Company News

Suez poison pill violates minority shareholder rights -CIAM

PARIS, Sept 24 (Reuters) - Suez minority shareholder CIAM said in a letter to Suez’ board chairman that Suez is violating shareholders’ rights by lodging its French water activities in a Dutch foundation as a defence against a takeover bid by sector peer Veolia.

“The Suez board, under the pretext of protecting the company and its staff, has adopted a poison pill that is designed to block all bids or changes of control,” activist investment firm CIAM said in the letter seen by Reuters.

“The board is foremost trying to ensure its own survival and is taking other shareholders hostage to their detriment,” said CIAM, which called on market regulator AMF to intervene.

CIAM said it owns between 0.1% and 1% of Suez, but declined to give a precise number.

Reporting by Maya Nikolaeva; writing by GV De Clercq; editing by Jason Neely