Two bidders offer one euro for HSBC France

HSBC may be left with no option but to sell its French operations at a hefty loss.

According to sources cited by Reuters, US private equity outfit Cerberus and another investor have both offered to pay one euro for the lender's French unit.

But only if HSBC first recapitalises the unit by injecting at least €500m into it.

European lenders' shares have been hard hit by the Covid-19 pandemic with HSBC having also been caught between the US and China due to the tensions triggered by the latter's authoritarian approach towards Hong Kong and resulting tensions with the West.

Cerberus and the other firm were reportedly the only potential bidders left.

HSBC is attempting to shed underperforming businesses in order to boost its return on capital.

HSBC France's private banking and wealth management arm posted an interim €225m loss before tax.