Business Daily from THE HINDU group of publications
Friday, May 01, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Friday, May 01, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Money & Banking
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Mergers & Acquisitions Markets - Mutual Funds Our Bureau Chennai, April 30 BNP Paribas’ takeover of Fortis Bank will have its echo in India, say sources in the know. BNP Paribas, the French bank, has a joint venture in India with Sundaram Finance of Chennai for an asset management company that runs mutual fund schemes. By virtue of the takeover of Fortis in Belgium, BNP Paribas will end up with two mutual fund companies in India — the joint venture with Sundaram Finance and Fortis. This is neither allowed by law, nor by the joint venture agreement. As such, BNP Paribas may have to exit either the joint venture with Sundaram Finance (Sundaram BNP Paribas Mutual Fund) or Fortis Mutual Fund. Exiting the joint venture will be difficult, as it would entail payment of heavy severance compensation to Sundaram Finance. Therefore, it remains to be seen what BNP decides to do. Alternatively, the French banking major may have Sundaram BNP Paribas to takeover the management of the mutual fund schemes of Fortis Mutual Fund, sources said. More Stories on : Mergers & Acquisitions | Mutual Funds | Foreign Banks
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