French-based utility Engie has informed Veolia Environmental it must increase its bid for a 29.9% stake in Suez if it wishes to continue pursuing a purchase of the French utility.
This comment represents progress after the bid was first rejected and labeled a "hostile takeover" by Suez's Chairman Philippe Varin. He also called Veolia's business plans unrealistic.
While the hostility may have subsided, Suez is still pursuing plans to demonstrate its standalone value. As part of this effort, the company has announced plans to return $1.17 billion to shareholders by the middle of next year. It also announced the sale of some of its waste recycling operations for $1.3 billion to The Schwarz Group.