Sweet words and legal roadblocks: all-out offensives in the Suez-Veolia duel - France 24

Paris (AFP)

The time is no longer for speckled foils: the CEO of Veolia, who seeks to get his hands on Suez, described Thursday as "pitiful" the decision of his rival to create a legal device greatly complicating any sale of his Water branch French.

The two enemies of water treatment are on the offensive in all directions, in the field of words, communication or law.

Because September 30 expires the offer made by Veolia to Engie to buy back, for 2.9 billion euros, its 29.9% of shares in Suez.

Suez, who refuses to be absorbed, asks for time to be able to present a counter-offer.

It is in this tense context that the leaders of Suez announced on Wednesday evening the creation of a foundation under Dutch law intended to oversee its Water France activity and to make any sale impossible for four years without the agreement of the shareholders.

Water, Suez's historic business, is at the heart of the battle, with Veolia planning, in its merger project, to sell it in order to comply with competition law.

On Wednesday, Suez took care to add a clause: in the event of a change of control of the group, only the foundation, headed by three people, including a staff representative, can authorize a transfer of water and no longer the board of directors. 'administration.

It is a "last somewhat pitiful maneuver of desertion and transfer abroad of the Water France activity", reacted the CEO of Veolia Antoine Frérot, who was to meet Thursday afternoon his counterpart Engie Jean- Pierre Clamadieu, to "analyze" the situation.

The leaders of Suez "transfer to a tax haven, the Netherlands, one of their most important assets", he declared on BFM Business, denouncing "a financial policy to oppose an industrial project".

- "Foul play" -

For him, "when you defend your position rather than your company in the face of a project of national interest, I believe that you are betraying both your company and France".

"This dirty trick is not likely to discourage me, I am carrying a project that seems important to Veolia, for Suez and for our country," Mr. Frérot said.

The boss of the world's number one water and waste treatment company wants to build a "super champion" in the sector thanks to a takeover bid on his lifelong rival.

Suez struggles, highlighting risks to competition and jobs and touting its potential for wealth creation as an independent group.

“This dismantling is as if someone introduced himself as your friend, suddenly entered your home. The door was opened by one of the owners and he moved to sell one by one the precious furniture that your grandmother bequeathed to you ", denounced the president of the group Philippe Varin in front of the deputies Wednesday.

The management of Suez is supported by the inter-union, very upset against the project.

So Veolia offered itself a platform to speak directly to the employees of its competitor, Thursday in national newspapers, before the regional press on Friday.

"My first commitment is to preserve all of your jobs", the CEO wrote to them, also promising to "sell as few assets as possible" and "a balanced framework between the leaders from Suez and Veolia".

Thursday, the Ciam fund ("between 0.1% and 1%" of the shareholding of Suez, according to its terms) for its part wrote to Mr. Varin to denounce with the creation of the foundation "an inadmissible violation of rights of shareholders "to decide on the fate of the Water assets.

In this tumult, the government, which through the voice of Jean Castex had first had positive comments on Veolia's project, has been silent for several days.

At the center of the game, Engie, whose main shareholder is the State, holds its board of directors on Friday evening.

The energy giant last week asked Veolia to improve its offer.

"All options are possible," Mr. Frérot said Thursday.

The CEO of Engie will be heard Tuesday morning by the deputies, who created a working group on this "issue of national interest", told AFP Eric Woerth, LR chairman of the Assembly's Finance committee national.

He took the opportunity to express his "regrets" that Suez did not mention Wednesday during his hearing his plans for a legal response announced the same evening, "a question of respect for parliamentarians".

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