LONDON (ShareCast) - Banking colossus BNP Paribas has reached an agreement to sell a 28.7 per cent stake (54.4m shares) in French property company Klépierre to US shopping centres owner Simon Property Group for 28 euros per share.

The French bank commented that the deal is part of its plan to increase its Tier 1 ratio to 9% by 2013.

“The disposal of 28.7% of Klépierre's share capital will generate a capital gain of approximately €1.5bn for the group and will contribute 32bp [32 basis points, or 32/100 of a percentage point] to this target,” the financial institution noted in a statement.

BNP was the third biggest advancer on the CAC40 in the morning session, trading up 4.21%, to €37.1650. Simon Property Group closed on Wednesday on Wall Street with gains of 0.95% at $69.95.

JM

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