PARIS, Sept 1 (Reuters) - French utility Engie is holding out for a higher bid price to sell its stake in Suez to rival utility Veolia, three sources close to the matter said, adding that the firm was envisaging other options too.
Late on Sunday, Veolia said it was offering to buy a 29.9% stake in Suez from Engie for 15.5 euros a share, or 2.9 billion euros ($3.45 billion), as a prelude to bidding for the whole firm.
Engie believes a higher price would be justified, three sources familiar with the company’s thinking said.
“It’s not high enough, Veolia has to go over its proposition,” said one of the sources, a company insider.
Asked whether 17 euros a share would the right price, as reported earlier by BFM TV, another of the sources said it would be “closer to what Engie would expect.”
Executives at Engie, which holds 32% in Suez overall, have also reached out to Suez to see if the firm would envisage buying back the stake, two of the sources said. One of the sources added that Engie also remained open to examining any offers from other buyers that might emerge.
Engie, Suez and Veolia declined to comment. (Reporting by Benjamin Mallet, Writing by Sarah White, Editing by Sudip Kar-Gupta)
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