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French bank signs deal to acquire Bank of America's prime brokerage operations

French bank signs deal to acquire Bank of America's prime brokerage operations

BNP Paribas, France's largest bank, has signed a deal to acquire the prime brokerage operations of Bank of America, the company said Tuesday.
A statement by the French group said the accord, which must be approved by authorities, would put the bank among the principle prime brokers in the United States. It said the acquisition could be finalized by the second half of 2008.
"This is an activity of weak risk, using little capital and oriented toward client service," the statement said, adding that Bank of America has a client portfolio counting more than 500 hedge funds. The deal means that client portfolios would be transferred.
"This acquisition makes BNP Paribas one of the main prime brokers in the United States," the statement said.
The price of the deal was not made public.
Bank chief Baudoin Prot said the acquisition fits BNP Paribas' ambitions. "We are convinced this operation will be a source of creation of significant value for our new clients, the teams that will join us and our shareholders," Prot was quoted as saying in the statement.
On May 14, the French bank announced a 21 percent decline in first-quarter net profit, hit by the global credit crisis at its corporate and investment bank. However, BNP Paribas still beat expectations, posting a net profit for the quarter of euro1.98 billion (US$3.06 billion), down from euro2.51 billion in the same period a year earlier.


Updated : 2021-05-15 06:04 GMT+08:00