Date: May 16, 2012
Source: Veolia Environmental Services North America Corp.
False reports in the media about the sale of Veolia's US waste business led its CEO Richard Burke to issue a statement denying that a bidder had been chosen to acquire his company. "The information shared by our Chairman Antoine Frérot during today's annual shareholder meeting was only confirming the communications we released previously regarding Veolia's solid waste asset divestment program in the United States. Specifically, as part of the process being run by our investment bankers, Veolia has received several non-binding offers for its Solid Waste business in the United States. The process is ongoing with plans to select a buyer by summer 2012," he said in a statement. A statement at the parent company's shareholder meeting by Chief Financial Officer Pierre Francois Riolacci reiterating the expected sale of the UK water and US waste businesses in July was taken by some to mean that the company had already chosen a buyer.
At that meeting, Frérot won the support of shareholders who evidently approve his plans to pare down the company to reduce debt and shore up profits. Shareholders voted in favor of appointing three new independent directors to replace individuals believed to be more sympathetic to former CEO Henri Proglio who has been attempting boardroom coup against Mr Frérot.
Veolia seeks to sell assets worth 5 billion euros ($6.37 billion) by 2013 and to cut its debt to below 12 billion euros from 14.7 billion euros last year.
See also: "Who Will Buy Veolia's US Waste Business?" (www.wasteinfo.com/news/wbj20111213B.htm), December 13, 2011.
PRESS RELEASE
May 16, 2012
Statement by CEO of Veolia Environmental Services North America Corp.
Richard Burke, President and CEO for Veolia Environmental Services North America Corp. (VESNA), today released the following statement regarding the misstatement reported by the news media regarding the sale of the US Solid Waste business.
"The information shared by our Chairman Antoine Frerot during today's annual shareholder meeting was only confirming the communications we released previously regarding Veolia's solid waste asset divestment program in the United States. Specifically, as part of the process being run by our investment bankers, Veolia has received several non-binding offers for its Solid Waste business in the United States. The process is ongoing with plans to select a buyer by Summer 2012."
For Veolia Environmental Services North America Corp.
Denisse Ike 312-552-2800.
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