French-based utility company SUEZ has released a statement, saying its Board of Directors has deemed competitor Veolia’s offer to acquire a 29.9% stake in the company “a hostile approach” and concluded that the move “is against the best interests of SUEZ and all its stakeholders, and in particular its shareholders, its employees and its clients”.
On 30 August, Veolia announced its offer to Engie for the acquisition of 29.9% of the SUEZ shares it holds, with a proposed price of €15.50 (US$18.34) per SUEZ share.
In its statement, SUEZ declared, “The Board of Directors has continued its thorough review of Veolia’s proposed transaction, which carries significant uncertainties and is subject to criticism on a number of fundamental aspects.
The overall structure of the transaction contemplated by Veolia is questionable and exposes SUEZ and its shareholders to a long period of disruption for the Group with a risk of a takeover on an unacceptable basis.
As such, the Board of Directors of SUEZ affirms its full support to the management team to execute and accelerate the SUEZ 2030 strategic plan and to explore alternatives to Veolia’s proposal that are in the interests of the group and all its stakeholders.”