UK Internet bank Egg has confirmed reports that it is in negotiations with Bernard Arnault to buy French online financial business, Zebank.
Responding to a report published in the Financial Times today, the bank states: "Egg is in exclusive discussions with Groupe Arnault and Dexia which may or may not lead to the acquisition of a majority holding in Zebank and in parallel Zebank is pursuing discussions with certain French retailers to secure distribution arrangements."
The UK financial daily claims the terms being discussed would give Egg control of Zebank, following a partial cash payment for Groupe Arnault's 80 per cent stake in the online venture. Zebank was launched in February 2001 and claims to have as many as 80,000 accounts, exceeding initial first year targets of 60,000 customers.
Egg, which moved into profit for the first time in November last year, has been exploring opportunities for expansion on the continent for some time.