One of the first acquisition opportunities in France will be the privatization of Crédit Lyonnais, required by the EU as part of the Ffr125 billion ($22 billion) rescue package for the debt-ridden bank. A deadline for full privatization has been set for October 1999, but before this the bank must sell Ffr620 billion of assets. The sale of peripheral and foreign businesses has already begun, and most recently included Crédit Lyonnais Belgium and BfG Bank of Germany. There is debate over how the privatization of the core business will take place and whether it will begin this year as promised. The treasury insists that it will be this year and that there will be an announcement soon; most analysts think the decision will be delayed until 1999.
Crédit Lyonnais may be sold whole to the highest bidder or several banks could buy portions. A long list of banks and financial institutions, French and foreign, are keen to get a look-in. Last month, Axa, Paribas and Allianz of Germany all expressed an interest in minority stakes. Some feel the privatization will take place in stages, as selling all at once might not get the best price.