France Rejects Call for Buying Dexia’s French Units, Figaro Says

France’s shareholding agency head Jean-Dominique Comolli rejected Dexia SA (DEXB) Chief Executive Officer Pierre Mariani’s proposal during a Jan. 6 meeting that the government nationalize the lender’s French units Dexia Credit Local and Dexma, Le Figaro reported today, citing an unidentified participant at the meeting.

Nationalizing French units of the Franco-Belgian municipal lender is one of the possible solutions, said Michel Bouvard, chairman of the supervisory board of Caisse des Depots et Consignations, according to the French newspaper.

Conditions for a plan agreed in October in which Caisse des Depots was to take 65 percent of Dexia’s French municipal business aren’t there anymore, Bouvard said, according to Le Figaro. In the current depressed economic environment, Dexma’s takeover would cost Caisse des Depots about 2 billion euros ($2.54 billion) of shareholders equity, which would lead to “very stretched” financial ratios, the newspaper said.

To contact the reporter on this story: Francois de Beaupuy in Paris at fdebeaupuy@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

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