Bloomberg reported that shares of BNP Paribas rose E1.7 to E87.60, while Societe Generale shares increased 1% to E140.88. As a result, BNP’s market value stands at E81.8 billion, 20% larger than Societe Generale’s.
Bloomberg also reported that, if the deal went ahead, it would create Europe’s second largest bank, after HSBC, with a market capitalization of E145 billion.
Media reports have also revealed that Societe Generale has hired two investment banks to advise on the potential tie-up.
Europe has been host to a number of banking takeovers recently. ABN Amro is currently the subject of what is noted as the world’s largest takeover war, involving a Royal Bank of Scotland-led consortium and Barclays Bank.
