Suez Management Working On Alternative to Veolia Bid, Varin Says

(Bloomberg) --

Suez SA management, led by Chief Executive Officer Bertrand Camus, is working on an alternative to Veolia Environnement SA's bid for the French water and waste-treatment company, supervisory board Chairman Philippe Varin said in an interview with Le Journal du Dimanche.

Varin said work on an “alternative solution” is in progress with the backing of the board, declining to provide further details.

Suez has rejected Veolia's takeover bid as “particularly hostile,” while largest shareholder Engie has dismissed the offer for its stake as too low. French Finance Minister Bruno Le Maire has said Suez must remain mostly owned by French interests should alternative bids arise.

“The state has been clear on the French dimension of the solution,” Varin told Le Journal du Dimanche. “Bertrand Camus and his teams are in charge.”

Camus has rebuffed Veolia's takeover approach, saying it undervalues Suez and risks running into antitrust obstacles. Varin said Veolia's plan threatens jobs at Suez, and will “massively” reduce competition in France.

Veolia last month offered 2.9 billion euros ($3.4 billion) for Engie's stake in Suez, proposing to buy the 29.9% holding for 15.50 euros a share in cash, with a plan to follow up with a bid for the remainder of Suez. The French government, which owns 24% of Engie, has said it will make the preservation of jobs at Suez and its French industrial footprint the top priority.

French private equity firm Ardian has entered discussions with both Suez and Veolia regarding the proposed sale of Engie's stake in Suez, Reuters reported on Thursday, citing a spokeswoman for the firm.

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