Acquisitions

After a multi-billion-euro rogue trade losses rumours have appeared that the french bank giant Sociéte Géneral will have to face hostile takeover bids. Bank´s chairman Daniel Bouton also faces pressure to stand down. French Finance Minister Christine Lagarde said that she is „convinced“ the bank needed a change of chairman. But her claim is in disagreement with President Sarkozy´s statement. Also Jean Arthuis, the head of the French Senate finance committee claimed:“I don´t think Bouton has any choice but to leave.“ As rumours have started that bank could potentionaly be a takeover target, banl´s shares immidiately Prime minister Francois Fillon warned the government „will not allow Sociéte Géneral to be the target of hostile raids.“ „Sociéte Géneral is a great French bank...and the government intends it to remain a great French bank and globalised player,“ Fillon said. Two top french banks are said to be making their offer â€" BNP Paribas and Credit Agricole. There are also brittish applicants â€" HSBC and Barclays which have also been named as potential bidders. The main suspect of the caused losses, Jerome Kerviel is still under formal investigation. He was accused of using false documents and unauthorised computer access, but judges did not approve any other serious charge of fraud. Kerviel told his prosecutors his bosses must have been aware of placing such a great amount in risky futures trades, but Sociéte Géneral defends itself that Kerviel had been challenged several times about risky operations, and each time he produced fictious documents to justify himself.

related story: http://news.yahoo.com/s/afp/20080129/bs_afp/francebankingsocietegeneralecrime_13;_ylt=AuWbF6DnCdp1CcusPjRqn7qs0NUE

by Tatiana Hadarova for PocketNews (http://pocketnews.tv)

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