billion) of fresh funds.

Dexia's board has approved the plan, which will now be put to an extraordinary shareholder meeting on December 21, saying the states would buy new preference shares at 0.19 euro apiece.

Belgium will pay 2.9 billion euros and France 2.6 billion. Combined, they will receive 28.95 billion new preference shares.

There are currently about 1.95 billion outstanding shares, with Belgium and France already both holding stakes of 5.7 percent. French state bank Caisse des Depots et Consignations (CDC) is the largest shareholder with 17.6 percent and CNP Assurances, a CDC subsidiary, 3.0 percent.

The existing free float is 30.4 percent and it will drop to 1.9 percent after the capital injection.

The deal needs to be approved by European Union regulators. ($1 = 0.7856 euro) (Reporting By Philip Blenkinsop)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Monsoon Forecast

Monsoon Forecast

South Asia monsoon seen below-average to average in 2014 - WMO.  Full Article 

Solar Dispute

Solar Dispute

Green groups urge U.S. to drop solar trade case against India.  Full Article 

Oil Imports

Oil Imports

India to make May-July oil payments to Iran - sources.  Full Article 

Facebook Earnings

Facebook Earnings

Facebook Q1 revenue grows 72 percent on rising mobile ads.  Full Article 

DLF Shares

DLF Shares

DLF slides 3 percent, underperforms rivals.  Full Article 

Rice Exports

Rice Exports

India may cede top rice exporter spot under Southeast Asian price onslaught.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage