BNP Paribas bondholders slam 3 bln euro offer
LONDON, Jan 27 (Reuters) - A group of BNP Paribas
<BNPP.PA> bondholders has slammed an offer by the French bank to
buy back 3 billion euros ($3.95 billion) of hybrid debt, saying
the offer was too low and an attempt to bully investors to
quicklyaccept.
The group, which includes York Capital Management, Oceanwood
Capital Management, Tree Top Asset Management and GLG Partners,
claims to represent more than 43 percent of the instruments
covered by the offer.
Many European banks aretrying to boost capital by buying
back debt at below its full value, and on Thursday BNP said it
wanted to buy back 3 billion euros of hybrid equity linked
securities, known as CASHES, at 45-47.5 percent of its par
value.
"We are disappointedthat you have presented your bond
holders with an offer price that substantially fails to reflect
the true value of the BNP credit and the strong structural
features of this specific instrument," the bondholders said in a
letter sent to the BNPParibas board, dated Jan. 26 and seen by
Reuters. The letter is signed by nine firms, who say they
represent 43 percent of the CASHES.
BNP Paribas did not immediately return calls for comment.
($1 = 0.7601 euros)
(Reporting by Steve Slater and Tommy Wilkes)
((
[email protected])(+44)(0)(20 7542 4367))
Keywords: BNPPARIBAS/BONDS
17:08-27/01