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| - France's most bitter takeover fight in years entered a new phase Wednesday after the water, waste and energy giant Veolia offered more money for its rival Suez in a contest that is likely to draw in the French state. Veolia said it would now pay 18 euros per share, or 3.4 billion euros ($4 billion), up from 15.5 euros a share, for the 30 percent stake in Suez held by the French energy group Engie. The deal would be the catalyst for a full takeover of Suez, which provides municipal water services in many countries around the world. French officials are eyeing the deal warily -- the state owns nearly 24 percent of Engie -- despite pledges by Veolia to maintain jobs in strategic sectors where the French groups are global heavyweights. "I want us to take all the time necessary" to study the deal, Finance Minister Bruno Le Maire said Tuesday, warning that "the state will not submit to any pressure." "Taking into consideration both the French state and Engie's concerns, Veolia has decided to improve all the characteristics of its offer," the company said Wednesday. It vowed that a full bid for Suez would be launched only if its management agreed to the deal, and proposed a six-month period of talks to hammer out a friendly accord. But Suez has already taken a series of "poison pill" moves to try to scupper any takeover, including by placing its key French water services business in an independent Dutch holding. That could put it out of reach to Veolia, which has said it wants to sell the French operations to meet antitrust concerns. "I want to prove that my offer has never been hostile," Veolia chief Antoine Frerot told journalists during a conference call Wednesday. He said the new offer expires at midnight, and Suez's board is set to discuss the higher bid later Wednesday. "I have no doubt that this delay of six months will give me ample time to convince Suez's board of this project's relevance," Frerot said. jmi/js/bmm
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