Credit Agricole shares up 6.5 %

Shares in the French group jumped 6.5% after the announcement of the news, which was the biggest daily increase in nearly two years. For the last year the price of shares of Credit Agricole declined by nearly 12 percent, giving the bank a market capitalization of 25 billion. Euro notes Bloomberg.

Price questioned

The forthcoming deal could be valued at about 17 billion. Euros, told agency sources familiar with the matter later on Monday. According to the plan discussed each regional lenders will share repurchase of 25% of its capital, which Credit Agricole currently owns. The sources requested anonymity because of the confidentiality of the plans indicate that the financial group may be ready to announce the deal in March, although considering various options. Credit Agricole may also provide the majority of funding for regional banks with which they could buy back its shares, which means that the resulting directly from the transaction amount of cash may be less than these 17 billion. Euro. The final evaluation of the transaction may change and depends on various equity and debt components of the deal, the sources noted yet.

Brasak must announce strategic plans of Credit Agricole in 2020 to a meeting with investors on 9 March Nearly one third of the net profit of the financial institution for the first nine months of 2015 amounted to 2.63 billion. Euros comes from the ownership in local banks, recalls Bloomberg. In August, the group failed to gain the approval of regulators reorganization of its structure, which threw its shares down 10 percent. Last month Credit Agricole announced that the minimum level of capital adequacy Tier (Tier 1), which is an indicator of the financial stability of banks will be 9.5% as of mid-2016, and it intends to maintain "stable buffers" over the formal requirements of the European Central Bank, it will try to achieve a capital adequacy ratio of around 11% by the end of the year.