French mutual insurer Groupama has selected Morgan Stanley to explore strategic options to improve its solvency ratio, two people familiar with the matter told Reuters. "It's a long-term mandate that was confirmed by the new management," one of them said.The investment bank will advise alongside boutique Ricol Lasteyrie, which is headed by Rene Ricol, a close friend of French president Nicolas Sarkozy and an adviser to the government on the financial crisis.Groupama has the option to sell off some of its assets and will need to raise as much as two billion euros, a person advising European financial services companies said, anticipating an eventual break-up of the French group.Morgan Stanley declined to comment. Groupama and Ricol Lasteyrie were not available for immediate comment.
Morgan Stanley is a global financial services firm that, through its subsidiaries and affiliates, provides its products and services to a group of clients and customers, including corporations, governments, financial institutions and individuals. Shares of MS fell by 8.26% or $-1.43/share to $15.89. In the past year, the shares have traded as low as $11.58 and as high as $31.04. On average, 34550100 shares of MS exchange hands on a given day and today's volume is recorded at 20281068.
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