UPDATE 1-France’s SNCF railways launches takeover of Geodis
April 6th, 2008 | by admin |(Adds background, quotes)
PARIS, April 6 (Reuters) - French state railways SNCF[SNCF.UL] said on Sunday it was launching a takeover oftransport and logistics company Geodis (GEOD.PA: Quote, Profile, Research), offering apremium of more than 30 percent on its last traded price.
SNCF, which already owns some 42 percent of the firm, saidit would pay 135 euros a share for the remaining stock, valuingthe company at 1.1 billion euros and effectively seeking tonationalise France’s leading freight company.
Geodis shares jumped 27 percent to 101.62 euros on the Parisstock market on Thursday following rumours of a buyout, but theyremain down 41 percent since their peak in May last year.
The stock was suspended on Friday.
SNCF has indicated it wanted to buy Geodis to create aleading global freight company.
“This is the first takeover in the history of the SNCF.Perhaps it won’t be the last,” said SNCF’s recently appointedchairman, Guillaume Pepy.
The board of Geodis was expected to make a decision on theoffer within three weeks.
Born as the road freight subsidiary of SNCF, Geodis wasprivatised in 1996 at a time when the heavily indebted railcompany was concentrating on its core public services.
