The board of French energy company Engie has rejected Veolia's bid for all or part of its stake in Suez, saying September 17 that it was not acceptable as it stood.

Late in July Engie announced a doubling of its disposals target, from €4 ($4.7)bn to €8bn, mentioning minority stakes and parts of its customer solutions division could go, to fund biogas, hydrogen and decentralised power. Veolia values the 29.9% stake at €2.9bn.

Chairman of the board Jean-Pierre Clamadieu and interim CEO Claire Waysand have accordingly been tasked with seeking an improvement in the terms as well as additional assurances that Veolia would respect the shareholders of the water supply and treatment utility, the company said.

However Engie has so far had no rival bid and so the two officers will continue discussions and to study any alternative offer that "must be sent to Engie in the next few days."

Clamadieu said that the "potential sale of all or part of the stake in Suez is part of the acceleration of our development in infrastructure and renewable energy. The board will be very attentive to the fair valuation of this participation, as well as to the solidity of the industrial project and the guarantees provided to all stakeholders."