Suez: share pretty flat after rejecting Veolia's offer
(CercleFinance.com) - The Suez share is is up around 0.
5% in mid-afternoon trading on Tuesday, after board of directors rejected Veolia's offer to buy Engie's 29.9% stake in the utilities group's capital, before making a potential takeover bid.
Reacting to this unsolicited approach, the Board considered that Veolia's offer raises concerns about the future of water treatment and distribution activities in France and regarding employment, considering the level of synergies expected.
"The strategy proposed by Veolia would generate disynergies and loss of opportunity in France and abroad. In addition, the complexity of the chosen process would lead to two years of operational disruption," it added.
The board has set up an ad hoc committee that will specifically examine the transaction proposed by Veolia, "with in mind the company's social interest for all the stakeholders of SUEZ and the creation of value for all its shareholders".
Copyright (c) 2020 CercleFinance.com. All rights reserved.
5% in mid-afternoon trading on Tuesday, after board of directors rejected Veolia's offer to buy Engie's 29.9% stake in the utilities group's capital, before making a potential takeover bid.
Reacting to this unsolicited approach, the Board considered that Veolia's offer raises concerns about the future of water treatment and distribution activities in France and regarding employment, considering the level of synergies expected.
"The strategy proposed by Veolia would generate disynergies and loss of opportunity in France and abroad. In addition, the complexity of the chosen process would lead to two years of operational disruption," it added.
The board has set up an ad hoc committee that will specifically examine the transaction proposed by Veolia, "with in mind the company's social interest for all the stakeholders of SUEZ and the creation of value for all its shareholders".
Copyright (c) 2020 CercleFinance.com. All rights reserved.