Suez pressed to take action as activist Amber Capital acquires stake
08 DEC 2018
Suez [EPA:SEV], the French utility group, now includes the activist fund Amber Capital among its shareholders, the Financial Times reported. Amber Capital founder Joseph Oughourlian said the hedge fund is keen for Suez to concentrate more on creating value for investors and boosting returns. He also urged the French company to exploit the robust infrastructure market by divesting assets and cutting its debt burden, the item reported.
Amber Capital has acquired a Suez stake of slightly more than 1% this year and the fund is now among Suez’s top 10 investors, according to Oughourlian.
Suez declined to comment, the item reported.
An unidentified French dealmaker claimed Suez is being weakened by its management’s indecision relating to governance issues. The company is seeking replacements for its chairman and chief executive, Gerard Mestrallet and Louis Chaussade, who are scheduled to retire in mid-2019.
A decision on the new appointments will largely rest with Engie [EPA:ENGI], which controls around a third of Suez’s shares, the report said. Engie’s plans for its Suez stake are unknown but the group is expected to outline a new strategy next February and is thought likely to take a position on whether Suez will be retained or divested before that time, the item reported.