Investment fund Amber Capital sent a letter on Tuesday to the multinational electric utility Engie, according to Reuters, in which it said that it agreed on the necessity to appropriately study the proposal received from Veolia regarding part of the equity stake owned in Suez.
Last August 30, Veolia offered to purchase Engie’s 29.9% stake in Suez for 2.9 billion euros ($3.38 billion). Engie rejected the offer requesting an improvement of the terms proposed by Veolia and said it was open to alternative offers.
Antoine Frérot, CEO of Veolia, said on Friday the company would improve its bid for Engie’s stake in its rival Suez by 30 September.
Amber Capital also showed concerns by the contentious methods used by Suez’s management. Recently the French utility said it would protect the future of Suez Eau France by integrating it into a Dutch foundation.
The activist fund said that it did not believe Suez was serving the best interests of its shareholders and that Veolia’s offer would open the path to creating a European champion for the environment.