As French banking authorities begin to consider the fate of the bank he chairs, Mr Daniel Bouton has warned that "the Societe Generale is not for sale" and has denounced the French government's "witch hunt" against foreign investors.
French regulators, who meet today to consider the situation, have postponed until next week publishing a decision on whether Banque Nationale de Paris should be allowed to become the dominant shareholder in SocGen.ete Generale.
The decision was expected to be made public today by the French Committee of Credit Establishments and Investment Enterprises, the regulator in charge of financial stability, and its postponement may signal new negotiations to seek a friendly solution to the situation.
In an interview with today's Le Monde, conducted before news of the postponement broke, Mr Bouton admitted defeat in his six-month battle with BNP for control of Paribas investment bank. "I hope that BNP-Paribas will be a big success," Mr Bouton said, announcing his resignation from the Paribas board which he joined in the doomed attempt to create SG-Paribas.
Mr Jean-Claude Trichet, the governor of the French central bank, will chair a meeting of the credit institutions committee this evening to discuss whether BNP will be allowed to keep the 36.8 per cent of SocGen shares it gained in the takeover battle. However, sources last night said a final decision would not be taken until a second meeting next week.
French authorities fear SocGen will be bought by a foreign bank if BNP relinquishes its hold.
"We don't need to have ourselves bought by anyone," Mr Bouton said. "We are one of the very biggest European banks. Our share price at the end of last week was €21 higher than what BNP offered. The shareholders who held on to their stocks saw them appreciate significantly over those who traded them in."
SocGen has suggested it will seek alliances beyond French borders, against the wishes of Mr Trichet and the French Finance Minister, Mr Dominique Strauss-Kahn. "There is something absurd about this sudden witch hunt against foreigners when French capitalism is so weak," Mr Bouton told Le Monde.
The weakness to which he referred is the lack of pension funds in France. US and British pension funds are major investors on the Paris Bourse.
Mr Bouton disputed the view that SocGen would be vulnerable to foreign takeover if BNP was forced to surrender its acceptances. His bank is only 20 per cent smaller than the Dutch ABNAmro, and is equal in size to the Spanish bank BSCH, with a stock market capitalisation of more than €20 billion, he says.
Asked if he had immediate plans for a partnership he said that after the six-month battle, "we need a rest and to devote ourselves to our clients and to our plans for development.
"We must reflect on the types of partnerships that we want to build . . . on agreements that will enable us to become a European actor on a scale with the big American banks."
