Geodis Board Recommends SNCF Offer

The French railway company SNCF's offer of €1.1 billion ($1.71 billion) “should be largely positive” for Geodis, said the Geodis board.

The proposed acquisition of logistics services company Geodis would create Europe's fourth largest transport and logistics company, says Guillaume Pepy, SNCF chairman.

After a review of the offer and various analyses and reports submitted to the Geodis board, board members voted unanimously to recommend shareholders accept the offer.

SNCF currently holds a 42% stake in Geodis, making a counter offer by another group unlikely.

Unions representing SNCF's workers were cautious in their response. The Financial Times reported that the Sud-Rail union had raised concerns that SNCF was attempting to change the status of the freight business by "submerging it in a company with the statutes of a private group."

For a cash outlay of about €600 million ($935 million), the deal would create a group with sales of €7.7bn ($12 billion).

Geodis reported 2007 revenues of €4.8 billion ($7.48 billion) and has a network spanning 120 countries.

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