Financial News: SocGen Share Price Bodes Well For Rights Issue
Friday February 29th, 2008 / 16h08
By Dawn Cowie Of FINANCIAL NEWS On the day French bank Societe Generale closes its EUR5.5 billion emergency rights issue to shareholders its share price showed reassuring signs of recovery - just over a month after the announcement of a EUR4.9 billion trading scandal. At the same time, shares in rival French banks were down 12%. SG's share price stood at EUR71.56 at 1450 GMT Friday, having closed at EUR70.96 on Jan. 24, when the trading loss incurred by rogue trader Jerome Kerviel was announced. The share price reached a low of EUR66.51 on Jan. 28. BNP Paribas' stock has fallen 12% in the same period to EUR59.97, while Credit Agricole's shares had fallen by the same percentage to EUR18.08. A banker close to the SocGen rights issue said: "The management team has been meeting with shareholders, explaining its new business plan and the measures taken internally to improve risk controls. The fact that the share price has held up throughout the deal roadshow is a good sign." The bank, which has pledged a return to growth by 2010, offered investors the right to buy one share for every four held at a price of 47.50. The price represents a discount of 27% to the closing share price on February 21, the first day of the rights issue. JP Morgan and Morgan Stanley are leading the underwriting syndicate on the deal, while Credit Suisse and Merrill Lynch are co-bookrunners. SocGen Chairman Daniel Bouton - who is giving up his bonus and six months worth of salary because of the EUR4.9 billion trading loss - spent 1.5m on shares in the company's rights offer on Feb. 21, according to the French financial market regulator. A total of 7% of the bank's stock is held by employees and former employees via the group employee share ownership plan. Other shareholders with over 2% of share capital include UK insurer Groupama, Japanese insurer Meiji Yaduda Life and French state-owned bank CDC. Web site: http://www.efinancialnews.com
Soci été Générale figure parmi les 1ers groupes bancaires français. Le Produit Net Bancaire par activité se répartit comme suit :
- banque de réseau...
