Societe Generale take over? Now it is more real than ever. In my last blog, I told you that a take over for Societe Generale was inevitable. Now it is more than real. Take a look at what happened to its shares today…wonder why.
Well, today there is a report that fellow French bank Credit Agricole has hired advisers –Lazard and its own investment bank, Calyon, to study SocGen.to study a possible approach according to Les Echos newspaper.
On the other side, on Thursday Frenchs biggest listed bank BNP Paribas confirmed that it would look into making an offer for Societe Generale.
BNP had tried but failed to acquire Societe Generale in 1999. After the news of the trading losses broke there has been speculation of a joint break-up bid in which Credit Agricole would take Societe Genenerale’s investment banking arm and BNP the retail side of its business.
Societe Generele has hired Merill Lynch for advice, but the bank declined to comment. A source familiar with the Societe Generale said that the bank had taken on Rothschild for its bid defense.
BNP has hired Goldman Sachs and Lehman Brothers for its potential approach.
Societe generale has said that it is strong enough to stay independent—really. Analysts have predicted that aside from the Banks domestic rivals, Barclays’ Bank, Santander, BBVA and HSBC are among other potential bidders.
The French Government leaders have made it clear that they do not what any foreign bidders going after Societe Generele, putting the country on clash with the European commission which oversees competition in the EU.
“In previous banking cases, we made it quite clear that the government should not interfere by putting their national companies first,” Charlie McCreevy, the European Union’s internal markets commissioner, said Thursday through a spokesman. “The rules on free movement of capital and the legislation in place means that potential bidders must be treated in a nondiscriminatory way in the situation of cross-border takeovers.
As this saga unveils all we have to do is waiting to see how this issued will turn out to be…Now the spot light had turned to the government.
I think it is fascinating. I am trying to figure out why the Rothschilds have interest in defending the state’s interest and the bank’s interests. I would greatly appreciate any input you have on my blog.
http://talkams.blogspot.com/
By: aaron on February 1, 2008
at 9:19 pm