Candidates for a stake in Credit Lyonnais have until April 28th to put in a bid for up to 10 per cent apiece of the state-owned bank, along with their plans for the group and its employees.

The French privatisation commission published details in the Official Journal yesterday, officially initiating the process, which is due to lead to privatisation around the end of June.

The specifics include the creation of a core group of shareholding companies which between them will hold a maximum of just below 33 per cent of the bank, constituting a blocking minority.

But each core shareholder will be allowed a maximum 10 per cent stake and will have to promise to maintain that position for at least two years, unless they are obliged to increase their holding to fight off a hostile takeover effort.

The economy ministry said in a statement yesterday that the privatisation should "consolidate the company's recovery" and give the bank "the means to develop".

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The government was forced to promise to privatise Credit Lyonnais by October, in return for authorisation from the European Commission for a final state bail-out for the bank, which came close to bankruptcy in the early 1990s.

The economy ministry said would-be partners "should have, or propose to have, co-operation agreements with Credit Lyonnais showing synergies or complementarities with Credit Lyonnais in terms of activities, means, clients or the geography of its networks". They will also have to contribute to an Ffr8 billion capital increase to consolidate Credit Lyonnais' financial strength.