|
Suez in $9B buying binge
|
 |
August 20, 1999: 6:24 a.m. ET
French utility company buys out water, energy units; mulls U.S. acquisition
|
LONDON (CNNfn) - France's Suez Lyonnaise des Eaux received a lukewarm reception from investors Friday after spending another $9 billion to power its transformation into one of the world's largest multi-utility companies.
Suez Thursday announced plans to buy the shares it doesn't already own in the Belgian energy producer Tractebel for 7.53 billion euros ($7.9 billion). It is also paying 840 million euros to buy out minority shareholders in the French waste management firm Sita, in which it currently owns 70.2 percent.
Suez is also expected to assume control of New Jersey-based United Water Resources (UWR), in which it already has a 30 percent stake.
Suez Lyonnaise des Eaux (PCY) shares shed 3.7 percent to trade at 158 euros in Paris Friday morning after being suspended Thursday ahead of the deal announcements. The stock is near its 1999 low of 153 euros and well off its year high of 196.5.
The French firm has rolled out a global expansion plan over the last two years that has transformed it from a holding company into a world leader in its core businesses of energy, water and waste management.
Investors were cautious about the hefty premiium being offered for the 49.5 percent of Tractebel which it doesn't already own. Tractebel holders are being offered one Suez share and 16 euros in cash, equating to around 180 euros a share.
Tractebel stock soared 14.2 percent to 172 euros Friday after being suspended in mid-session Wednesday. The offer represents a 24 percent premium on the pre-offer stock price. 
|
|
|
|
|
 |
|
