The shopping spree left the state-owned company with E70 billion ($75 billion) in debts and caused a E20.7 billion loss in 2002 -- the biggest in French history.
“I’m not very comfortable with most investment banks, because you never know if what they advise is good for you or mainly good for them,” confides Bon, 60, who previously ran Crédit Agricole and Carrefour. “If they suggest you structure a deal with an equity issue or with corporate loans, is it because of the fees they can earn, or is it because it’s really what you need?”
Then what explains Bon’s decision last month to cast his lot with this treacherous breed and accept a part-time position as a senior adviser with Paris-based M&A boutique Dôme Close Brothers?
“Dôme Close is totally different from the breed of investment bank I’m used to,” insists Bon, who freely acknowledges his share of responsibility for FT’s travails. He points out that the five partners and 20 managing directors “have nothing to sell but their advice, which is why I accepted their offer.”
Dôme Close founding partner Olivier Dousset says of his new hire: “As someone coming from the management side, he can give us advice on how we pitch our deals. We need someone like Michel to criticize us.” Criticizing investment bankers shouldn’t be too tough for Bon.
