BHF Bank Battle

Creating a Franco-German Banking Giant

BHF-ActionPress
BHF Bank is at the center of a major takeover battle.
  • Why it matters

    Why it matters

    BHF Bank was once a major name in German private banking, but repeated takeover battles have undermined it over the past few years.

  • Facts

    Facts

    • French bank Oddo & Cie has offered €5.75 per share to take over BHF Kleinwort Benson, above the €5.10 per share offer of Chinese investor Fosun.
    • Oddo & Cie already holds a 21.6 percent of the bank and says it already has commitments from two major investors that will bring its stake above 50 percent.
    • Fosun also owns around a fifth of BHF and has been battling for months to launch a hostile takeover of the German bank.
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    Audio

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French bank Oddo & Cie has made a rival bid worth €760 million, or $806 million, to buy German-British banking group BHF Kleinwort Benson, topping an offer from Chinese investor Fosun.

The offer from Paris-based Oddo, which already holds a 21.6-percent stake in BHF, had been considered for a number of months after Fosun’s own hostile bid was met with stiff resistance from some investors.

By entering the fray, Oddo hopes to create a Franco-German banking competitor for private banking clients in Europe and one of the largest asset managers on the continent.

“The alliance would be a milestone in the development of the group,” Oddo chief executive Phillippe Oddo said in a statement.

Fosun, which also owns around a fifth of BHF, offered in July to buy the Frankfurt-based bank for €5.10 per share or €675 million in total. Oddo’s bid is worth €5.75 per BHF share, compared with a closing price of €5.08 on Thursday. Regulators halted share trading on the Brussels Stock Exchange on Friday, pending Oddo’s offer.

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