Cerberus and a rival investment firm have told HSBC (0005) they would buy its French retail arm for a symbolic one euro provided the British bank ploughs more than 500 million euros (HK$4.52 billion) into the business, sources told Reuters. HSBC is working with Lazard to sell its 270 retail branches in France as part of chief executive Noel Quinn’s strategy to slash costs across the banking group. HSBC has previously said the business is under a strategic review. Both bidders want the business to be fully recapitalized with HSBC injecting at least 500 million euros before they can buy it for a symbolic amount of one euro, the sources said. “The price is going to be disastrous for HSBC,” of the sources said.

Source: The Standard September 29, 2020 10:41 UTC