But Strauss-Kahn said during a news briefing he sees Credit Lyonnais's market value at 7.62 billion euros, taking into account the traditional discount for share offerings in privatized companies.

Investors who have bid for a 1 per cent to 4 per cent stake in Credit Lyonnais will pay a premium of 1.9 per cent over the issue price for the shares and strategic investors bidding for a stake of 4 per cent to 10 per cent will pay a 3.5 per cent premium.

Retail investors will be offered a premium of 0.70 euro a share.

Strauss-Kahn also said retail investors who hold stock in the bank for more than 18 months will be offeredone free Credit Lyonnais share for every 10 shares that they hold.

The reservation period for the shares will be June 15 and June 28, and the subscription period will run from June 29 and July 2. The shares will start trading July 8.

The government has shortlisted a group of seven financial institutions to take minority stakes in Credit Lyonnais. It has offered Credit Agricole a 10 per cent stake; Assurances Generales de France SA, a unit of German insurer Allianz AG, a 6 per cent stake; and Axa SA 5.5 per cent.

It also offered stakes to: Germany's Commerzbank AG, 4 per cent; Spanish bank Banco Bilbao Viscaya SA, 3.75 per cent; Credit Commercial de France SA, 1 per cent; and Italy's Banca Intesa, 2.75 per cent. The state will hold 10 per cent of Credit Lyonnais following the privatization.

The Wall Street Journal