By Sudip Kar-Gupta
LONDON (Reuters) - Blue-chip French companies could provide ripe pickings for private equity funds despite the country's policy of defending firms from hostile bids, a leading Morgan Stanley investment banker said on Tuesday.
"Anything in the CAC-40 (French blue-chip stock market index) seems to be up for grabs at the moment," Simon Parry-Wingfield, co-head of leveraged finance at Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz), told the Reuters Investment Banking Summit in London.
"I have to believe that next year, a CAC-40 (company) will go to a financial sponsor," he said.
Takeover interest on the CAC-40 was rekindled earlier this month after French entertainment and telecommunications company Vivendi (VIV.PA: Quote, Profile, Research, Stock Buzz) said it had ended talks with U.S. private equity firm Kohlberg Kravis Roberts (KKR) over a possible buyout.
People familiar with the matter told Reuters that KKR made a 40 billion euro ($51.3 billion) bid approach to Vivendi but eventually broke off talks, partly due to complications over French tax law.
France has traditionally been keen to avoid takeovers that result in large-scale job losses in the country.
The French government set up an economic patriotism policy in 2005 following rumors that U.S. soft drinks group Pepsico (PEP.N: Quote, Profile, Research, Stock Buzz) could bid for French food group Danone (DANO.PA: Quote, Profile, Research, Stock Buzz).
The ruling right-wing government has encouraged state-owned bank the Caisse des Depots (CDC) to buy stakes in French companies. Continued...
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