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Harmful investments by Intesa Sanpaolo June 2009

Loans In September 2005, Sanpaola IS, now part of Intesa Sanpaolo, participated for the sum of € 800 million in a € 3.4 billion bridge loan to CNPC, the controlling shareholder of PetroChina. In February 2007, Intesa Sanpaolo participated for the amount of € 23 million in a € 767 million loan to CNPC. The loans funded CNPC’s acquisition of and investments in PetroKazakhstan. The Chinese oil company Petrochina operates the majority of Sudan’s oil industry and is also active in Burma. Sudan and Burma are highly reliant on foreign direct investment to fund its military and finance internal repression. In August 2008, Intesa Sanpaolo participated for the amount of € 16 million in a € 642 million loan to Vedanta Resources. The loan is used to refinance the acquisition of Sesa Goa, India’s biggest private sector ore producer. The Indian mining company Vedanta has illegally driven indigenous people from their land in India. The company has dumped toxic waste in India and Zambia.

Issues of shares /

Issues of bonds In January 2009 and in March 2009, Wal-Mart issued bonds worth € 770 million and € 1.06 billion. Banca IMI, part of Intesa Sanpaolo, underwrote these issues for € 7.7 million and € 10.1 million respectively. The US supermarket chain WalMart censors trade union information, sacks members of trade unions, and even closes entire stores to block the unionisation of the workforce.

Shareholdings Intesa Sanpaolo owns or manages shares in eleven of the researched companies, for a total value of US$ 414,54 million.


  Colbun

US$

0,3 million

Dongfeng

US$

1,11 million

EADS

US$

11,59 million

Freeport McMoRan

US$

18,92 million

Lundin Petroleum

US$

7,33 million

Petrochina

US$

40,85 million

Suncor Energy

US$

6,99 million

Textron

US$

1,29 million

Total S.A.

US$

266,03 million

Vedanta Resources

US$

2,59 million

Wal-Mart Stores

US$

57,54 million

Sources: European banks financing controversial companies, Profundo (research paper for Netwerk Vlaanderen), June 2009 ; Shareholdings of some European Banks in controversial companies, Profundo (research paper for Netwerk Vlaanderen), June 2009.


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