Veolia May Add to Write-Downs, Struggle to Sell Assets, UBS Says

Veolia Environnement SA, the world’s biggest water company, may add to write-downs it booked in the first half as management struggles with plans to cut losses by selling assets as economic growth weakens, UBS AG said.

“While we believe the largest write-downs on individual assets happened in the first half, it is likely that there is more to come,” UBS analysts including Per Lekander wrote in a report. “Selling underperforming assets, often with goodwill attached to them, in a bear market may prove challenging.”