I'm not optimistic about this share offering. They have basically offered presents to employees and unions to stop the opposition from getting out of hand - and it hasn't even worked.
This is in response to the commoditization of the product in a market that faces a very difficult environment. It gives the groups the opportunity to find synergies at a difficult time for the industry.
The trends on electricity are good and Suez is gaining from its production mix. With a significant part of their production nuclear, they are gaining hugely from the increase in the price of electricity. They're also signing on new clients. All of this has helped results.
They will be able to improve the price in 2006, but not as much as they want. It's bad news.
The company didn't better expectations.