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Suez Chairman Philippe Varin also told a hearing at the National
Assembly that Suez was talking with European Union anti-trust
services and had asked French stock market watchdog AMF to look
into Veolia's move.
The head of Veolia however told legislators during the same
hearing that time was pressing as he wanted to make his deal
before Suez, as part of an existing plan to revamp its business,
divests more of its units.
"It is urgent to stop these scorched earth tactics," he said,
ruling out extending the Sept.30 deadline for his bid.
Veolia last month offered to pay 2.9 billion euros for a 29.9%
stake in Suez owned by French conglomerate Engie <ENGIE.PA>,
with a view to subsequently taking full control by buying up
more shares.
Suez sees Veolia's bid plan as hostile and is working on finding
a consortium of investors to make a rival bid for the stake
French energy group Engie wishes to sell.
"I do not see why Engie...would accept a four week ultimatum",
Varin said.
"We simply need some more time to prepare alternative
offers...We need to find investors who will be prepared to buy
that (Engie's) stake but we cannot act in a hurry in two weeks,
this is not possible,"
Engie rejected Veolia's initial advance but has said it will
consider a higher offer.
Speaking in an interview on Tuesday, Veolia Chief Operating
Officer Estelle Brachlianoff, who is also deputy CEO, said:
"There is a legitimate debate on the price, clearly, and there
will be a discussion to be had."
Varin also said that the structure of Veolia's offer raised
legal issues as it was addressed to Engie <ENGIE.PA> as a
prelude to a full takeover bid.
"This proposal does not comply with the principle of equal
treatment for all shareholders as Engie will be treated a
certain way and other (Suez) shareholders will one day find out
how they will be treated," he said, adding that he believed a
AMF meeting on the matter would take place "very soon".
Separately, representatives of employees who are also
shareholders of Suez and of Engie on Wednesday asked Engie's
board to freeze decisions regarding Veolia's offer and start
consultations with all parties involved.
(Reporting by Bertrand Boucey, writing by Dominique Vidalon;
editing by Jason Neely and Louise Heavens and Kirsten Donovan)
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