Credit Agricole selling €5 billion assets (Bloomberg) (15-05-2008)

May 15 (Bloomberg) -- Changes ahead for Credit Agricole SA, which says it is planning to sell 5 billion euros ($7.8 billion) of assets and has replaced the head of its investment bank following the U.S. subprime mortgage market related losses.

The bank’s CEO said today that the company will divest assets over the next 18 months, without identifying the assets.

Credit Agricole is in the market for 5.9 billion euros in a rights offer to replenish capital after subprime writedowns cut first-quarter profit by 66 percent.

``Refocusing is not retreating,'' Pauget said. Calyon ``will concentrate efforts on domains and activities where we have recognized international positions,'' he said.

Credit Agricole fell 32 cents, or 1.6 percent, to 19.18 euros by 9:16 a.m. in Paris trading. The stock is down 17 percent this year, compared with a 15 percent decline in the 59-company Bloomberg Europe Banks and Financial Services Index.

Credit Agricole has announced about 5.5 billion euros of asset markdowns since the start of last year, the most among French banks. The world's largest financial companies are seeking about $249 billion from investors after the U.S. subprime mortgage collapse roiled credit markets globally, leading to $337 billion of markdowns.

  Source Bloomberg