Statement re Banco Frances
Banco Bilbao Vizcaya Argentaria SA
12 July 2001
Document Dated 11 July 2001
BBVA POSTPONES THE INCREASE OF ITS
EQUITY INTEREST IN BANCO FRANCES
* The current negative market environment requires making use of the conditions
included in the offer.
* The offer was conditioned on the M.AR index not declining by more than 35%
since its level in January.
* BBVA reaffirms the strategic and long-term nature of its investment in
Argentina.
BBVA announced today that it will postpone the increase of its shareholding in
Banco Frances due to a decline in the M.AR stock index of more than 35% since
the announcement of the transaction in January.
The prospectus for the offer, approved by the relevant securities markets
authorities, provided that the transaction was subject to, among other
conditions, the absence of a decline in the value of the stock market M.AR index
to less than 35% or a higher percentage of the level of the M.AR index when the
intention to launch the offer was announced in January.
The progressive decline in financial markets has required making use of the
conditions included in the offer.
At the close of yesterday's trading session, the index had experienced an
accumulated decline of 35.63% and 37.09% at the close of today's trading
session, thereby triggering the condition set forth in the prospectus for the
offer.
BBVA has kept the Argentine authorities informed at all times during the
planning and preparation of the transaction.
In any instance, BBVA considers its investment in Banco Frances of a strategic
and permanent nature, and confirms its intention to increase its shareholding
stake in Banco Frances when market conditions are more favorable.
In addition, BBVA reaffirms its complete confidence in Argentina, where it has
been present since 1996.
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