Ah Paris, the intellectual and cultural center of the globe! For centuries it has been a meeting point for artists and thinkers. But beyond the romanticism and cultural riches lies a growing financial center. It may not rank with a London or a New York, but Paris is nevertheless a strong and growing player in the Eurozone. And for IR professionals, it is an important target. According to Thomson Financial/Carson’s Target Cities Report, it is the seventh largest investment center.
In recent years, French investors have been diversifying their portfolios into equities, domestic and foreign alike, so that what was once an inward-looking, debt-based economy is now becoming part of the global financial market. And, as its investment profile changes to meet the demands of the international capital markets, the distinction between French and Anglo-Saxon business practices has become increasingly blurred.
The country’s emergence as a global player has seen French companies take a more active stance on corporate governance issues, not least in a bid to satisfy demands from large institutions. ‘Overall, corporate governance has developed much later in Europe than in the US,’ says an IRO at a French company. ‘However, corporate governance issues are now integrated into the thinking of French companies, which was definitely not the case a few years ago.’
Regular visits
As part of the Eurozone, Paris has been receiving more visits from North American companies in search of foreign equity, and it’s a two-way street. ‘All the big companies now belong to the Euro Stoxx index and are traveling all over Europe, Asia and North America to visit investors,’ says a Paris-based IRO. Indeed multi-country stock indices like Euro Stoxx 50 and Eurotop 100 are unifying European nations and this melding of the markets has in turn affected the investment style of large French institutions, which are now more likely to look abroad.
‘There is definitely a pan-European approach to investing here,’ explains Nicole Curtin, head of investor relations at Morgen-Walke in Paris. ‘When Americans come over to Europe they usually visit more than one European city,’ she says. ‘They invariably have to do London, Frankfurt, and Paris.’ While visits to these three European cities is common for companies looking to tap into European capital, Curtin says planning a visit to Paris depends ‘on a company’s sector, what resources it can devote to the visit and how much it wishes to open its shareholder base.’
Paris seems also to be emerging as a hotbed for pre-IPO dot-com financing. According to Curtin, French institutions are very interested in the American high-tech sector. ‘We certainly set up meetings for many US dot-coms coming to Europe to look at European liquidity,’ she says. ‘These meetings should be well targeted; a one-on-one meeting is usually best.’
Making plans
Arranging roadshows, analyst conferences or one-on-one meetings with investors and analysts in Paris requires careful planning and research. The city is divided into 20 arrondissements or districts. The first district is in the center of the city; the rest of the districts encircling it in a clockwise layout.
La Defense, the city’s purpose-built financial district, used to be the first choice for meetings and conferences but today’s most popular setting is the center of town. Most investment management firms have offices there and it is very accessible by subway or cab, depending on the time of day. ‘Big hotels are good venues; a lot of meetings are organized at Le Bristol or the Ritz (see Tourist information, above) because they are in the center of the city and are easy for people to get to,’ says a Paris-based IRO.
Cultural nuances
According to Curtin, one-on-ones are best when approaching institutions and analysts. So, setting up intimate meetings makes more sense than booking a conference room for a day. If it is a company’s first visit to Paris, Curtin suggests using a broker to arrange meetings. In terms of timing, the best time of year to visit Paris is in early fall, notes a Parisian IRO; and whatever you do, don’t plan your meetings for August when most of France is on vacation. She also suggests planning meetings early in the day. ‘Either breakfast or lunch because dinner meetings are inconvenient. The best time to have a breakfast meeting is between 8:30 am and 10 am.’
Aside from the a preference for early meetings, there is one other French cultural nuance that IR professionals should be aware of. ‘Timing,’ says a representative from Edelman Public Relations in Paris. ‘The French have a different concept of timing than Americans do,’ he continues. ‘In France it’s perfectly acceptable to be 15 or even 20 minutes late.’
Press coverage
There are several daily and weekly papers and trade publications worth contacting when visiting Paris. Most of the dailies are fond of broad economic issues and keep a close eye on stock prices. ‘If there is any kind of surprise with a stock price the press does not hesitate to focus in on what has happened,’ one IRO says. The list of well-known financial papers, which also cover foreign companies, includes Les Echos, La Tribune, Le Journal des Finances (weekly), Investir Magazine (weekly) and Le Monde.
Web pointers
paris.org: museums, tourist information, hotels, weather, currency paris-touristoffice.com: events around town, business tourism information, conference and trade show database wcities.com/paris:guide to the city including historical background, as well as entertainment and restaurant reviews
Large Institutions
AGF Asset Management
AXA Investment Managers
Paris Banque
Populaire Asset Management
BNP Gestions
CDC Asset Management Europe
Credit Lyonnais Asset Management
INDOCAM
Paribas Asset Management
Societe Generale Asset Management
Victoire Asset Management
Hotels
o George V 31 avenue George V 75008 Paris Tel: +33 1 47 23 54 00
o Meridien Etoile
81 Boulevard Gouvion Saint Cyr, 75017 Paris +33 1 40 68 34 34
o Prince de Galles
Sheraton
33 avenue George V 75008 Paris +33 1 47 23 55 1
o Intercontinental Paris
3 Rue de Castiglione 75001 Paris +33 1 44 77 11 11
o Crillon (De)
10 place de la Concorde 75008 Paris +33 1 44 71 15 00
o Ritz
15 Place Vendôme 75001 Paris +33 1 43 16 30 30
o Le Bristol
112 rue du Faubourg St Honoré 75008 Paris +33 1 42 66 91 45 Conference facilities
o Le Palais des
Congrès de Paris 2 place de la Porte Maillot 75017 Paris +33 1 40 68 22 22
o Salle Pleyel
252 rue du Faubourg St-Honoré 75008 Paris +33 1 45 61 53 00
Where to eat
o Maxim’s
3 rue Royale 75008 Paris +33 1 42 65 27 94
o Jules Verne
2nd floor of the Eiffel Tower 75007 Paris +33 1 45 55 61 44
o Le Grand Colbert
4 rue Vivienne 75002 Paris +33 1 42 86 87 88
o Angelina
226 rue de Rivoli 75001 Paris +33 1 42 60 82 00
o Lucas Carlton
9 place de la Madeleine 75008 Paris +33 1 42 65 22 90
