BNP Paribas SA To Cut Stake in Pargesa Holding SA With Bond Issue-Reuters

Reuters reported that BNP Paribas SA is to sell a sizeable chunk of its stake in Pargesa Holding SA via exchangeable bonds worth up to EUR 375 million. The bonds fall due in 2015 and will be redeemed with Pargesa shares, cash or both, with around 7.5%of Pargesa's capital allocated to the deal. The exchange price is expected to be between 20.0 and 27.5% above the volume-weighted average price of Pargesa shares. A maximum take-up would leave BNP Paribas SA with an estimated 3% stake in Pargesa Holding SA.