Oddo launches 760 million euro offer for BHF Kleinwort Benson

By Jonathan Gould and Andreas Kröner

FRANKFURT (Reuters) - French private bank Oddo & Cie [ODDOP.UL] challenged Chinese investor Fosun on Friday by launching a counter-bid to buy BHF Kleinwort Benson (BHFKB.BR) that valued the Anglo-German lender at 760 million euros ($805 million).

Oddo said it would offer 5.75 euros per share to buy the near 78 percent of BHF that it did not already own, topping Fosun's 5.10 euro per share bid proposed in July.

The deal is seen as a test case for the attitude of European regulators, particularly the European Central Bank, towards a bigger role for Chinese financial investors.

Fosun and Oddo have been awaiting a green light from regulators, expected by mid-December, to launch formal bids.

The Chinese investor sees acquiring BHF as an important step in establishing a financial platform in Germany and beyond. It already owns a near 20 percent stake in BHF and aims to buy a further 9 percent, which would give it a sizeable say in the bank's operations even if Oddo's bid succeeds.

"Fosun takes note of Oddo's announcement and is analysing the situation," a Fosun spokesman said, declining further comment.

Oddo said it now holds nearly 22 percent in BHF and has secured commitments from two other shareholders, U.S. investor Franklin Templeton Group and Aqton, a vehicle controlled by big BMW (BMWG.DE) shareholder Stefan Quandt, which made it confident of being able to acquire more than 50 percent of BHF's capital.

Oddo, which took over German specialist adviser Seydler Bank last year, is bidding for BHF to clarify its future course and to ensure key staff are retained, rather than to consolidate costs, bank head Philippe Oddo told journalists on a telephone conference.

"It's a growth story, not a synergy story," Oddo said.

BHF Kleinwort Benson was forged just last year when Brussels-listed RHJ International, owner of the venerable 200-year-old British merchant bank Kleinwort Benson, bought the Frankfurt-based BHF-Bank from Deutsche Bank (DBKGn.DE).

Now BHF Kleinwort Benson looks set for a renewed breakup.

Oddo said if its bid succeeded it would sell BHF's private banking activities in Britain and the Channel Islands to Societe Generale (SOGN.PA) at a price and terms that had already been fixed.

Societe Generale and JP Morgan are providing loans for the takeover, and Oddo said it would also seek permission for a capital increase at an extraordinary shareholders' meeting scheduled for Dec. 3.

The capital increase was expected to raise between 50 and 100 million euros, a source familiar with the situation said.

At its offer price, Oddo would need about 596 million euros to buy the shares in BHF it does not yet own.

($1 = 0.9445 euros)

(Additional reporting by Kathrin Jones and Matthieu Prottard; Editing by Maria Sheahan and Adrian Croft)