French bank Société Générale is studying its options today as a newspaper said a second domestic rival had hired advisers to consider a takeover.
Shares in SocGen, hit by a rogue trader scandal, rose as much as 4.5 per cent in early trade after Les Echosnewspaper said Crédit Agricole, France's third-largest bank by value, had hired Lazard and its own investment bank, Calyon, to study a bid.
BNP Paribas, France's biggest listed bank, confirmed yesterday it would look at making an offer for SocGen, the number two player, which was weakened last week when it revealed €4.9 billion in trading losses it blamed on trader Jerome Kerviel.
BNP failed in 1999 to buy SocGen, which now has a market value around €40 billion, and since the trading scandal broke there has been speculation of a joint bid in which Crédit Agricole would take SocGen's investment banking arm and BNP its retail business.
SocGen has said it is determined to stay independent, and today a source said it was studying how it could avoid a low-priced takeover.
SocGen's strategy will focus on convincing investors that the bank, whose share price has halved since last spring, is worth a lot more than its current market price, said the source.
Around midday, the shares were up 3.5 per cent €86.10.
In the event of an unsolicited or hostile offer, SocGen could seek a white knight among Europe's banks, said the source. That would antagonise the French government, which has signalled it wants SocGen to remain French.