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TotalFina gets boost on Elf
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August 18, 1999: 7:26 a.m. ET
Paris court backs hostile offer; oil company suggests it may raise bid
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LONDON (CNNfn) - TotalFina's hostile $46 billion bid for rival French oil firm Elf Aquitaine received a double boost Wednesday after a Paris court threw out an attempt by Elf to block the offer, and TotalFina indicated it may sweeten its existing stock bid.
The Paris appeals court rejected Elf's blocking tactic, but did not yet rule on TotalFina's own appeal against a counter-bid from Elf. Elf wants to see the companies merge and spin off their chemical units to focus on core oil businesses.
TotalFina chairman Thierry Desmarest also sought to broker a compromise in France's latest contested takeover battle. He told London's Financial Times that the company would consider boosting its 43.7 billion euro offer only if the two sides can quickly reach an amicable settlement.
Both sides appear keen to avoid the kind of state intervention which has extended the hotly-contested three-way takeover battle in the banking sector between BNP, Société Générale and Paribas to a six-month war of attrition.
Desmarest declined to state whether cash would be added to the offer but said the chemical interests could be placed in a stand-alone entity. The statement was a clear shift towards the Elf Aquitaine position.
TotalFina shares were off 0.77 percent at 129 euros in Paris mid-morning trading Wednesday, while Elf advanced 0.74 percent at 177.4 euros.
Analysts said the recent performance of both stocks since the offers were launched last month suggested that TotalFina would have to raise its bid while Elf's counteroffer was expected to fail.
TotalFina's offer is now expected to run until the end of September. 
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Elf Aquitaine
TotalFina
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