Alliance Acquires 80% of Societe Generale

BRUSSELS — A French investment group and a Belgian insurer said Monday that they have gained control of about 80% of Societe Generale de Belgique SA, the subject of a protracted takeover battle.

Under an accord reached two weeks ago with Italian financier Carlo De Benedetti, who initiated the battle, Cie. Financiere de Suez and Groupe AG, the insurance concern, are now at the helm of Belgium’s largest holding company.

Adhering to terms of the agreement, De Benedetti has reduced his Societe Generale holdings and abandoned his takeover bid that was the cornerstone of his plan to create a pan-European holding company.

De Benedetti’s group, however, will continue to hold 16% of Societe Generale’s outstanding shares. In return for terminating his offer, De Benedetti was to receive an undisclosed cash payment and was to be made one of three Societe Generale vice presidents.

Suez and Groupe AG said in a statement that Erasmus Capital, a unit created in April by the French-Belgian alliance, will serve as a holding company that will control most of the Societe Generale shares.

The statement also said some Societe Generale shares could be reintroduced “in the near future” for trading on the local stock exchange.

Only a fraction of Societe Generale shares remained in public hands as a result of the five-month struggle between De Benedetti and his rivals.

De Benedetti amassed a stake of about 45% before the recent agreement, while the alliance, led by Suez and Groupe AG, held a slight majority.

The statement also said the “centers of decision” for Societe Generale will be maintained in Belgium, an apparent attempt to ease fears that the company might fall into foreign hands.