Paperjam.lu

 Etienne Delorme (archives)

During a press conference, Luc Frieden did not reveal the name of the potential acquirer but said the Luxembourg state would take a minority stake in BIL. Talks are “at an advanced stage” and should be concluded by the end of the month, he added. Frieden stressed the bank is stable, profitable and customers should have no concerns over Dexia BIL deposits.

Facing huge Greek sovereign debt exposure, Dexia is being forced to sell the Luxembourg-based unit as part of a Franco-Belgian government bailout plan. The bank is also selling other healthy parts of its business, such as its asset management division--similarly based in the Grand Duchy--and its Turkish banking subsidiary.

Dexia is in “exclusive negotiations with an international group of investors” and the Luxembourg state over the sale of Dexia BIL, the company said in a press statement. However, Dexia’s board of directors will only take “a decision on a potential offer by the end of the exclusive period.”

The financial groups Foyer and Luxempart are potential suitors, paperJam.lu reported, although the firms have not publicly commented.

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