PARIS (Reuters) – Veolia’s chief executive said Monday he would contact the head of Suez’s waste and water management rival to explain how he will begin communications between the two companies.
Suez has for months been resisting a takeover bid from Veolia, its longtime rival, which is also now the largest shareholder with a 29.9% stake.
French Finance Minister Bruno Le Maire told RTL radio that he had waited for a friendly deal between the two utility giants.
“There are strategic industries. We have two global leaders, Veolia and Suez. I always wanted a friendly union, ”said Le Maire.
Suez on Sunday said it had received a letter of intent from private equity groups Ardian and GIP (Global Infrastructure Partners), including an offer by those investors for Suez shares at a price of 18 euros ($ 22) per share. .
They said they were now willing to open a dialogue with Veolia with the aim of resolving the matter for the interest of all parties involved.
But Veolia CEO Antoine Frerot, while open to communication with Suez, told a conference call that he believed Ardian and GIP’s proposal to invest in Suez was not yet an alternative to Veolia’s own plan for Suez. take over.
Veolia bought the bet in Suez in October as a prelude to a full takeover bid at 18 euros per share, valuing the company at 11.3 billion euros.
Suez shares traded up 3.2% at 17.5 euros on the Paris stock market while Veolia was down 1.8% at 22.7 euros.
Reporting by Benjamin Mallet, written by Dominique Vidalon and Benoit Van Overstraeten, edited by Jane Merriman and David Evans