Rothschild unifies French, English branches

17th July 2007, Comments 0 comments

PARIS, July 17, 2007 (AFP) - The French and English branches of the fabled Rothschild banking family, separated since the 19th century, are to unify their shareholdings under a single holding company, the French group Paris-Orleans, it was announced here Tuesday.

PARIS, July 17, 2007 (AFP) - The French and English branches of the fabled Rothschild banking family, separated since the 19th century, are to unify their shareholdings under a single holding company, the French group Paris-Orleans, it was announced here Tuesday.

Paris-Orleans said in a statement it would acquire a 50 percent stake held by the English branch of the family in Concordia BV, a holding company created in 2003 under an initial alliance.

The transaction would cost Paris-Orleans 446 million euros (615 million dollars), with payment made 50 percent in shares and 50 percent in cash.

Sir Evelyn de Rothschild, 75, the former chief of the British branch, and still its main shareholder, will leave the shareholding in the new entity to his children.

"The structure of the Rothschild banking group is to be simplified through this transaction," Paris-Orleans said.

"A new family company owned jointly by the French and English branches of the Rothschild family (will) secure, through Paris-Orleans, the unity and long-term independence of the banking group."

The statement described the move as "a logical step given the level of integration of the Rothschild banking group and its global development strategy."

After the issuing of the new shares the stock market capitalisation of Paris-Orleans will be around 1.2 billion d'euros, the group said.

Paris-Orleans shares were suspended on Tuesday on the Paris stock exchange pending the announcement and will resume trading on Wednesday, the company said.

It said the capital increase necessary for final completion of the transaction is subject to approval by an extraordinary general meeting of shareholders, which should take place in the last quarter of this year or the first quarter of 2008.

The transaction is also subject to approval from the regulatory banking and tax authorities.


Copyright AFP

Subject: French news

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