France's Credit Agricole Buys 7% Stake in Payments Firm Worldline

French bank Credit Agricole, said this week it had bought 7% of Worldline, in a bid to bolster the payments group after a slump in its share price last year.

Worldline's shares jumped more than 5% after the announcement, which follows reports in December that Credit Agricole was exploring building a stake in the company.

The Paris-based payments firm has lined up bankers to advise on a defence strategy to reassure shareholders and avoid a hostile takeover.

The advisers were sounding out potential investors such as French financial institutions about taking a minority stake in the group, sources said.

The value of Worldline's shares more than halved in October when it cut its financial targets amid scrutiny by German regulators over money-laundering controls.

Worldline said its business had been hit by an economic slowdown in Europe.

Credit Agricole said in a statement that its purchase of 7% of Worldline was to strengthen a partnership that the two firms agreed last year, showing its "intention to support Worldline's development and implementation of its strategy as a key European payment services provider".

The pair had agreed a joint venture to tap the 700 billion euros ($767.6 billion) of merchant sales in France as customers increasingly move from cash to card payments. Credit Agricole said operations would start this year.

(Source: Reuters)