by Adam Sage
The French Government’s ambition to create a Gallic energy champion was close to collapse last night as Gaz de France and the Franco-Belgian utility Suez appeared to admit defeat in their race to merge before the French presidential election.
A source said both groups agreed that it would be “difficult” to ask shareholders to vote on the €80 billion (£54 billion) tie-up before next July. With the French presidential election due in April, the outcome of the merger is effectively in the hands of the electorate.
A source said both groups agreed that it would be “difficult” to ask shareholders to vote on the €80 billion (£54 billion) tie-up before next July. With the French presidential election due in April, the outcome of the merger is effectively in the hands of the electorate.
The socialist candidate, Ségolène Royal, opposes the deal because it would involve the privatisation of GdF. The centre-right frontrunner, Nicolas Sarkozy, is also reticent.
Two court rulings in the past month have derailed the plan to complete the merger this year. A Paris tribunal called for further consultation with staff and France’s Constitutional Council said the tie-up could not be finalised until July 1.
GdF and Suez have been seeking a loophole to enable them to engage the merger before next summer, but a source said last night that Suez shareholders would almost certainly refuse to approve the options under scrutiny.
Two court rulings in the past month have derailed the plan to complete the merger this year. A Paris tribunal called for further consultation with staff and France’s Constitutional Council said the tie-up could not be finalised until July 1.
GdF and Suez have been seeking a loophole to enable them to engage the merger before next summer, but a source said last night that Suez shareholders would almost certainly refuse to approve the options under scrutiny.
Source: The Times
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