Shares of Societe Generale, the French bank buffeted by a trading loss of 4.9 billion euros (US$7.2 billion), fell 7 percent on Wednesday after a rival bank, BNP Paribas, confirmed that it had no plans to try a takeover.
Speculation that BNP Paribas might bid for Societe Generale had simmered for weeks after the disclosure in January that a trader, Jerome Kerviel, had exposed Societe Generale to nearly 50 billion euros of risk through a series of unauthorized speculative bets.
"BNP Paribas clarifies that it has ceased to study the possibility of a tie-up with Societe Generale," BNP Paribas said in a statement, adding that the conditions that would have allowed it "to realize a shareholder-value-creating merger, are not met."
Shares of Societe Generale closed on Wednesday in Paris at 62.44 euros, down 4.75 euros.
BNP Paribas said in late January that it was studying a bid for Societe Generale. The declaration on Wednesday means that, according to French market rules, BNP Paribas is barred from making an offer for at least six months -- dashing hopes of speculators who had been anticipating a possible bidding war.
A person with knowledge of BNP Paribas' merger deliberations said the bank was not interested in any deal that would be perceived as hostile by management at Societe Generale.
"Societe Generale has made very clear that it prefers to be independent," said the person, who requested anonymity because he was not authorized to comment. The bank was "reluctant to enter into a deal on anything other than a friendly basis."
Societe Generale's beleaguered chairman and chief executive, Daniel Bouton, has succeeded in fending off mergers since taking the helm in 1997.
In 1999, Bouton thwarted a move by BNP to forge a three-way combination with Paribas. When speculation of an alliance with UniCredit mounted last spring, analysts say Bouton once again resisted.
BNP Paribas was seen by many analysts as a natural buyer for Societe Generale. But several other European financial powerhouses, including BBVA of Spain and HSBC Holdings of Britain, were also considered potential bidders.
"As a French bank, they are very well placed to evaluate the market and they have decided that it doesn't make sense in this environment," Ion-Marc Valahu, head of trading at Amas Bank in Geneva, said of BNP Paribas. "If they don't see the logic, then it's unlikely that anyone else will either."
WAITING GAME: The US has so far only offered a ‘best rate tariff,’ which officials assume is about 15 percent, the same as Japan, a person familiar with the matter said Taiwan and the US have completed “technical consultations” regarding tariffs and a finalized rate is expected to be released soon, Executive Yuan spokeswoman Michelle Lee (李慧芝) told a news conference yesterday, as a 90-day pause on US President Donald Trump’s “reciprocal” tariffs is set to expire today. The two countries have reached a “certain degree of consensus” on issues such as tariffs, nontariff trade barriers, trade facilitation, supply chain resilience and economic security, Lee said. They also discussed opportunities for cooperation, investment and procurement, she said. A joint statement is still being negotiated and would be released once the US government has made
NEW GEAR: On top of the new Tien Kung IV air defense missiles, the military is expected to place orders for a new combat vehicle next year for delivery in 2028 Mass production of Tien Kung IV (Sky Bow IV) missiles is expected to start next year, with plans to order 122 pods, the Ministry of National Defense’s (MND) latest list of regulated military material showed. The document said that the armed forces would obtain 46 pods of the air defense missiles next year and 76 pods the year after that. The Tien Kung IV is designed to intercept cruise missiles and ballistic missiles to an altitude of 70km, compared with the 60km maximum altitude achieved by the Missile Segment Enhancement variant of PAC-3 systems. A defense source said yesterday that the number of
Taiwanese exports to the US are to be subject to a 20 percent tariff starting on Thursday next week, according to an executive order signed by US President Donald Trump yesterday. The 20 percent levy was the same as the tariffs imposed on Vietnam, Sri Lanka and Bangladesh by Trump. It was higher than the tariffs imposed on Japan, South Korea and the EU (15 percent), as well as those on the Philippines (19 percent). A Taiwan official with knowledge of the matter said it is a "phased" tariff rate, and negotiations would continue. "Once negotiations conclude, Taiwan will obtain a better
FLOOD RECOVERY: “Post-Typhoon Danas reconstruction special act” is expected to be approved on Thursday, the premier said, adding the flood control in affected areas would be prioritized About 200cm of rainfall fell in parts of southern Taiwan from Monday last week to 9am yesterday, the Central Weather Administration (CWA) said. Kaohsiung’s Taoyuan District (桃源) saw total rainfall of 2,205mm, while Pingtung County’s Sandimen Township (三地門) had 2,060.5mm and Tainan’s Nanhua District (南化) 1,833mm, according to CWA data. Meanwhile, Alishan (阿里山) in Chiayi County saw 1,688mm of accumulated rain and Yunlin County’s Caoling (草嶺) had 1,025mm. The Pingtung County Government said that 831 local residents have been pre-emptively evacuated from mountainous areas. A total of 576 are staying with relatives in low-lying areas, while the other 255 are in shelters. CWA forecaster
RSS