France opposed to any hostile SocGen bid

By Sudip Kar-Gupta

PARIS (Reuters) - A senior adviser to French President Nicolas Sarkozy said France remained opposed to any hostile bid for Societe Generale (SOGN.PA: Quote, Profile, Research), the French bank hit by a trading scandal.

In an interview with French newspaper Le Parisien to be published on Sunday, Sarkozy's chief of staff Claude Gueant said France preferred a "friendly" solution for SocGen should it end up as a bid target.

"For the public authorities, one thing is clear: a friendly solution would be preferable to a hostile attack from any kind of financial establishment," Gueant was quoted as saying.

On January 24, SocGen revealed 4.9 billion euros ($7.28 billion) of losses which it blamed on rogue trades made by Jerome Kerviel, a 31-year-old employee of the bank. Kerviel is under investigation.

Despite these losses, SocGen shares have recently risen on the back of bid speculation.

Leading French politicians have said they want SocGen to remain in French hands. Many analysts say this would mean that rival French banks BNP Paribas (BNPP.PA: Quote, Profile, Research) and Credit Agricole (CAGR.PA: Quote, Profile, Research) would be best placed to bid for SocGen.

RENEWED CRITICISM OF SOCGEN

Asked about long-standing speculation that BNP Paribas might bid for its cross-town rival, Gueant replied: "It's up to Societe Generale to determine its own future.