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Both Compagnie Generale des Etablissement Michelin of France and Bridgestone Corp. of Japan keep closely guarded recipes that they are constantly improving for Formula One racing tires. Which tire company makes the fastest tires is a matter of great contention and prestige and translates into sales of regular tires.

The Paris stock exchange is a success, outperforming the United States and most European markets this year. According to the CAC Index, the securities market is up 19 percent and foreign investment market capitalization is 44 percent up from 33 percent in 1997.

France has moved to protect strategic companies from foreign acquisition with a list of ten sectors. While thwarting foreign investment, it's domestic sector is strengthening through foreign acquisitions. Compagnie de Saint-Gobain S.A. of France bid 3.68 billion Pounds ($6.57 billion) in a hostile takeover attempt of plasterboard manufacturer BPB PLC of the United Kingdom.

Despite the fact that the French government is only officially allowed to prevent takeover bids from taking place in industries that are linked to national defense and security, government officials and politicians are speaking out against a bid expected from U.S.-based PepsiCo Inc. for purchase of the French food and beverage giant Danone S.A. The position of European antitrust commissioner Neelie Kroes on the issue of government intervention to prevent acquisitions by foreign bidders in European countries, is discussed.

Finance Minister Thierry Breton of France is under investigation as former director of Rhodia S.A., the specialty chemicals company in what has come to be called 'Rhodiagate'. The company is in litigation with Hughes de Lasteyrie concerning a $37.7 million investment loss and was also in litigation with Edouard Stern for an investment loss of 60 million Euro. Mr. Stern was murdered by his mistress in February 2005.

BNP Paribas S.A. of France is to acquire the mortgage lender, Commercial Federal Corp. of the United States for $1.36 billion. The financial trend in European banks is to consolidate through acquisitions to increase revenue.

The French populace has voted 55 percent against the proposed European Union's new constitution in a national referendum. The vote has paralysed five decades of movement toward a pan European government. France's decline to join the European Union may hinder entery talks for Turkey.

AXA S.A., the global insurance giant is planning to securitize some of its automobile policies in the French market, this management move could set a precedent for European Union's insurance industry. AXA S.A. is in discussion with French authorities. European Union securitizations for 2004 totaled approximately $250 billion Euro and in the United States approximately $625 billion according to J.P. Morgan research.

Carlos Ghosn is to be the Chief Executive Officer of both Regie Nationale des Usines Renault of France and Nissan Motor Company Ltd. of Japan. Regie Nationale des Usines Renault shares have increased 50 percent since the beginning of 2003 and the announcement that Carlos Ghosn is returning as Chief Executive Officer. The French labor union, Conderation Generale du Travail is bracing, concerned that there may be layoffs and the automobile company is expecting a shakeup.

French financier Edouard Stern of Lazard Brothers and Company Ltd., was murdered by his mistress Cecile Brossard in February of 2005. The tumultuous relationship came to a head when $1 million delivered to Ms. Brossard's bank account for a set of Chagall paintings was frozen by Mr. Stern.

Euro Disneyland S.C.A. the French theme parks operator has been aided with a financial bailout by the French government and Walt Disney Co.

France's Autorite des Marches Financiers has launched an investigation of Vivendi Universal S.A. Alleged improper trading in the form of a convertible-bond issue by four British hedge funds is a wake up on premarketing deals.

France's Financial Services Authority is investigating the trading activities of four British hedge funds particularly a Vivendi Universal S.A. bond offering.

Saudi Arabian prince Alwaleed bin Talal, already a major shareholder in French theme-park operator Euro Disneyland S.C.A., has announced that he will buy as much as $32.7 million worth of new shares in the company. The infusion of capital that his purchase will represent for Euro Disney is expected to keep the financially ailing company from having to seek financial rescue.

Regie Nationale des Usines Renault is to shuffle it's top executive in advance of Carlos Ghosn's return as chief executive officer.

Michel David-Weill and Bruce Wasserstein are said to be approaching a compromise on Wasserstein's plan to float the historically private investment firm on the New York Stock Exchange. David-Weill, the chairman of the firm, approved the initial public offering in October, but only under the condition that Wasserstein, Lazard's operational head, should resign if the offer had not been made by the end of June 2005. It is expected that David-Weill is now readying to alter those conditions, pushing back the deadline to the end of March 2006.

200-year-old Rothschild Bank is still run by a wealthy European family. The global investment bank is ranked fourth among merger and acquisition advisors in Europe, and is in the top ten worldwide, ahead of such giants as J.P. Morgan Chase and Co. and Citigroup Inc. While some observers suspect that the bank will not be able to hold its own against competitors without going public, Baron David de Rothschild, the company's French chairman and major shareholder, believes it can.

Michel David-Weill, Chairman of the Board at Lazard Brothers and Company Inc. and a descendant of one of the company's founding families, has stated publicly that he would not oppose a plan for the investment bank to launch an initial public offering. However, in a letter to Bruce Wasserstein, the Lazard executive behind the plan, David-Weill has added that his approval comes with the stipulation that Wasserstein resign from the company if the initial public offering fails or doesn't take place by June 30, 2005. The communication is the most recent chapter in an ongoing dispute between the two company officials.

Bruce Wasserstein, head of investment bank Lazard Freres and Company L.L.C., faces opposition from a group of the bank's partners to his plans to make a public stock offering. Designed as part of a plan to end infighting among Lazard executives, the initial public offering was meant to provide funding so that the company could buy out its retired partners who, under current arrangements, continue to recieve dividends from the firm even though they are no longer working .

Euro Disneyland S.C.A. seeks approval from creditors for crucial debt restructuring. Though the theme park operator manages Europe's number one tourist attraction, it is struggling to turn a profit. It is feared that without approval from its creditors, the company may forced to fil e for bankruptcy.

Vivendi Universal S.A. and Lagardere Groupe S.A. hold discussions of a possible merger. Observers feel that despite the discussions, a merger is highly unlikely, one reason being that Arnaud Lagardere, chairman of the Lagardere Groupe and son of the company's founder, would be obliged to give up his control in the workings of the company following a merger.