Shares in French banking group Societe Generale shot up to a record high point this afternoon on rumours than Italian bank Unicredit is planning a takeover bid.
In afternoon trade the shares had climbed 11% to €160.84, after earlier hitting a peak of €162, on an overall market which was 1.46% higher.
Dealers said the share had soared due to reports, carried in German daily Handelsblatt, that Societe Generale and Unicredit are in takeover talks.
The newspaper, quoting financial sources, said the chiefs of the two companies, Daniel Bouton of Societe Generale and and Alessandro Profumo of Unicredit, did not have a concrete plan as yet.
Dealers quoted by Thomson Financial News' AFX wire however pointed to market rumours that the two companies were discussing a friendly takeover which would value Societe Generale at €175 a share.
