Veolia Notifies Suez of Intention to File for Remaining Stake -- Update

--Veolia has sent Suez a public offer proposal for a further 70.1% stake in the company

--Veolia, which already maintains a 29.9% stake in Suez, said it will launch a public tender offer at EUR18 a share

--Suez has said it has received the letter of intent, but that a binding offer can't currently be submitted with it being subject to legal proceedings

By Joshua Kirby and Mauro Orru

Veolia Environnement SA said Thursday it has notified peer Suez SA of its intention to file for a further stake in the company.

The French resource-management company said it sent Suez a public-offer proposal regarding the 70.1% stake.

"This formal proposal describes all the elements of the industrial project, the social project and the financial conditions that Veolia will offer when the offer is actually submitted," Veolia said.

Veolia previously acquired a 29.9% stake in Suez from energy company Engie SA, although the process has become mired in legal disputes, with Suez opposed to what it considers a hostile takeover by Veolia.

In Thursday's letter to Suez, Veolia said it will launch a voluntary public tender offer at EUR18 a share, the price at which it agreed to buy the initial stake from Engie. The company added that it intends to complete the merger in nine to 15 months, but that it cannot yet make a formal offer since the Suez's board is "standing in its way."

Suez confirmed receipt of the letter in a statement late Thursday, saying its board of directors would examine the document.

However, it added that Veolia can't submit a binding offer at the moment as the envisaged operation is subject to legal proceedings.

Write to Joshua Kirby at [e-mail]; @joshualeokirby and Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

January 07, 2021 13:03 ET (18:03 GMT)

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