PARIS Dec 5 French utility GDF Suez on
Thursday may move to dissolve a pact binding water and waste
company Suez Environnement's main shareholders in a
bid to cut GDF's own debt burden, La Tribune.fr said on
GDF Suez may announce that it will not renew the alliance
that controls 48.4 percent of Suez Environnement's capital on
Thursday morning, ahead of GDF's investor day, the website said.
Such a move would result in GDF Suez losing effective control of
Under the pact that expires on July 22, 2013, GDF Suez owns
35.7 percent of Suez Environnement, Belgian investor Albert
Frere has 7.2 percent, state-owned bank Caisse des Depots (CDC)
2 percent, nuclear operator Areva 1.4 percent, CNP
Assurances 1.3 percent and holding company Sofina 0.8
"The shareholders do not wish to renew it (the pact)" La
Tribune.fr said, citing a source close to the matter.
GDF Suez declined to comment. A group spokesman said the
company was holding a board meeting ahead of its investor day on
Suez Environnement also declined to comment.
Areva and Belgian investor Albert Frere could not
immediately be reached for comment while CDC and CNP Assurances
declined immediate comment.
As controlling shareholder under the pact, GDF Suez
consolidates 100 percent of the debt of Suez Environnement.
While GDF Suez may still own 35.7 percent of Suez
Environment once the pact ends it would lose its controling
shareholder status and this would allow it to consolidate just
35.7 percent of the debt.
GDF Suez is expected to outline more cost cuts to cope with
Europe's downturn, when the French utility updates its outlook
on Thursday for what it has said will be a difficult 2013,
analysts have said.
(Reporting by Dominique Vidalon; Editing by Christian Plumb)