Financier Fails to Get Control of Belgian Firm

Belgian financier Andre Leysen failed Friday to push through a Franco-Belgian deal to control Societe Generale de Belgique SA, giving rival Italian investor Carlo De Benedetti’s bid a major boost.

Leysen could not get enough backing from a group of mostly Belgian investors to ratify an accord with the French holding concern Cie. Financiere de Suez to restructure Belgium’s biggest holding concern and keep it anchored in Belgium.

Leysen said he considered his mandate as spokesman for the group as over.

Because of the failure, the battle for control of Societe Generale, one of the pillars of the Belgian economy, remains open.

Suez, however, said “it is continuing discussions with all the Belgian shareholders” wanting to cooperate in gaining control of the company that has a stake in a third of the Belgian economy.

Seek Restructuring

It said Leysen’s decision to relinquish his leading role “absolutely does not call into question the goal sought by the Belgian and French partners” to restructure the 166-year-old company.

Societe Generale has interests in about 1,400 companies worldwide with assets totaling nearly $3 billion.

De Benedetti did not comment on Friday’s developments. He wants effective control of Societe Generale in order to use it as a platform for a pan-European financial holding.

He also has offered to continue negotiations with the Belgian shareholders but has excluded Suez from such negotiations.

Launch Public Offer

The Italian investor claims to be the biggest shareholder and says he can control, through allies, 38% of stock in the company. He is launching a public offer Monday for 15% more.

In the public offer, De Benedetti is willing to offer 4,000 francs ($114.30) per share, 150 francs ($4.30) less than Friday’s closing price on the Brussels stock exchange.

The price had plunged 14 % Friday from 4,850 francs ($138.60) and brokers blamed it on Leysen’s failure, which caused many market participants to conclude De Benedetti had won the battle for control.

The group of mostly Belgian investors formed around Leysen said it had 28% of stocks in the company while Suez claimed 15%. Together with allies Leysen said they had a majority of shares.