Gouveia e Melo continua a perder terreno

[acintra]

31/01/2008


(Combines items, adds background)

PARIS, Jan 31 (Reuters) - France appeared on a collision course with the European Union on Thursday after Brussels warned Paris not to interfere with any foreign bids for Societe Generale in the wake of its rogue trading losses.

A bid by a foreign player for France's second-biggest listed bank would not be surprising, said Jean-Claude Juncker, chairman of the Eurogroup set of eurozone nations, while French officials lined up to protect the bank.

"If someone coming from abroad wanted to do good things with SocGen....why would that bother me?," Juncker, who is also the prime minister of Luxembourg, said on Europe 1 radio.

France's European Affairs minister Jean-Pierre Jouyet however said there was no "no risk of a bid" on Societe Generale , seen by many as a takeover target after huge losses from a trading scandal.

"The bank is solid. There is no risk of a bid," Jouyet told LCI television station.

SocGen's woes have reignited speculation that French rival BNP Paribas might be tempted to bid for SocGen. BNP Paribas made a failed bid for SocGen in 1999.

Analysts say foreign banks including Italy's Unicredit , Santander , BBVA or HSBC are also on a long list of potential bidders for the weakened bank.

A senior adviser to President Nicolas Sarkozy