As Economy Minister, Franz Fayot, like the government, had to set limits on Intelsat's bid to buy SES. Today, faced with the Appaloosa fund, he finds the government "worrying". (Photo: Romain Gamba/Maison Moderne/Archives)

As Economy Minister, Franz Fayot, like the government, had to set limits on Intelsat's bid to buy SES. Today, faced with the Appaloosa fund, he finds the government "worrying". (Photo: Romain Gamba/Maison Moderne/Archives)

The exchange between former Minister of the Economy and opposition figure Franz Fayot and Prime Minister Luc Frieden (CSV) lasted less than three minutes this Tuesday at the Chamber of Deputies. But the former found the latter ‘worrying’ in his defense of Luxembourg’s flagship company, SES, which is in the crosshairs of an activist fund with billions of dollars at its disposal.

"The Luxembourg government has no intention of amending SES's articles of association." To the Socialist MP and former Economy Minister, , who questioned him this Tuesday afternoon in the Chamber of Deputies, the Prime Minister, (CSV), replied in one sentence. Trapped between the impact that a statement from the company’s main shareholder could have and the eternal balancing act between ‘too much’ and ‘too little’ regarding the Luxembourgish gem targeted by the American fund Appaloosa on the eve of its 40th anniversary.

It is also unbearable that these funds behave like crickets that eat everything in their path, with no firmer opposition.
Franz Fayot

Franz Fayot, Member of Parliament and former Minister for the Economy

‘Worrying!’, the former minister retorted moments later. ‘For a long time, I felt that Prime Ministers like Pierre Werner or Jacques Santer defended SES tooth and nail. Today, with this very neoliberal coalition, I’m not sure that’s still the case.’

‘For 40 years, all governments—including the last one, during discussions around the merger with Intelsat—have always insisted that SES’s headquarters and strategic control remain in Luxembourg. That has always been a sine qua non condition for any transaction,’ Fayot said during his speech.

‘It is also unbearable that these funds behave like locusts, devouring everything in their path, without stronger opposition,’ the former Minister of the Economy added.

‘SES must certainly continue to invest in order to develop and to reduce its debt to avoid such situations,’ Fayot added. SES had regained a better financial position thanks to the U.S. government’s payment for the repurchase of frequencies now used for American 5G. But absorbing Intelsat puts it back in a more delicate situation. This also complicates things for the fund, which is engaged on both sides—SES and Intelsat—and has its investment ‘blocked’ unless it sells… at a loss, something it is not eager to do.

This article  in French.