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| Paris to 'block any Societe bids' | Paris to 'block any Societe bids' |
| (about 2 hours later) | |
| French Prime Minister Francois Fillon has said his government will defend stricken bank Societe Generale against any hostile takeover bids from rivals. | French Prime Minister Francois Fillon has said his government will defend stricken bank Societe Generale against any hostile takeover bids from rivals. |
| Mr Fillon's comments come as the lender continues to struggle in the aftermath of a trading scandal that cost it 4.9bn euros ($7bn; £3.7bn). | Mr Fillon's comments come as the lender continues to struggle in the aftermath of a trading scandal that cost it 4.9bn euros ($7bn; £3.7bn). |
| He added that the government was also "very attentive" against any attempt to destabilise Societe Generale. | He added that the government was also "very attentive" against any attempt to destabilise Societe Generale. |
| Speculation that the bank could be a takeover target sent its shares up 9%. | Speculation that the bank could be a takeover target sent its shares up 9%. |
| "The government will not let Societe Generale become the object of hostile raids from other banks," said Mr Fillon. | |
| Despite the prime minister's comments, analysts said the lender was vulnerable both to takeover, and also the poaching of key staff. | Despite the prime minister's comments, analysts said the lender was vulnerable both to takeover, and also the poaching of key staff. |
| "Societe Generale is prey - nothing will be as it was," said Mac Pagezy, president of recruitment firm Eurosearch and Associes. | "Societe Generale is prey - nothing will be as it was," said Mac Pagezy, president of recruitment firm Eurosearch and Associes. |
| 'Change the captain' | 'Change the captain' |
| The prime minister's comments come after other senior French politicians have increased the pressure on Societe Generale's embattled chairman and chief executive Daniel Bouton. | The prime minister's comments come after other senior French politicians have increased the pressure on Societe Generale's embattled chairman and chief executive Daniel Bouton. |
| Prosecutors are trying to reverse Mr Kerviel's bail application | Prosecutors are trying to reverse Mr Kerviel's bail application |
| "Societe Generale is in a crisis situation," said economy minister Christine Lagarde in an interview on French television. | |
| "In a difficult moment, the board members are there to decide if the person in charge is the best placed to run the ship when it is pitching a bit, or whether they should change the captain." | "In a difficult moment, the board members are there to decide if the person in charge is the best placed to run the ship when it is pitching a bit, or whether they should change the captain." |
| Ms Lagarde also reiterated the government's annoyance that Societe Generale - France's second largest bank - did not inform it about the scandal until a day before it was publicly announced. | |
| French President Nicolas Sarkozy has already said that the bank's senior managers had to accept their share of responsibility for the action of the bank's alleged rogue trader - Jerome Kerviel. | French President Nicolas Sarkozy has already said that the bank's senior managers had to accept their share of responsibility for the action of the bank's alleged rogue trader - Jerome Kerviel. |
| 'Unauthorised deals' | 'Unauthorised deals' |
| Prosecutors are now appealing against Monday's decision by judges to release the 31-year-old on bail. | Prosecutors are now appealing against Monday's decision by judges to release the 31-year-old on bail. |
| SOCIETE GENERALE IN FIGURES Founded in 1864467bn euros in assets under management (as of June 2007)22.5 million customers worldwide120,000 employees in 77 countries Societe Generale share price | SOCIETE GENERALE IN FIGURES Founded in 1864467bn euros in assets under management (as of June 2007)22.5 million customers worldwide120,000 employees in 77 countries Societe Generale share price |
| Mr Kerviel is being investigated for breach of trust, falsifying documents and breaching computer security - but not the more serious charge of fraud. | Mr Kerviel is being investigated for breach of trust, falsifying documents and breaching computer security - but not the more serious charge of fraud. |
| His lawyers say Societe Generale is using him as a scapegoat to cover up the bank's wider losses caused by bad US sub-prime mortgage debt. | His lawyers say Societe Generale is using him as a scapegoat to cover up the bank's wider losses caused by bad US sub-prime mortgage debt. |
| Societe Generale says Mr Kerviel had a unauthorised position, or a bet, worth about 50bn euros on the future direction of European shares. | Societe Generale says Mr Kerviel had a unauthorised position, or a bet, worth about 50bn euros on the future direction of European shares. |
| That was more than the bank's value - about 35bn euros - and about the size of France's entire annual budget deficit. | That was more than the bank's value - about 35bn euros - and about the size of France's entire annual budget deficit. |
| To avoid that potentially catastrophic loss the bank had to unwind Mr Kerviel's trades, but that still cost it 4.9bn euros. | To avoid that potentially catastrophic loss the bank had to unwind Mr Kerviel's trades, but that still cost it 4.9bn euros. |
| Societe Generale said Mr Kerviel's background in handling the administration of trades enabled him to fool those monitoring traders' activities. | Societe Generale said Mr Kerviel's background in handling the administration of trades enabled him to fool those monitoring traders' activities. |
| It says Mr Kerviel invented deals that, on paper, balanced out his bets. | It says Mr Kerviel invented deals that, on paper, balanced out his bets. |