France's Credit Agricole-Indosuez wants to buy a controlling stake in a local bank in Egypt, to form the basis of a corporate and investment banking business in the country. The French bank says it is considering several possibilities, but has not yet made a formal commitment to bid for any particular bank.

'It is definitely my first priority to acquire a bank at a good price,' says Hugues de Parcevaux, Middle East regional head at Credit Agricole- Indosuez. 'We want to have a majority in the bank and we want the management. We would prefer to do it this year because we have all the internal approvals.' However, he adds that an acquisition is unlikely in the immediate future because the stock market is still falling, and any deal would need time for approval by the Egyptian government, the central bank and the management and shareholders of the chosen bank.

Other foreign banks are also believed to be interested in buying some of the dozen or so joint venture banks in Egypt, which were set up in the last twenty years by the government and foreign partners and are now being privatised. There are also rumours that some of Egypt's many small, privately-owned banks are to be put up for sale soon. The central bank has stopped giving out new banking licences, so any foreign institution which wants to set up branches in Egypt will have to buy an existing local bank. De Parcevaux says he is considering both joint-venture and private sector banks.

The French bank, which got its present name last year after Credit Agricole bought Banque Indosuez, has a branch network spanning the Arab world. Its holdings include 51 per cent of Banque Libano Francaise and 31 per cent of Al Bank Al Saudi Al Fransi in Saudi Arabia, which it runs under a management contract.

De Parcevaux says that after a successful acquisition, Credit-Agricole Indosuez would use the local bank to improve its ties with local business, then offer investment banking services. Credit Agricole-Indosuez had previously planned to strengthen its representative office in Cairo, but De Parcevaux said that this has taken a back seat to the acquisition plan. The bank is also talking to a number of Egyptian companies about arranging global depositary receipt issues, but nothing has been signed yet.