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Dexia Breakup May Make Investors Losers Holding Little Value

Dexia SA’s planned breakup to protect its Belgian depositors and its municipal-lending business in France may leave little value for its shareholders.

About 15 years after the French-Belgian bank was created in a merger and after about 100 billion euros ($133 billion) in public guarantees and funds kept the lender afloat in the 2008-2009 period, France and Belgium are trying to split up its assets in a manner designed to avoid injecting more capital.