Defence of Suez

Defending Suez from Enel ought to be easy. True, the French utility may be trading significantly above the value of Gaz de France’s all-share merger. But there are three basic things Suez could do to put itself beyond the reach of its Italian predator: slash GdF’s costs; break its own business up by selling off its water and waste arm; and gear the combined group up. Put together, these measures would be extremely shareholder-friendly. They would put a rocket under both Suez’s and GdF’s share p...