SocGen Shares Jump on HSBC Bid Speculation
Shares in Societe Generale jumped more than 6 percent Wednesday on market speculation that major bank HSBC was making a bid for the French bank.
Societe Generale became vulnerable to being taken over by rival banks following a trading scandal which caused it a loss of nearly 5 billion euros ($7.3 billion).
HSBC told Reuters it does not comment on market speculation. Societe Generale also said it would not comment.
Officials in the French government have made it clear they do not favor bids from foreign banks for Societe Generale, France's second-largest listed bank.
French bank BNP Paribas, the country's largest listed bank, has said it was looking into the possibility of a bid for Societe Generale, which rejected an approach from BNP in 1999.
Credit Agricole could also be interested.
Societe Generale's shares gave up some of their gains to close 3.2 percent higher.