Photographer: Nathan Laine / Bloomberg
Photographer: Nathan Laine / Bloomberg
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Suez SA said it had received a letter of intent from two funds recommending a friendly takeover, the latest development in the French water company’s efforts to combat being swallowed up by a competitor. Veolia Environment SA.
Private equity firms Ardian and Global Infrastructure Partners would contribute 18 euros ($ 22), Suez said in a statement on Sunday, adding that its board “unanimously welcomes this approach. . “
The proposal matches one that Veolia has said it intended to do, and Suez said it would provide “a friendly solution for the interest of all stakeholders. ”
In a separate statement, Ardian and GIP said the offer would be friendly to both Suez and Veolia and made without suing Suez.
The latest move is in a months-long battle between rivals, who are playing out in their boardrooms, the courts and the French political arena.
Earlier this month Veolia announced its proposed takeover bid for Suez as CEO Antoine Frerot seeks to build a global giant in water treatment and management. waste. The board and directors of Suez have opposed the effort, saying they cannot hold talks until there is a formal offer.
Suez CEO Bertrand Camus has been working on another proposal, even after Veolia bought a 29.9% stake in October as a prelude to a full takeover.
Suez will buy $ 843 million of assets amid a takeover challenge
Veolia intends to offer a share of 18 euros per Suez with share rights, as long as Suez’s management does not take away value with decisions such as the sale of major assets in Spain, Chile, the U.S., the UK and Australia, Frerot has said.
For Suez to take over its success, a number of trust issues need to be resolved. Veolia has agreed to hand over the French Suez water business to the infrastructure manager of Meridiam, and said it could sell some international water assets to those assets as well.
In an effort to complicate Veolia’s claim, Suez devised a legal way to make the sale of these French water funds subject to permission from the customary board. There is a French court Suez ordered not to make this permanent without the consent of shareholders. Suez is now trying to reverse that decision.