Court puts brakes on imminent Suez-GDF merger

21st November 2006, Comments 0 comments

PARIS, Nov 21, 2006 (AFP) - A court in Paris on Tuesday ordered the postponement of a meeting planned for Wednesday of the board of directors at state-owned Gaz de France (GDF) called to discuss a planned merger with energy group Suez.

PARIS, Nov 21, 2006 (AFP) - A court in Paris on Tuesday ordered the postponement of a meeting planned for Wednesday of the board of directors at state-owned Gaz de France (GDF) called to discuss a planned merger with energy group Suez.

The GDF board later said it would appeal against the decision.

The ruling was in response to a petition filed by the GDF workers' committee, which last Thursday had asked the court the postpone the board meeting on grounds that the committee did not have enough information on the social impact of the merger.

The judge ordered the postponement of the meeting and prohibited the board from taking any decision on the merger as long as the workers' committee had not given its opinion on the tieup.

Failure to honor either stipulation would lead to a 100,000-euro-a-day fine, the court said.

The merger of the two groups, actively backed by the French government, was announced at the start of the year, with the companies hoping to complete the transaction by the end of 2006.

Copyright AFP

Subject: French news

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