BNP has met govt on possible SocGen bid: source

By Mathieu Robbins and Sudip Kar-Gupta

LONDON/PARIS (Reuters) - Executives of French bank BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz) sounded out the French government several weeks ago over a possible bid for scandal-hit rival Societe Generale (SOGN.PA: Quote, Profile, Research, Stock Buzz), said a source familiar with the matter.

The source told Reuters on Thursday that the meeting allowed BNP Paribas, France's biggest listed bank, to evaluate whether it would face opposition if it were to make an offer for SocGen, which has been weakened by a huge internal trading scandal.

Earlier this month, a source told Reuters BNP Paribas was not planning a hostile bid for SocGen but could be interested in a friendly deal. BNP is also expected to bide its time while SocGen executes a 5.5 billion euro ($8.3 billion) rights issue.

A meeting with top officials was attended by Chairman Michel Pebereau and Chief Executive Baudouin Prot and took place in the framework of BNP evaluating, in the days after the January 24 announcement by SocGen of the trading scandal, whether to seriously contemplate bidding for its rival, said the source.

Many banks looked at the stricken French bank at that time.

"The meeting took place at least two or three weeks ago," said the source.

BNP Paribas just failed to buy SocGen in 1999 and the latter's recent problems have rekindled long-standing speculation of a tie-up between France's two biggest listed banks.

President Nicolas Sarkozy has supported a policy of "economic patriotism" and a BNP/SocGen combination would create a global top-five bank by market capitalization, headquartered in Paris. But it might also lead to job losses.