BNP Paribas: RBC reacts to ABN Amro rumour

(CercleFinance.com) - RBC on Friday renewed its "outperform" opinion and 65 euro target price on BNP Paribas shares in reaction to press reports that the French bank intends to buy Dutch bank ABN Amro.


According to the financial news agency, however, the Dutch government is not interested in giving up control of the banking group, preferring instead the scenario of targeted share sales.

From RBC's point of view, such a scheme is not likely to interest BNP Paribas, which would prefer to acquire all the shares in a takeover bid.

However, the Canadian broker considers that it would be surprising for the French giant to embark on such a large-scale operation, even if the sale of the Californian bank BancWest could give it the means to do so.

The broker also points out that the integration of ABN would be complementary to its activities, both in terms of geography and business lines.

In any case, RBC believes that BNP will prefer to use the funds from the BancWest deal to make "transformational" changes within the group, and not to expand into new territories.

BNP Paribas shares are up almost 2% this afternoon, while ABN Amro shares are steaming ahead, up over 8.5% just over an hour from close.


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