PARIS -(Dow Jones)- BNP Paribas SA (Euronext:13110) (13110.FR) said it will exercise an option to take an additional 1% stake in its Italian consumer credit joint-venture Findomestic, giving it 51% overall.

The French lender said negotiations aimed at renewing the terms of its deal with its Findomestic partner Banca CR Firenze SpA (Milan:CFI) (CFI.MI) failed. According to the joint-venture terms the Italian bank now has the right to sell its entire Findomestic stake to BNP Paribas (Euronext:13110) .

The two banks were unable to agree governance changes to the venture which BNP Paribas (Euronext:13110) said were needed to ensure the business was poised to seize opportunities in the Italian consumer finance market.

Findomestic was created in 1984 and BNP Paribas' (Euronext:13110) stake is held by its Cetelem (Euronext:13110) consumer credit unit.

Company Web site: http://www.bnpparibas.com

-By Digby Larner, Dow Jones Newswires; +33 1 4017 1748; digby.larner@ dowjones.com

    (END) Dow Jones Newswires   03-16-07 0738   Copyright (c) 2007 Dow Jones & Company, Inc.