French Veolia increases bid for Engie’s stake in Suez to $ 4 billion

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Veolia operator in the TWA Hotel microgrid plantSource: Christophe Leaves-D’Inguimbert | Veolia North America

The French waste and water management company Veolia on Wednesday raised its offer of a 29.9% stake in Suez held by Engie to 3.4 billion euros (4 billion dollars), and put the pressure for a quick outcome to his proposal. Veolia has tried to persuade Engie to part with most of its stake in Suez as a prelude to launching a full takeover bid on the utility, although Suez has vehemently rejected this approach.

Veolia said it had raised its offer to 18 euros per share against 15.5 euros per share, valuing the stake at 3.4 billion euros against 2.9 billion euros previously.

He added that the offer was valid until the end of Wednesday, meeting the original deadline for his offer to Engie.

But Veolia added that it would only launch a subsequent takeover bid for the whole of Suez with the blessing of the company’s board of directors, and offered a six-month period to negotiate, if it acquires the 29.9% stake.

The French finance ministry called on Veolia to demonstrate that its approach to Suez is friendly. The state holds a 23.6% stake in Engie, which in turn owns 32% in Suez.

Suez shares rose 6.6% at the start of the session.

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