Rumours: Citigroup eyes Societe Generale

Shares in a French banking giant have risen after rumours surfaced that it could be the subject of a possible takeover bid.

French magazine Le Nouvel Observateur claimed Societe Generale had received interest from US bank Citigroup.

Without citing sources, the publication states that a large US bank, possibly Citigroup, has contacted the French authorities about a possible takeover of the Paris-based company.

Shares in Societe Generale rose by more than two per cent in early morning trade as a result of the article, making the bank's stock one of the morning's top performers on the French CAC40 index of blue chip shares.

European markets as a whole dipped slightly today as analysts predicted a rise in interest rates by international central banks in response to signs of economic strength returning to the global economy.

Societe Generale has refused to comment on the speculation, according to Reuters. Citigroup has previously been linked to both Societe Generale and UK bank Barclays.

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