Following my previous article wondering if a predator would go after a weakened Societe Generale, to the surprise of absolutely no-one we have the predictable situation of BNP Paribas lifting its corporate head over the parapet and expressed some interest in SocGen. Veterans of Banque Paribas will recall a bitter struggle in 2001 between SocGen and BNP for control.
From memory, the then-Paribas board were very much in favour of the offering from SocGen.
Alas, it was not to be: BNP simply showed the shareholders the money.
7 years and a bitter integration programme later (1 huge de-nationalised bureaucacy consuming a lean, mean and strongly-independent albeit smaller bureaucracy), it seems that BNPP may consume SocGen with the same appitite as Paribas. Would the French Government stop this on the grounds of competition? Well, they didn't prevent Credit Agricole and Credit Lyonnais sealing the knot. SocGen's retail business must be a tempting morsel for BNPP, with the investment banking arm possibly going to the BFI sector of BNPP. Remember, the French Government would prefer a SocGen staying in French hands at almost any cost to the French taxpayer.
Think about it...
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