UniCredit and Societe General rumoured to be disussing a tie-up

Italian bank UniCredit and Societe Generale are rumoured to be discussing a tie-up with several top-flight consultants, including Daniel Bouton of Rothschild.

Speculation about the two firm's combining was rekindled after UniCredit appointed chief executive Jean Pierre Mustier, a former manager at Societe Generale, to the top job back in 2016. Bouton is also a former chairman of Societe Generale, resigning in 2009 following a trading scandal a year earlier.

Italian media outlet MF claimed in an unsourced report on Friday that talks between the two banks over a tie-up or acquisition were ongoing.

Back in June, the Financial Times reported that UniCredit had considered merging with its French rival, but the unstable political climate in Italy had forced the pair to push their plans back.

Mustier said earlier this month that the bank was focused on organic growth in the short-term, but stated that its next plan could very well involve external growth.

"Europe needs strong pan-European banks and we intend to be a pan-European winner," he said.

Societe Generale, UniCredit and Rotschild did not immediately reply to requests for comments.

As of 1440 BST, UniCredit shares were up 0.88% to €13.24 each, while SocGen had picked up 0.99% to €36.30 each.