Citerne may get SG top job amid calls for outsider

By Sudip Kar-Gupta

PARIS (Reuters) - Societe Generale co-Chief Executive Philippe Citerne is a leading contender to replace Daniel Bouton in the short term, should Bouton leave after a massive trading scandal hit the French bank.

But fund managers and analysts said SocGen might do better to get someone from outside if Bouton threw in the towel.

"They (Socgen) are going to prefer getting someone from within the company," said Agilis Gestion fund manager Arnaud Scarpaci. "In the short term, Citerne might be the best solution," he added.

Another Paris-based fund manager who holds SocGen shares said bringing in an outsider might restore confidence better than sticking with someone from the Ancien Regime.

"It's going to be difficult for an outsider but maybe that's the price they have to pay to restore investor's confidence," said the fund manager, who declined to be named.

For a long time, SocGen had been grooming its investment banking chief Jean-Pierre Mustier as heir apparent to Bouton.

However, Mustier has also been tarnished by the scandal arising from 4.9 billion euros (3.6 billion pounds) of losses caused by alleged rogue deals by 31-year old trader Jerome Kerviel.

Kerviel was placed under investigation for breach of trust and other misdeeds on Monday, but judges threw out the stronger accusation of fraud made by the bank and freed him on bail.