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French gas group gains 2.6 percent on talk of Suez takeover bid
AFP
PARIS
Petroleumworld.com 05 31 07Shares in state-owned gas company Gaz de France soared on Wednesday on press reports that utility group Suez was now considering the option of a takeover deal rather than a merger.
In late morning trading Gaz de France stock added 2.62 percent to 37.15 euros, while Suez lost 0.43 percent to 41.76 euros.
The report rekindled speculation about possible scenarios for the energy groups' planned tie-up, dealers said.
Le Figaro daily said representatives from Suez had presented various alternative scenarios to the government for a marriage with Gaz de France, in particular a takeover deal, whereas a merger had been on the cards so far.
The plan to merge GDF with Suez was designed to create a French national champion able to compete in a consolidating European energy market and protect the companies from foreign predators.
But the controversial deal ran into legal trouble that squeezed its calendar against campaigning for French presidential elections and caused some key private investors to question whether it could happen after all.
The Suez-GDF plan was widely seen as a pre-emptive defence against a possible hostile bid by Italian energy group Enel. Many analysts believe predators are following efforts to rescue the merger closely with a view to biding for Suez if the deal with GDF falls through.
AFP 30 1416 GMT 05 07
Copyright© 2007 AFP. All Rights Reserved.
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