BNP Paribas’ Capital Treatment in Axa IM Deal Opposed by ECB (3)

The European Central Bank has taken a negative view on applying a rule to BNP Paribas SA’s planned acquisition of Axa SA’s asset manager that would have made the deal financially more attractive, people familiar with the matter said.

In opposing the use of the regulation, known as the Danish Compromise, the ECB’s banking supervision arm wants to ensure equal treatment across the industry, the people said, asking not to be identified discussing internal deliberations. The watchdog recently issued a negative opinion on a similar but unrelated deal in Italy.

Shares of the French lender reversed earlier gains ...