BNP Paribas finally confirmed to the market on Wednesday that it is not going to bid for Societe Generale, which almost collapsed at the beginning of the year, thanks to a scandal that saw trader Jerome Kerviel bet EUR 50bn of the bank's money, ultimately losing it EUR 4.9bn.
Kerviel is currently in
“Given the persistent rumours,” BNP Paribas said in a statement, “BNP Paribas clarifies that it has ceased to consider a potential tie- up with Societe Generale.”
Paribas believes “that the conditions, which would have allowed it to realise a shareholder value creating merger, are not met.”
With all the economic volatility on the world's capital markets, Paribas would rather mitigate any financial risk-taking on behalf of its shareholders.
The bank believes it “is well positioned to continue its development by combining its expertise in retail banking (over 50% of the group's revenues), corporate and investment banking (28%) and asset management and services (18%).”
SocGen's shares closed at EUR 67.19 on Tuesday, valuing the bank at around EUR 30bn (US$47bn) by market value.