BNP Pushes for Control of Societe Generale

BNP--set to become France’s largest bank after winning a majority stake in rival Paribas--said it’s pressing ahead in its campaign to take control of Societe Generale, another leading financial institution. After six months of bitter wrangling among the country’s top three private-sector banks, France’s market regulator said BNP had won only a partial victory in its hostile bid to take over both SG and Paribas. BNP had taken 65.1% of Paribas capital but only managed to secure 36.8% of SG’s capital, which brings just 31.5% of its voting rights. The outcome means BNP has won Paribas and will become France’s biggest bank with a market capitalization of $35.6 billion. Paribas--known for its banking expertise, prized financial services division and attractive portfolio of industrial holdings--is set to merge with BNP, which has a large domestic banking operation. Given BNP’s resounding victory, trumping a rival friendly offer from SG, France’s banking regulatory agency, set to meet Tuesday, is expected to give BNP the green light to merge with Paribas and ask SG to return to shareholders the 26% it now holds.