Wednesday, March 19, 2008
BNP Paribas - No Societe Generale Takeover Bid
Nicolas Parasie, Wall Street Journal reports that BNP Paribas SA Wednesday said it is no longer considering a takeover bid for Societe Generale, ending recent speculation that France's largest bank would make a play for its scandal-hit rival. "Given the persistent rumors, BNP Paribas clarifies that it has ceased to consider a potential tie-up with Societe Generale," the Paris-based bank said in a statement.
This comes just after news broke that SocGen is undertaking a 'comprehensive' restructuring of its senior management. From the IHT - Société Générale, the French bank hobbled by a €4.9 billion trading loss, announced Monday that it was reorganizing its senior management team, promoting its chief financial officer, Frédéric Oudea, to the post of deputy chief executive - a move that some observers said could pave the way for the bank's chairman and chief executive, Daniel Bouton, to step down.
There were only three options here - First, what actually has happened, i.e. - A shakeup of top management. Second, a takeover by BNP Paribas. And third, the French government steps in and nationalizes the bank. Since BNP doesn't want to get involved, that leaves open the possibility of nationalization. I say this beacuse this scandal is not over. Not by a long shot. If anything, its just heating up.
Since Jerome Kerviel, the rogue trader at the center of the whole controversy, has been freed on bail, it's fair to assume that investigations into who else is involved in the scandal, and the cover-up, have reached an advanced stage. A second trader was arrested last week, and its quite likely that more heads will roll, as news leaks out. One thing you can say with certainity - The corporate shakeup of SocGen isn't over - Yet.
This comes just after news broke that SocGen is undertaking a 'comprehensive' restructuring of its senior management. From the IHT - Société Générale, the French bank hobbled by a €4.9 billion trading loss, announced Monday that it was reorganizing its senior management team, promoting its chief financial officer, Frédéric Oudea, to the post of deputy chief executive - a move that some observers said could pave the way for the bank's chairman and chief executive, Daniel Bouton, to step down.
There were only three options here - First, what actually has happened, i.e. - A shakeup of top management. Second, a takeover by BNP Paribas. And third, the French government steps in and nationalizes the bank. Since BNP doesn't want to get involved, that leaves open the possibility of nationalization. I say this beacuse this scandal is not over. Not by a long shot. If anything, its just heating up.
Since Jerome Kerviel, the rogue trader at the center of the whole controversy, has been freed on bail, it's fair to assume that investigations into who else is involved in the scandal, and the cover-up, have reached an advanced stage. A second trader was arrested last week, and its quite likely that more heads will roll, as news leaks out. One thing you can say with certainity - The corporate shakeup of SocGen isn't over - Yet.
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