BNP Paribas said on Thursday it was considering an approach for Société Générale, its French banking rival, in a move that would create a European banking powerhouse.

However, investors gave the news a cool response as BNP shares fell 1.5 per cent, valuing its equity at €59.6bn ($88.5bn). SocGen shares rose 1.7 per cent to €83.20, valuing its equity at €38.8bn.