France's Groupe Victoire said it reached an agreement in principle to take control of West Germany's second-largest insurer, Colonia Versicherung AG, in a move that marks a further consolidation in the European insurance industry.
Suez said its move is designed to resolve a long-simmering shareholders' feud at Victoire and give Suez full control of the French insurance group, in which it already holds a minority stake.
Suez was poised to approve UAP's offer of all its Victoire shares plus FFr1bn in return for a controlling 50 per cent stake in a new holding company which would own Victoire's majority stake in Colonia. But Suez held out.
Suez was poised to approve UAP's offer of all its Victoire shares plus FFr1bn in return for a controlling 50 per cent stake in a new holding company which would own Victoire's majority stake in Colonia. But Suez held out.
Industrielle and Groupe Victoire without making a counterbid throws France's biggest-ever takeover battle into deeper confusion.
Trading in shares of Industrielle and Victoire stock, suspended last month, resumed Monday but was suspended again Tuesday when word of the agreement was made public.
Last year, it came close to an alliance with Britain's Royal Insurance PLC, but the proposed transaction fell through because of fears that Victoire would hold too dominant a role.
"The dice are cast and Victoire will go to the one willing to pay most."
Industrielle share plus 2,276 francs a share for Victoire's common stock and 1,138 francs a share for its nonvoting stock.
Suez said if its takeover bid is successful, it will then make a tender offer for the Victoire insurance company's parent, Compagnie Financiere du Groupe Victoire.
Suez said if its takeover bid is successful, it will then make a tender offer for the Victoire insurance company's parent, Compagnie Financiere du Groupe Victoire.
It launched its double-barreled bid earlier this month after a dispute broke out with Mr. Vernes over the funding of Victoire's recent acquisition of West German insurer Colonia Versicherung AG.