The head of France’s Medef employers’ group said yesterday that the nationality of a potential buyer for Socit Gnrale, which has been hit by a rogue trader scandal, should not be an issue even though she would prefer it to be French, Reuters reports.
Asked if she would be shocked if Soc Gen ended in the hands of a European group, Laurence Parisot, head of the largest union in France, told LCI television: “I think that all projects are possible for Socit Gnrale and I wish the best for the company, its shareholders, clients and staff.”
She did not specify if the best scenario for Socit Gnrale was to remain independent or seek an alliance with another French bank or a foreign bank, Reuters reports. She did say she would prefer a French buyer, but “the nationality of a possible buyer should not be a criterion.”
On Monday Socit Gnrale revealed the extent of its problems with a large discount of 39% for existing shareholders
The Financial Times reports that Soc Gen is not necessarily ripe for takeover. This is because years ago CEO and Chairman Daniel Bouton capped the voting rights of shareholders at 15%.
Additionally, the bank has a core of friendly shareholders, including employees, state banks, large French institutions and a few foreign friends, accounting about 30% of the voting rights.This means any bidder wanting to overcome this 15% limit would have to secure more than 70% of the free float in order to have a chance of success. But the discount is surely tempting to both friends and rivals of Soc Gen, the FT reports.
Daniel Bouton is not budging his position as head of the struggling bank, though President Nicolas Sarkozy has called for it. But the FT points to the irony in all of this: “By publicly calling for Mr Bouton’s resignation, President Nicolas Sarkozy seems to have become the banker’s best and most unlikely ally. For, in so doing, Mr Sarkozy has only reinforced the resolve of the SocGen board to display its independence from political interference by keeping Mr Bouton in place.”