Veolia could raise bid for Suez stake, CEO says

[PARIS] Veolia will not rule out increasing the price it has offered for a stake in rival French utility Suez, chief executive officer (CEO) Antoine Frerot said in a radio interview on Thursday.

Veolia last month offered 2.9 billion euros (S$4.64 billion) for a 29.9 per cent stake in Suez owned by Engie, with a view to subsequently taking full control of Suez by buying up more shares.

"Increasing the bid price is part of the possibilities," Mr Frerot said on BFM Business radio, adding he would meet on Thursday with Jean-Pierre Clamadieu, board chairman Engie, Suez's biggest shareholder.

Engie rejected Veolia's initial advance but has said it will consider a higher offer.

Suez sees Veolia's bid plan as hostile and is working on finding a consortium of investors to put together a rival bid for Engie's stake.

On Wednesday, Suez said it had put its French water business in a newly created foundation to preserve its "integrity".

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Mr Frerot said Suez's move to lodge its French water assets in the foundation was "a dirty trick" that was crimping Suez shareholders' rights. But the Veolia CEO also said this would not discourage its bid.

"Suez leadership is defending its job rather than the company and is betraying Suez, Engie and France," he said. Anticipating possible antitrust hurdles, Veolia has already said it would sell Suez's French water activities to Meridiam Infrastructure if the acquisition goes through to preserve competition and employment.

Suez said the foundation, which has been set up under Dutch law, will be managed by a majority of representatives or former representatives of Suez employees.

REUTERS