Veolia says it won’t launch hostile bid for Suez By Reuters

Veolia says it won't launch hostile bid for Suez By


2/2
© Reuters. Logo of Suez

2/2

By Mathieu Rosemain and Gwénaëlle Barzic

PARIS (Reuters) – French utility Veolia (PA:) said on Sunday it would not launch a hostile bid for the remaining shares of rival Suez (PA:), following its move to buy the 29.9% Suez stake owned by power group Engie. (PA:)

Veolia said on Oct. 1 it would buy Engie’s stake as a prelude to a full takeover bid and marking a breakthrough after weeks of hostilities between the parties.

Veolia “unconditionally commits not to file a hostile takeover bid following the sale of the shares held by Engie in Suez,” the group said in a statement, adding that any bid for the remaining capital would require approval from Suez’s board.

Veolia also told Suez’s chairman it would extend the scope of the assets eventually sold to the would-be buyer of Suez’s French water activities to international water assets.

The activities considered for sale to make the Veolia-Suez deal possible would yield total turnover of 5 billion euros ($5.86 billion), including the 2.2 billion euros generated by Suez’s French water unit.

Veolia has been trying to persuade Engie to sell the Suez stake, including by raising its bid to 3.4 billion euros. The additional guarantees it offered on Sunday to Engie’s board make that acquisition possible, Veolia said in the same statement.

French Finance Minister Bruno Le Maire, who has appealed for dialogue, said on Thursday the Suez-Veolia situation was moving in the “right direction.” The French state is a major Engie shareholder.

Suez had rejected Veolia’s overtures from the outset and created hurdles to a deal, including by putting its French water business in a foundation.

($1 = 0.8537 euros)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME