Sparkling day in Paris where the latest news on two of the most important deals of the year take center stage: Carrefour and Suez.
CARREFOUR STAYS FRENCH
On the first front, what attracted investors' attention was Alimentation Couche-Tard's retreat after the "friendly" takeover offer of 20 billion euros presented to Carrefour last Thursday. According to the agency Bloomberg, the Canadian giant would be ready to turn around due to the words pronounced by Economy Minister Bruno Le Maire who, speaking on French TV, said that his was a "courteous but clear and definitive no".
Sources from the Ministry of Economy explained a France Presse that Le Maire would have explained his position directly to the founder of Couche-Tard, Alain Bouchard, and that he would have subsequently also spoken on the phone with the Canadian Minister of the Economy, Pierre Fitzgibbon.
The French No comes despite the reassurances of the Canadian group which in the previous days had promised investments of thousands of euros, no job cuts for two years and the listing of the stock in both France and Canada. The purpose of the offer was to create a large-scale distribution giant, with 26 points of sale around the world. We recall that the offer valued Carrefour at 20 euros per share, 4,4 euros more than the closing price of the share on Friday 15 January.
THE COUNTER-BID ON SUEZ
The Suez Group, which has been in Veolia's sights for months, has announced that it has received an alternative proposal from Ardian and the American investigating judge which could lead to an offer on its entire capital and set itself against the takeover bid planned by Veolia, already owns 29,9% stake in Suez. Ardian's takeover bid also envisages a "friendly solution" with Veolia, which however the latter has already rejected, branding the offer as "hostile".
The board of directors of Suez – reads a note from the group – “has received a letter of intent from Ardian and Global Infrastructure Partners, which aims to allow an amicable and rapid solution to the situation created by Veolia's intention to offer”.
The CEO of Suez, Bertrand Camus, has launched an appeal to Veolia offering "an exit with heads held high". However, the group directed by Antoine Frerot replied that its participation "is not for sale" and indeed is "the first stage of the inevitable construction and under French control of the world champion of ecological transformation". However, Frerot says he is open "to discussions with the Suez board of directors".
The letter of intent paves the way for various possible scenarios, including that of a takeover bid on Suez shares at 18 euros per share. Ardian and investigating judge are ready to invest on condition that an agreement is reached between Suez and Veolia.
After Suez's announcement of the offer received from Ardian and Gip, on the Paris Stock Exchange, Suez shares gained more than 3% to 17,47 euros, while rival Veolia lost 2,1% to 22,64 EUR.
