Report CGNU To Sell Stake in Soc Gen

Britain’s Daily Telegraph reported that insurance giant CGNU has become disenchanted with is 7 percent holding in French Bank Société Générale, following failure to make further progress on an alliance, and will seek to dispose of part of its holdings.

CGNU rode to Soc Gen’s rescue in 1999 when the bank was being threatened by a three-way takeover involving Banque Nationale de Paris and Paribas. The insurer paid £500 million ($737.5 million) to increase its stake to 7 percent, and indicated at the time that it would pursue plans for an alliance to sell its products through Soc Gen’s branches in France.

Although CGNU offers general insurance through Soc Gen, talks to extend the links to life insurance, pensions and investment products have made little progress, leading the insurer to the decision to reduce its stake, and perhaps to seek another partner in France.