BNP Paribas quashes SocGen takeover rumours
In response to market speculation, BNP Paribas has announced that it is no longer considering a potential tie-up with fellow French bank Société Générale. The bank said in a statement that conditions that would have allowed it to realise a value-creating merger for shareholders were not met.
“In the current environment, BNP Paribas' priority is to recognise and play to its strengths: stringent risk management, solid financial structure, commercial efficiency, diversification of revenue sources,” the statement read. The Group is well positioned to continue its development by combining its expertise in retail banking, corporate and investment banking, and asset management and services.”
Rumours about BNP Paribas buying SocGen have circulated since SocGen revealed in January that rogue trading activity had cost it €4.9 billion. SocGen has blamed the loss on Jérôme Kerviel, a trader responsible for vanilla futures hedging at the bank.