Menu
Equities Finance and Banking

UniCredit shares rise on SocGen tie-up talk

Share this article!

UniCredit shares are trading higher Monday, as are SocGen shares, amid a report from the Financial Times suggesting the two are discussing a potential tie-up. Its reported that UniCredit’s CEO has been working on the possible plan, for some months.

By 1020 BST, UniCredit shares were 0.61% higher at €14.78, while SocGen shares were up 1.77% at €38.20.

Move could create Europe’s largest bank

The FT suggests Italian bank, UniCredit’s CEO Jean-Pierre Mustier, who was previously head of SocGen's investment banking sector, has been working on the potential tie-up plan with French Bank Societe General, for a number of months.

The FT also reports that SocGen executives have been considering the option of merging or working more closely with UniCredit.

If the tie-up were to go ahead, it would create the largest bank in Europe.

However, according to a Reuters report, neither bank is prepared to comment on the FT report.

The report also states that while the political indecision in Italy has likely delayed any talks, the possible timetable for a merger between the two could see them join forces in around 18 months from now.

SocGen litigation update

While neither bank is currently prepared to comment on the merger talk reports, earlier Monday, SocGen said it has reached initial agreements with the US Department of Justice (DOJ) and the US Commodity Futures Trading Commission over its IBOR submissions.

In addition, the French Bank has also made an initial agreement with the US DOJ and the French Parquet National Financier (PNF) over investigations relating to some Libyan counterparty transactions.

“The PNF and DOJ agreements require judicial approval and have been submitted to the competent French and US courts for hearings on June 4th and June 5th, respectively,” SocGen said in a press release.

“The monetary penalties to be paid are fully covered by the provision allocated to the IBOR and Libyan matters and booked in Societe Generale's accounts.  As a result, these payments will have no impact on Societe Generale’s results,” the bank said.

It added that it was not able to comment further on these details.

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.