BNP won control of Paribas last month in a hostile takeover that scuppered the investment bank's own planned merger with BNP's rival Societe Generale. In a statement, the two banks said the committee would be headed up jointly by BNP's number two Baudouin Prot and senior Paribas board member Dominique Hoenn.

There are also important jobs on the new committee for Paribas board members Jean Clamon, Philippe Blavier, Bernard Muller and Amaury-Daniel de Seze as well as for chairman of the board Michel-Francois Poncet.

The committee, which held its first meeting Wednesday, draws its members equally from BNP and Paribas. Aside from Prot, BNP's Georges Chodron de Courcel, Bernard Lemee, Vivien Levy-Garboua and Alain Moynot all feature on the committee.

Two other senior Paribas figures -- Michel Clair andPhilippe Wahl -- have also been given key responsibilities in shaping the newly merged group. Wahl previously played a key role at Paribas in trying to rebuff BNP's hostile takeover bid.

BNP only won control of 65 per cent of Paribas after an often bitter five-month takeover battle during which its proposals for a three-way megamerger in French banking were pitted against Societe Generale's plans for a friendly tie-up with Paribas.

Defeat for the Societe Generale-Paribas project led to the resignation last month of Paribas chairman Andre Levy-Lang. BNP took control of Paribas but failed in its attempt to take over Societe Generale.

"This started out as a hostile bid but we want to make the merger a friendly one," said a BNP spokesman. Last Saturday, management from BNP and Paribas held a first meeting to plot the way forward for the newly merged group.

BNP and Paribas also confirmed Wednesday that the newly merged BNP-Paribas will be organized around six separte divisions: retail banking in France;retail banking outside of France; investment banking; asset management, insurance and international private banking; industrial holdings and, finally, specialist financial services.

BNP officials say it will take at least four months to put the merger with Paribas in place. The newly merged group is expected to be fully operational only at the beginning of next year.

The Wall Street Journal