French take-over tussle

Press, 5 September 1989, Page 43

French take-over tussle

NZPA-Reuter Paris Shares in Compagnie Industrielle, target of France’s largest-ever takeover attempt, could rise swiftly this week, share analysts said. The merchant bank Compagnie Financiere de Suez has offered 13,000 francs (5NZ3333) a share for the insurance holding firm, valuing it at 19.5 billion francs (SNZS billion). But at an unusual news conference, Industrielle’s chairman, MrJean-Marc Vernes, repeated his assertion that Suez on August 7 offered him 16,000 francs (SNZ4IO2) per share for his personally controlled 25.3 per cent stake in Industrielle, “without any conditions at all.” He could not therefore advise shareholders to accept Suez’s offer. “Under current circumstances, at

the price of 13,000 one should not accept the offer,” he said. Analysts said Industrielle shares, effectively suspended from trading since August 23, would probably be pushed well above the last unofficial quote of 14,060 francs (SNZ36OS) when requoted today. Mr Vernes said his aim was to retain control and to see that the Suez offer, which closes on September 18, fails. The real target of the bid is France’s largest private insurance firm, Groupe Victoire, in which Industrielle holds a controlling stake of more than 40%. Suez considers Victoire a vital third leg of its business in banking and industrial holdings. Suez does not deny the 16,000franc offer but its chairman, Mr .Renaud de La Geniere, said in a

newspaper interview on Saturday: “This 16,000 was accompanied by payment terms which make it perfectly compatible with the 13,000 proposed to the public. The affair is closed. “There is no counter-bid and no one offered more than Suez. Under those conditions, what would justify a new offer?” But share analysts said that despite the denials some dealers still expected Suez, already the largest minority shareholder in Industrielle after, Mr Vernes, to raise its offer. Dealers marked down Victoire shares last week, seeing the chances of a Suez guarantee of 2000 francs (SNZSI2) per share dwindling. Victoire shares dived 97 francs ($NZ24.87) to close on Friday at 1823 francs ($NZ467.43).