French deal seen likely end to Societe Generale debacle: analysts

0 Comments | AFP, February, 2008

PARIS (AFP) — Takeover talk swirled around Societe Generale bank on Friday, driving up its shares, with analysts expecting an all-French solution to its seven billion dollar rogue trader debacle.

France's second-biggest bank, Credit Agricole, has reportedly asked two investment houses to advise it on a possible bid, a day after the number one, BNP Paribas, said it had its eye on Societe Generale.

"I really think it will be a domestic bid. I don't think any foreign players will want to step in and buy up SocGen when it's in this fragile position with a damaged reputation. And the French state has every intention of protecting the bank," said a Paris-based dealer who asked not to be named.

Credit Agricole has asked subsidiary Calyon and takeover specialists...