Shares in French bank BNP rose in a falling market on Friday after a newspaper report that smaller local rival Societe Generale was mulling a tie-up that would create a combined bank ranking number three in Europe.Les Echos said the head of Societe Generale had hired investment banks to advise on the possibility of a merger with larger domestic rival BNP Paribas.
The newspaper said both a friendly deal and hostile bid were being examined but that Societe Generale's management was divided over the idea. It named one of the banks advising SocGen as Morgan Stanley.
"We do not comment on rumors," a Societe Generale spokeswoman said.
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