SocGen announces €4.8bn rights issue

by Gill Montia

Story link: SocGen announces €4.8bn rights issue

Société Générale has launched a €4.8 billion rights issue.

The French bank is proposing to regain its independence by repaying state support of €3.4 billion, while at the same time pursuing an acquisition.

The group is currently in talks to purchase the 20% stake in Crédit du Nord held by Dexia.

Such a move would give it outright ownership of Crédit du Nord, which comprises seven banks: Courtois, Kolb, Laydernier, Nuger, Rhône-Alpes, Tarneaud and Crédit du Nord, plus asset management company, Étoile Gestion, and brokerage firm, Gilbert Dupont.

The rights issue invites current shareholders to purchase two new shares for every nine held at a discount of over 26%.

Société Générale has also recently strengthened its Global Strategy and Economic Research teams with appointments in Paris and London.

Klaus Baader has joined the Economic Research team in London where he co-heads Eurozone Economic Research with James Nixon, replacing Véronique Riches-Flores.

Véronique Riches-Flores now leads the group’s Paris-based Thematic Research team, identifying areas of thematic interest in global economic trends.