Veolia unit Transdev to propose new SNCM board chief-sources

By Geert De Clercq and Jean-Francois Rosnoblet

PARIS (Reuters) - French transport firm Transdev, a joint venture between Veolia Environnement and state-owned bank CDC, will propose a new chairman of the board for its ferry unit SNCM, two sources familiar with the situation said on Friday.

At a board meeting of Societe Nationale Maritime Corse Mediterranee (SNCM) in Paris on Monday, Transdev will call for a shareholders' meeting to dismiss Gerard Couturier and replace him with Transdev Secretary-General Jerome Nanty, a source close to Transdev said.

Couturier is one of seven Transdev representatives on the 14-strong SNCM board, but he has voted against Transdev proposals in recent meetings, the source said.

"Transdev wants to be able to exercise its rights as a majority shareholder," the source said.

The shareholders' meeting should be held in coming weeks.

A second source familiar with the situation also said that Transdev wants to dismiss Couturier.

Couturier could not immediately be reached for comment.

Veolia has proposed that SNCM go under court protection to shield itself from a European Commission order to repay 440 million euros (364 million pounds) of state aid, which would bankrupt the company and put its 2,600 jobs at risk.

Transdev owns 66 percent of SNCM, the French state 25 percent and the ferry operator's staff 9 percent.

Veolia, CDC and Transdev have said they will put no more money into SNCM, which is being kept afloat with a 30 million euro loan the French state provided late last year.

At Transdev's 2013 earnings presentation this week, Chief Executive Jean-Marc Janaillac said Transdev was willing to sell SNCM for a symbolic sum and to abandon its claims against the ferry operator in order to facilitate a takeover.

Transdev is in talks with Norway's Siem Shipping about a sale of SNCM, but an agreement would be conditional on finding a solution whereby Siem is not held liable to repay the subsidy claim.

A solution for SNCM is a precondition for Veolia's plan to sell part of its Transdev stake to CDC, as CDC does not want to take over Transdev with SNCM. Lack of progress on SNCM has blocked a Veolia-CDC Transdev transaction for more than a year.

At the end of 2012, Veolia agreed with CDC to cut its Transdev stake to 40 percent while CDC would become the leading shareholder with 60 percent.

Veolia wants to get out of the transport sector and eventually reduce its Transdev stake to 20 percent as it focuses on its core water, waste and energy businesses. ($1 = 0.7201 Euros)

(Reporting by Geert De Clercq in Paris and Jean-Francois Rosnoblet in Marseille; editing by Mark John and Anthony Barker)