GBLB Groupe Bruxelles Lambert SA

By Geraldine Amiel

Belgian financial holding Groupe Bruxelles Lambert (GBLB.BT), belonging to businessman Albert Frere, Thursday said it is issuing 1 billion euros of bonds exchangeable into GDF Suez SA's (GSZ.FR) existing ordinary shares, in a move that is expected to nearly halve GBL's stake and voting rights in the French power group to 2.3%.

The exchange price of the bonds will be set at a premium of 20% to 25% to GDF Suez's share price, the group said. At 1300 GMT, shares in GDF Suez were trading up 0.9% at EUR9.37.

Groupe Bruxelles Lambert said the move was deemed to increase its financial flexibility, allowing it to further divest its portfolio while it remains confident in GDF Suez's prospects and value creation potential.

-Write to Geraldine Amiel at geraldine.amiel@dowjones.com

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