Mumbai: France's top bank BNP Paribas today confirmed it was considering a bid for crisis-hit Societe Generale even as the French government faced criticism from other European Union members for issuing warnings against hostile bids.

"We are studying it because all Europe's banks are studying it," said a spokesman for BNP Paribas.

BNP Paribas had, in 1999, made an unsuccessful attempt to take over SocGen. Speculation has been strife since then of a merger between the two.

Foreign banks, including Britain's HSBC and Barclays, Germany's Deutsche Bank, Spain's Banco Santander and Italy's UniCredit have also been cited as potential bidders for the bank.

But speculation has been rife that the French government is planning to back a merger between BNP Paribas and Societe Generale to pre-empt a foreign takeover.

French prime minister Francois Fillon fired the first warning on Tuesday, when he said "the government is determined that Societe Generale remains a great French bank."

"The state will not remain just a bystander and leave Societe Generale at the mercy of any predator," Henri Guaino, senior adviser to President Nicolas Sarkozy told BFM television.

EU Internal Market Commissioner Charlie McCreevy, meanwhile, warned France that competition rules would apply to the treatment of any bidders.

"In a situation of potential takeover, free movement of capital rules provide for undiscriminatory treatment of potential bidders," a McCreevy spokesman quoted him as saying.

A week after reporting 4.8 billion euro ($7.1 billion) loss, allegedly caused by a rogue trader, Societe Generale said it is strong enough to stay independent.

The bank said it is planning to raise 5.5 billion euros in fresh capital to fend off potential takeover bids.

Morgan Stanley, one of two investment banks underwriting a planned capital increase to plug the hole caused by the rogue trades, meanwhile, said it had cut its price target on the shares to 115 euros from 154.

SocGen shares were trading at 83.70 euros, up 2.3 per cent, giving it a market value of roughly 40 billion euros ($59 billion).