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* No sale of the 32% capital or takeover-source
* The council will formally decide on Tuesday afternoon
* Recurring rumors about participation since 2013 (Updated with details and context)
by Benjamin Mallet
PARIS, December 11 (Reuters) – Engie's management does not intend to sell the group's 32% stake in Suez or take control of the world's second-largest water and waste treatment company. Tuesday a source close to the board of directors of the energy company.
The council will formally decide on the subject Tuesday afternoon, it was also learned.
"The position of management is the status quo," said the source interviewed by Reuters, adding that this position was on the agenda of the board as it stands.
A spokesman for Engie declined to comment on this information, initially reported by the daily Les Echos.
"It's a default decision because Engie can not really afford to buy. Despite the deleveraging, there are a lot of questions about its room for maneuver, "commented the source close to the council, regretting that the decision" leaked "even before the body has officially pronounced.
At 11:08, the Suez share retreated 2.1% to 12.07 euros while Engie gained 1.3% to 12.15 euros.
These announcements come as Engie plans to present a new strategic plan towards the end of February and Suez is looking for a new direction to succeed Gérard Mestrallet and Jean-Louis Chaussade, respectively Chairman of the Board and Chief Executive Officer. by the age limits next year.
Rumors about Engie's 32% stake in Suez have been recurrent ever since the group led by Isabelle Kocher let a shareholder pact on the company's control expire in 2013.
The scenario of a resumption of control of Suez still counted its supporters, who advocated the creation of a large cluster gathering both the specialist water and waste and energy services Engie (ex Cofely), but several observers have expressed doubts over the last few months about the strategic interest of a rapprochement.
At the same time, the hypothesis of an exit of Engie de Suez and a takeover of the latter by his great rival Veolia – after an attempted merger aborted in 2012 – reappeared in analyst notes .
Engie, for its part, regularly indicated that it was satisfied with its stake in Suez and only subscribed for its participation in the capital increase of the company launched in spring 2017 as part of the acquisition. from GE Water.
At the closing price on Monday, Engie's 32% stake in Suez capital was valued at nearly 2.4 billion euros. (Benjamin Mallet, edited by Jean-Michel Belot)
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