Marc Dufour News

The board of France-Corsica ferry operator SNCM on Monday voted out its chief executive who had sided with trade unions, allowing shareholder Veolia to retake control and restructure the loss-making firm. Veolia wants to put Societe Nationale Corse Mediterranee under court protection to shield it from a European Commission order to repay 440 million euros ($605 million) of state aid and is looking for a buyer of a restructured SNCM. Transport firm Transdev - itself a 50-50 joint venture between Veolia and state-backed Caisse des Depots (CDC) - owns 66 percent of SNCM but Transdev has not been able to impose its will at SNCM because the ferry company's chief executive and board chairman have sided with its unions and ignored instructions of their employer.

Government representatives on the board of Corsica ferry operator SNCM will vote on Monday to decide whether Veolia can retake control of the troubled business. The vote is tricky for the government as siding with Veolia could lead to protests by SNCM unions in Marseille ahead of European elections in two weeks. Veolia wants to put loss-making SNCM (Societe Nationale Maritime Corse Mediterranee) under court protection to shield it from a European Commission order to repay 440 million euros ($605 million) of state aid. Veolia has also said it will not put any more money into the ferry company.