BNP shares fall sharply on report of possible capital increase

PARIS (AFP) — Shares in BNP Paribas fell sharply on Monday on a report from British bank HSBC suggesting that it might need a capital increase to offset losses arising from a global credit crisis.

Shares in BNP, a leading French retail and investment bank, were showing a fall of 2.12 percent at 56.68 euros in early trading on a generally weaker Paris market.

HSBC, which lowered its recommendation on BNP shares to "neutral" from "overweight," said BNP could be forced to raise new capital in the face of a deteriorating economic environment and possible asset writedowns.

But BNP chief Baudouin Prot told the Financial Timees newspaper that ...