Veolia Slides in Paris on Concern Cost-Cutting Isn’t Fast EnoughTara Patel
Veolia Environnement SA fell to the lowest level in seven weeks in Paris on concerns that Europe’s biggest water company isn’t cutting costs fast enough.
Veolia sank as much as 4.1 percent to 12.32 euros, the lowest intraday price since Sept. 9. Raymond James Euro Equities cut its 2013 earnings-per-share estimate by 4 percent, the 2014 forecast by 30 percent and 2015 by 4 percent.
“The restructuring plan in France is lagging,” Emmanuel Retif, a Raymond James analyst, wrote in a note today.
Veolia said yesterday it reached a deal with Electricite de France SA to acquire their Dalkia energy-services venture’s international operations for 550 million euros ($757 million) after being locked in a legal dispute with EDF for more than a year. EDF will take control of Dalkia’s French activities.
The deal was neutral for net financial debt at Veolia and would end litigation, the two companies said in a statement.
Veolia fell 2.6 percent to 12.52 euros by 2:44 p.m. in Paris.