TUNIS, March 30: Ten foreign banks, including Credit Lyonnais and Societe Generale of France and Italian Monte dei Paschi di Sienna, showed interest in buying a majority stake in Tunisia UIB bank, a senior official said on Friday.

The Tunisian government had set March 23 as a deadline for would-be bidders to express interest in acquiring the 52 per cent stake the state owns in Union Internationale de Banques.

The Economic Development Ministry, which is in charge of privatizing state assets, has said it is seeking a foreign bank with an international operation or a consortium of investors led by a foreign bank to acquire the stake.

Ten banks wrote to us to say they are willing to buy the 52 per cent state equity in the bank. All of them are foreigners with international reach, a senior government official said.

When asked to comment market market talk that Credit Lyonnais, Societe Generale and Monte dei Paschi want to bid to buy UIB, the official said: Yes these three banks are among the 10 banks which expressed interest.

The official, who did not want to named, said the expression of interest was a first step toward awarding the UIB tender to the highest bidder by end of June this year.

We will select the best candidates among the 10 banks which showed interest and will pick the best offer from them, he said.

UIB turned in 18.2 million dinars ($12.28 million) in net profit for 2001, up 21 per cent from 2000.

Its total assets stood at 1.7 billion dinars in 2001 from 1.5 billion in 2000. UIB has 93 branches across the country. Its revenues from interests on granted loans rose to 87.88 million dinars in 2001 from 83.94 million the previous year.

The official said UIB capital is 70 million dinars. The state’s 52 per cent stake is divided between state-owned companies and concerns, including airline Tunisair which holds 25 per cent and state-run funds Caisse Nationale de Securite Sociale (CNSS) owns 13.75 per cent.

Government-run oil firm Etap, petroleum products retailer company SNDP and olive oil board Office de l’Huile, both state-owned concerns, have about 13 per cent between them.

Joint-venture BTEI bank, Banque de Tunisie et des Emirats d’Investissement, owns 12.35 per cent. The government had said earlier that that stake was not for sale but the official said on Friday the BTEI share in UIB will be ceded.

The official added that the state will buy only 12.35 per cent of Tunisair share in UIB.

The remaining 35.88 per cent is owned by retail investors and traded on the bourse where UIB share was last quoted at 16.33 dinars on Friday, up 0.18 per cent.—Reuters