Staff was told that a number of “high profile banks” have already approached the group about acquiring the units, a source told Delano. The sale is expected “in a matter of weeks” and definitely before the end of the year, the source said.
Dexia shares have slumped sharply in recent days and the ratings agency Fitch downgraded its debt profile, largely on fear of exposure to Greek sovereign debt.
Also in recent days Belgium’s prime minister, Luxembourg’s finance minister and French officials have all pledged financial backing to the retail units operating their countries.
A spokeswoman for the bank could neither confirm nor deny the report.
UPDATE: Dexia BIL employees have been told on Tuesday afternoon to inform clients the unit will be sold. Staff also heard that Dexia will spin-off toxic assets into a ‘bad bank’ backed by the Belgian and French states, as Belgian finance minister Didier Reynders mooted to the Brussels press earlier in the day.
UPDATE: Late Tuesday afternoon a spokeswoman for Dexia--once again neither confirming nor denying reports of a sale--said the bank’s management in Luxembourg was “looking for a long-term solution” for Dexia BIL. The spokeswoman said such a solution would allow the bank to “continue to play a key role in Luxembourg and internationally” and would be “in the interests of its clients and its employees.” She stressed Dexia BIL held Tier 1 capital of more than 20 percent, well in excess of the amount required by regulators.
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