France opposes shareholder bid to replace Eramet CEO – Reuters

The French government opposed a proposal by Eramet SA's top shareholder to replace Chairwoman and CEO Christel Bories, Reuters reported March 4, citing a source familiar with the matter.

The Duval family is the Paris-based miner's leading investor with a 37.2% stake, which is held by Sorame SA and Ceir SA. Bpifrance Participations SA, an affiliate of state-owned Agence des Participations de l'Etat, or APE, owns 25.6%.

The Duvals wrote the APE about its call for a leadership change as they are not satisfied with Eramet's plans to sell the SLN ferronickel operation in New Caledonia and alloys unit Aubert & Duval SA, which has been impacted by the struggling aviation industry. The investors are tied by a shareholder pact, the report said.

In addition, the Duvals also flagged Eramet's rising debt. In full-year 2020, Eramet's attributable net loss ballooned to €675 million from a year-ago loss of €184 million.

Bories was appointed in 2017 and her term will expire at Eramet's May 28 annual meeting. The board will meet March 11 to prepare for the meeting, the report said.

French financial daily L’Agefi first reported the Duvals' move against Bories, Reuters said. A representative of Sorame and Ceir declined Reuters' request for comment.