12 euros and no more. The Paris Commercial Court on Thursday rejected the urgent appeal brought by small shareholders of EDF to delay the complete renationalization operation of the electricity group, ruling out the existence of a “manifestly unlawful disturbance” and a ” imminent harm”.
At the origin of this legal front, shareholders contested the “favorable” opinion taken on October 27 by the EDF board of directors regarding the renationalisation of the group at 12 euros per share, a key step for its complete takeover by the state. They estimate the undervalued price and claim a minimum of 15 euros.
Considering themselves aggrieved, these shareholders had summoned EDF to court on Monday, in order to denounce the conditions under which the board of directors validated the said takeover bid.
The decision of the AMF suspended?
These shareholders, mostly employees and former employees, and brought together under the banner of the “EDF shares” and “EDF ORS” employee mutual funds (FCPE), joined by the shareholders’ association Énergie en actions , together represent approximately 1.5% of the capital. They consider in particular “that the Board of Directors was not validly convened, insofar as the statutory convening period of seven days (…) was not respected”.
Small shareholders also asked the Financial Markets Authority (AMF), which was likely to give the green light to this renationalization on Tuesday, to “suspend” its decision, given this pending appeal.
EDF CEO accused of conflict of interest
At the same time, the small shareholders denounced this week a “potential conflict of interest situation” of the current CEO Jean-Bernard Lévy, on departure. In question: the combination of his position as censor on the board of directors of Societe Generale, “one of the two establishments presenting the offer designated by the State”, with his status as a manager appointed by the executive.
“We were deemed admissible, which is good news, but on the other hand, the judge did not decide, insofar as there was a serious dispute from EDF, which forces us to a new procedure on the background”, declared Martine Faure, president of the structures at the origin of the action.
This subpoena will be based “both on the lack of information, but also now the fact that the president should not have taken part in the vote” on October 27, she explained. Small shareholders want to file this summons on the merits before the new potential meeting date of the AMF, November 22, according to Martine Faure.