The board of Societe Generale is due to meet later today and may give the go-ahead for a €5.5 billion capital increase needed to plug the losses caused by rogue trader Jerome Kerviel, according to French newspaper Le Figaro
With global share markets crumbling and doubts swirling over SocGen's independence, the bank is expected to offer a steep discount to ensure the operation's success, traders said today.
The bank is also under pressure to secure the capital increase and stake out its future amid persistent speculation of a takeover bid for SocGen worth at least €40 billion.
Historic rival BNP Paribas, France's largest listed bank, has said it is considering the matter. French bank Credit Agricole may also be interested and there is speculation of an approach from Britain's HSBC.
SocGen shares rose 2.2 per cent to €80.95 today.
France has warned off foreign predators saying it would prefer a local solution for SocGen and that any merger must be friendly.
