IPO will raise funds for acquisitions, says CEO

Groupama will complete an initial public offering (IPO) in 2011 or 2012, raising funds for large-scale acquisitions, Wall Street Journal reports.

"In the two years to come I think it will be effective," chief executive Jean Azema told Dow Jones yesterday.

He added the IPO wouldn't happen this year.

The French insurer could make an acquisition before listing on the stock market, Azema said.

However, a "transformative" acquisition, which would mean buying a company with annual sales of around €4bn to €5bn, wouldn't be possible without the IPO, he said.