(Adds details, background)
LONDON, March 17 (Reuters) - HSBC has entered final
negotiations to sell its French retail banking business to
private equity firm Cerberus, a source familiar with the matter
said on Wednesday.
The planned disposal is part of HSBC Chief
Executive Noel Quinn's strategy to slash costs across the
banking group and Reuters previously reported that Cerberus was
among two remaining bidders.
The talks are conditional on price and terms and may not
necessarily result in a sale, the source told Reuters.
A spokeswoman for HSBC declined to comment, while Cerberus
could not immediately be reached for comment.
HSBC is working with Lazard to sell its 270 retail branches
in France, but has been struggling to attract interest as
bidders fret over restructuring costs and complex talks with
local regulators, Reuters reported last September.
Any sale could involve a token price, with HSBC having to
plough in some 500 million euros ($595 million) to finance the
necessary restructuring, Reuters previously reported.
($1 = 0.8398 euros)
(Reporting by Lawrence White and Arno Schuetze, additional
reporting by Pamela Barbaglia and Gwenaelle Barzic; Editing by
Louise Heavens and Alexander Smith)