French state holds 17pc of BNP Paribas

The French government now holds a 17-percent stake in banking giant BNP Paribas after a capital increase last year worth 5.1 million euros (6.83 billion dollars), the market regulator said on Tuesday.
Last year BNP Paribas issued 187 million preference shares, which do not carry voting rights, in exchange for the fresh funds to help it cope with the worst global financial crisis since the 1930s.
The government accordingly became the single largest shareholder with a 17.03 percent stake in the bank, behind insurance group Axa with 4.83 percent.
The Financial Markets Authority (AMF) said the state acquired the stake via its October support plan for the banks which were under intense pressure after the September collapse of US investment banking giant Lehman Brothers.
The government took preference shares, rather than ordinary stock with voting rights, to avoid any impression that it was going to have a say in management decisions.
BNP Paribas reported a 2008 fourth-quarter loss of 1.37 billion euros as the financial system reeled under the impact of Lehman's collapse.