Renault Directors Defend Support for Ghosn in Power Struggle with France

In a rare group statement, the 10 independent directors on the board increased their criticism of the government's April move to raise its Renault stake and block Ghosn's opt-out from a new law doubling voting rights and thereby increasing the state's influence at Renault.

Representatives of Renault's employees, Nissan and the French state did not sign the statement.

The government's maneuver has led to an escalating power struggle between Ghosn and Economy Minister Emmanuel Macron.

The independents, including Cherie Blair, wife of former UK Prime Minister Tony Blair, said the board had backed the failed opt-out "because it deemed that this was the means to protect the balance in the Renault-Nissan Alliance."

The 16-year-old alliance is held together by its crossed shareholdings. Renault owns a 43.4 percent controlling stake in Nissan, which in turn holds a non-voting 15 percent of its smaller French alliance partner.

Reuters reported on Wednesday that Macron is pressuring Ghosn to undertake a full merger with Nissan on the French government's terms,

Macron raised the state's Renault holding to 19.7 percent from 15 to block Ghosn's "one share, one vote" resolution. The government has pledged to cut the stake back to 15 percent but will still command 28 percent of voting rights when the so-called Florange law enters force at the end of March, doubling the weight of longer-term shareholders.

Nissan has voiced concern over the power grab and in September drew up confidential proposals to exit Renault control by acquiring a bigger stake in its French alliance partner, Reuters reported last week.

The directors' statement also offers an implicit defense against government charges that they had voted against Renault's interest in breach of their duties, by approving countermeasures to hand more power to Nissan within the alliance.

Government officials have contested a resolution approved in April that authorizes action to restore Nissan's voting rights in Renault, sources have told Reuters. Such a move would require Renault to cut its Nissan stake.

The independent directors, who also include Danone Chairman Franck Riboud and his Total counterpart Thierry Desmarest, said in their statement that the alliance with Nissan was "essential for the continuity of Renault."

Renault's 20-member board is meeting in emergency session on Friday to consider its next move in its unprecedented struggle with the French state.