Société Générale, France's second largest bank, today raised €5.5 billion through a rights issue in an attempt to end the crisis sparked by one of the biggest rogue trader scandals in history.

Investors applied for nearly twice the number of stocks Société Générale offered in the capital raising exercise where shareholders were awarded one share for every four they hold at €47.50 each - a 39 per cent discount to the bank’s share price when the issue was launched.

The bank is hoping today's deal will help it fight off takeover interest from the likes of BNP Paribas, France’s largest bank, although it appears investors bought into the rights issue on the prospect that Société Générale will be acquired.

Société Générale is still reeling after it discovering one of its traders, Jérôme Kerviel, ran up a €4.9 billion loss after making a series of unauthorised bets on European futures markets.

Mr Kerviel's losses caused the bank's profits to fall by 82 per cent €947 last year.

In a statement, Société Générale sought to suggest that it was now clear of the turmoil the trader had provoked. It said: "This operation will allow Société Générale to pursue its development in sectors and regions with growth potential."

The bank added that that its tier 1 ratio, a measure of financial solidity, had been restored to 8 per cent.

Société Générale's share price rose 2.32 per cent to €65.57 today.

La Caisse des Dépôts et Consignations, the French state-owned investment and savings house, said it had taken up the offer and increased slightly its 2.31 per cent stake in Société Générale.

Groupama and CNP, the French insurers, are also understood to have subscribed to the rights issue, along with Dexia, the Franco-Belgian bank.

In the latest legal development, Mr Kerviel, who is facing charges of breach of trust, fabricating documents and illegally accessing computers, confronted his desk manager at Société Générale, Eric Cordelle, at a judicial hearing.

Mr Cordelle said he reminded the junior trader to respect authorised limits as recently as January.

The combined ceiling for all the traders on the Delta One desk, where Mr Kerviel worked, was €125 million. Mr Kerviel's positions alone came to €50 billion.

Mr Kerviel said his superiors knew he had exceeded the limit, but turned a blind eye to his activities.

Le Figaro, the French newspaper, reported that when Mr Kerviel was ordered to return from a weekend away to explain himself, he sent a text message to a colleague saying: 'I don't know if I'm going to come or throw myself under a train.'

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