By Olivia Bugault

 

Suez SA's board of directors confirmed Monday that it still considers Veolia Environnement SA's approach to be "hostile," but agrees with Ardian's decision not to make an offer to Engie on the purchase of a stake in the water and waste management company.

Veolia announced in late August its intention to buy a 29.9% stake in Suez held by Engie SA, which would be a first step before taking full control of the company. Suez rejected the bid and the two rival utility companies have been in a fight for weeks since then.

"In order to preserve the interest of all its shareholders and stakeholders, the Board confirms that it will put all the means at its disposal to avoid a creeping takeover or de facto control," Suez said.

"In the current climate, the Board agrees with Ardian's decision that it is not appropriate to make any offer to Engie," Suez added.

French private-equity firm Ardian informed Engie of its interest in buying the stake in Suez last week but said today that it won't submit an offer for the moment.

"Ardian, faithful to its principles of non hostile negotiations, has decided not to submit an offer to allow time for ongoing discussions," Ardian said Monday.

 

Write to Olivia Bugault at olivia.bugault@wsj.com

 

(END) Dow Jones Newswires

October 05, 2020 09:35 ET (13:35 GMT)

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