DESJARDINS GROUP CONSIDERING SHARE OFFERING
<Desjardins Group>, the Quebec credit
union organization with 30 billion dlrs in assets, needs a new
structure to raise capital and compete outside of Quebec and is
considering a share issue, president Claude Beland said.
    Beland said the group is considering forming a holding
company which would raise capital by issuing preferred,
non-voting shares.
    "If we want to expand we have to look into other markets,"
Beland said in an interview. "Right now we have many
opportunities but we don't have the tools to react properly,"
he said.
    The co-operative organization, which was founded in 1900,
said it accounts for 38 pct of Quebec consumer loans, 50 pct of
mortgage loans, and 18 pct of commercial loans in the province.
It said it also controls Quebec's largest life insurance
company.
           
 Reuter
