Czech billionaire Daniel Kretinsky neared victory on Monday in a battle to take over French retailer Casino after rival bidders pulled out of the race, paving the way for a deal to rescue the debt-laden group and save it from bankruptcy, KFGO reported. Kretinsky has been vying to take control of Casino against the 3F Holding group, led by telecom entrepreneur Xavier Niel, investment banker Matthieu Pigasse and businessman Moez-Alexandre Zouari.
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In the race to win control for debt-laden supermarket operator Casino Guichard-Perrachon, the two bidders are working on how to charm creditors, the company and the government after laying out their initial plans, Bloomberg News reported. The groups — 3F, formed by banker Matthieu Pigasse, telecom billionaire Xavier Niel and retail entrepreneur Moez-Alexandre Zouari, and a rival composed of Czech investor Daniel Kretinsky and Marc Ladreit de Lacharrière’s Fimalac — have until Friday to improve their bids.
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Casino shares fell as much as 40% on Wednesday after the cash-strapped French retailer said the injection of new capital that would result from two rival offers to rescue the group meant that existing shareholders would be wiped out, Reuters reported. Czech billionaire Daniel Kretinsky is leading a 1.35 billion-euro investment plan to rescue Casino, details of the two offers released after the market close on Tuesday showed, dwarfing a rival proposal backed by telecoms maverick Xavier Niel.
The French economy is on course to avoid a recession this year while inflation pressures ease though growth and will only gradually pick up in the coming two years, the central bank forecast on Wednesday, Reuters reported. In its quarterly outlook, the Bank of France said the euro zone's second-biggest economy would grow 0.1% in the current quarter from the previous three months and 0.2% in both the third and fourth quarters.
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A European derivatives committee said on Monday that a bankruptcy credit event has not occurred in relation to France's debt-laden Casino (CASP.PA), dashing investor hopes for a payout on credit insurance linked to the retailer, Reuters reported. The EMEA Credit Derivatives Determination Committee (CDDC) met on Friday to discuss the question raised by an investor, it said on its website.
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An investor has raised a question with a CDS panel on whether a bankruptcy credit event has occurred in respect to Casino Guichard Perrachon, potentially starting the process for a payout on the company's credit default swaps, Reuters reported. The French retailer announced on Friday it entered court-backed talks with creditors.
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The French economy is set to grow around 0.2% in the first quarter of 2023, up from around 0.1% forecast last month, the central bank said on Tuesday, as activity in three main sectors picked up steam, Reuters reported. The Bank of France said companies polled in its monthly business sentiment survey reported activity in March was stronger than in February in the industrial sector, as well as in services and in construction. The improving sentiment comes despite widespread strikes against pension reform that have weighed on transport and energy.
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European planemaker Airbus is negotiating a new round of plane orders with China, coinciding with a visit by French President Emmanuel Macron to the economic superpower later this week, government and industry sources said, Reuters reported. The potential deal for dozens of jets comes amid worsening relations between Washington and Beijing, which have seen China's usually balanced airplane imports tilt towards Airbus in recent years.
French authorities on Tuesday searched the Paris offices of five banks, including Societe Generale, BNP Paribas and HSBC, on suspicion of fiscal fraud, part of a broad European probe into the dodging of dividend tax payments, Reuters reported. Societe Generale confirmed the searches, declining further comment. The other banks concerned did not immediately reply to requests for comment. The French prosecutors' actions are the latest to hit global banks over the dividend tax fraud scheme as similar investigations have been conducted in Germany and other European countries.
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French unions are holding a 10th day of nationwide protests Tuesday to try to force President Emmanuel Macron to hit the brakes on his unpopular pension reform and open fresh talks, Bloomberg News reported. As concerns grow over mounting violence, labor organizations have blamed the government for creating an explosive situation. Marches last Thursday ended in chaos, with hardcore fringes clashing with riot police. Further scuffles have taken place in the days since.
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