BNP Paribas has confirmed that it is considering a bid for Société Générale, the rival French bank hit by a £3.7bn trading scandal. A BNP Paribas spokesman told Reuters: "We are studying it because all of Europe's banks are studying it." The French government has warned off foreign or hostile predators, meaning any tie-up must be all-French and agreed by both banks.
It is not the first time that speculation of a merger between the two French banks has mounted. In 1999 BNP successfully bid for Paribas but failed in its takeover attempt for Soc Gen. Since then rumours of a merger have persisted.
Meanwhile Jérôme Kerviel, the trader at the centre of the biggest trading loss in financial history, has reportedly told French police that he was thought he was breaking the rules but added that controls at Soc Gen were at best inadequate.
The bank, which admitted last week that unauthorised positions held by the 31-year-old trader had triggered losses of £3.7bn, yesterday revealed it had set up a special committee of independent directors.
The French government has warned off foreign or hostile predators, meaning any tie-up must be all-French and an agreed bid.
By Angela Monaghan
© Financial Times
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