Dexia sells Luxembourg subsidiary to Precision Capital for US$950 mil.

Dexia said Tuesday that Precision, which is linked to the Qatari royal family, will hold a 90 percent stake in Dexia Banque Internationale a Luxembourg.

The state of Luxembourg is buying the remaining 10 percent.

Dexia was split up and partially nationalized this fall after other banks, worried by its huge reliance on short-term funding and large exposure to struggling countries like Italy and Greece, stopped lending to it.

The Belgian state took over Dexia's Belgian retail arm, while other subsidiaries are in the process of being sold.

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