French-based utility company, Suez, has responded to Veolia’s proposal to acquire some stake in the the world’s largest private water provider which operates largely in the water and waste management sectors.
Veolia has been seeking to acquire a 29.9% stake in Suez from French gas and power utility Engie in a bid to create a “world champion of ecological transformation,” but SUEZ notes that Veolia persists in its proposals that are contrary to the Group’s corporate interest.
HERE IS THE STATEMENT BY SUEZ…
The SUEZ Board of Directors met this morning and noted that the proposals made on this day by Veolia remain vague and that they do not guarantee the interests of the shareholders and stakeholders that the Board is responsible for defending.
The SUEZ Board of Directors expressed in its press release of September 29 the prerequisites for a dialogue and reaffirmed its willingness to defend the Group’s shareholders and stakeholders. It will, in particular, put all the means at its disposal to avoid a creeping takeover or de facto control by its main competitor.
READ: Water and waste firm Veolia seeks stake in Suez
With regards to its shareholders, SUEZ notes that there is no guarantee that they will benefit from a cash offer at the same price and conditions as Engie. The cash offer referred to by the Chairman and CEO of Veolia since the press release of August 30 is not included in the document published today. This process creates a breach of equality in the treatment of the various shareholders.
With regards to the men and women working for SUEZ, we highlight again that Engie has refused the requests of the SUEZ staff representative bodies to participate in the information and consultation process and note that no real and lasting guarantee has been provided. The employment guarantees are deceptive.
As far as customers, and especially local authorities, are concerned, all the flaws in the industrial project already identified persist, particularly with regards to competition in essential public services, especially in France. This competition is currently ensured by the competition of two world leaders.
The Board is actively pursuing its work in order to enable the announcement, as soon as possible, of a solution that will suit all Suez shareholders.
The SUEZ Board asks the Board of Engie and its shareholders not to decide on the future of SUEZ under the conditions and timetable dictated by Veolia.