The Paris Commercial Court rejected this Thursday the urgent appeal filed by the small shareholders of EDF to delay the complete renationalization operation of the electricity group. In its order, the court dismissed the protesting shareholders, ruling out the existence of “manifestly unlawful disorder” and “imminent harm.” In a press release, “EDF welcomes the order” issued by the president of the Paris commercial court.
At the origin of this legal front, the shareholders challenged the “favorable” opinion issued on October 27 by the board of directors (CA) of EDF on the renationalization of the group at 12 euros per share, a key step for its total absorption by of the state company, which currently owns 84%. They estimate the price undervalued and claim a minimum of 15 euros.
The directive was not ‘a surprise’
These shareholders, believing themselves wronged, had summoned EDF to court on Monday to denounce the conditions under which the board of directors validated said takeover bid. These shareholders, mostly employees and former employees, and grouped under the banner of the employee mutual funds (FCPE) “EDF actions” and “EDF ORS”, united by the shareholders’ association Energie en actions, together represent approximately 1.5% of the capital.
They consider in particular “that the board of directors was not validly convened, as the legal term of seven days was not respected (…)”. Another complaint, the documents were not sent within a “reasonable time” to the administrators. Arguments swept by the court that underlines that this turnover “has not been a surprise” since this project had been known for “several months”. As for the “imminent damage” that would result from this favorable opinion, he argues “that the damage invoked is not certain, since it depends on the decision of the AMF college”, the financial policeman, who does not yet know.
A possible conflict of interest with the outgoing CEO?
The small shareholders also asked the Financial Markets Authority (AMF), which would probably give the green light to this renationalization on Tuesday, to “suspend” its decision, before this appeal. In fact, the president of the AMF, Marie-Anne Barbat-Layani, assured on Wednesday that the Authority “will take the necessary time to examine very thoroughly” the takeover bid.
At the same time, the small shareholders opened another front this week by raising on Tuesday a “situation of potential conflict of interest” of the current CEO Jean-Bernard Lévy, upon his departure. In question: the combination of his position as censor on the board of directors of Societe Generale, “one of the two establishments that present the offer appointed by the State”, with his status as manager appointed by the executive.
A new citation filed before November 22
The rejected shareholders are now studying a summons, this time in the background, which will be based “both on the lack of information” and on “the fact that the president should not have participated in the vote” on October 27. said Martine Faure, president of the structures behind the legal action. The judge seized in summary “did not rule, while there was a serious controversy of EDF, which forces us to a new substantive procedure,” she explained. The small shareholders want to present this call before November 22, the next potential meeting date of the AMF, according to Martine Faure.
On October 4, the French state officially launched the process of renationalizing EDF, a €9.7 billion operation requested by the government to relaunch a vast nuclear program.
Source: BFM TV
