French, Swiss Firms Say They May Join in Goldsmith’s Bid for BAT

French financial group Compagnie Financiere de Paribas said Monday that it might join Sir James Goldsmith in his proposed $21.2-billion buyout of BAT Industries PLC.

“We are considering taking part in the bid. Very advanced discussions are under way with (Goldsmith’s) Hoylake Investment Ltd.,” a Paribas spokesman said.

Swiss investment group Pargesa Holding SA also said it might back the consortium seeking control of BAT, which has substantial holdings in tobacco, retailing and insurance on both sides of the Atlantic.

The biggest takeover battle in European corporate history has been topped only by the $25-billion RJR Nabisco Inc. buyout in the United States.

The addition of Paribas would broaden financial support for the bid, which has hit some skepticism in London’s relatively staid stock market, where billion-dollar deals were unusual until recently.

Anglo-French financier Goldsmith, together with British banker Jacob Rothschild and Australian businessman Kerry Packer, launched his bid last Tuesday, sending the London market soaring.

But there has been concern over the group’s plan to fund the cashless bid with junk bonds. Financial analysts have said British regulatory authorities might feel it necessary to launch an investigation into the offer because no cash is involved.