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VERSAILLES

Ex-Renault CEO Ghosn ready to pay Versailles wedding bill: lawyer

Detained former Renault boss Carlos Ghosn "stands ready" to repay a 50,000-euro ($57,000) bill for his wedding party at the Palace of Versailles, which was waived under a sponsorship deal with the French carmaker, his lawyer said Friday.

Ex-Renault CEO Ghosn ready to pay Versailles wedding bill: lawyer
ex-Renault CEO Carlos Ghosn with his wife Carole at the Cannes Film Festival in 2017. Photo: Loic Venance/AFP
Renault disclosed this week that the French chateau had waived the usual rental fee for Ghosn as part of a sponsorship deal between Versailles and Renault, signed a few months before the lavish October 2016 wedding.
   
Ghosn's lawyer in France, Jean-Yves Le Borgne, told AFP that the ousted CEO was willing to pay the fee, saying he “was not aware he owed it because he had not been billed”.
   
“He thought it was free,” Le Borgne said. The waived bill could amount to the misuse of company resources, as well as tax evasion, if the benefit-in-kind was not declared to French authorities.
   
Ghosn's tenure as CEO has come under the microscope since his arrest last November in Japan on charges he under-reported millions of dollars in pay as head of Nissan, Renault's alliance partner.
   
His subsequent indictment on three charges of financial misconduct has led to renewed scrutiny of his management and lifestyle at both companies while he sits in a Tokyo jail awaiting trial.
   
Ghosn and his second wife Carole threw a Marie Antoinette-themed dinner and party at the former royal residence at Versailles, complete with entertainers in period costumes, on October 8, 2016.
   
In a statement, the Chateau de Versailles said Renault had signed a 2.3-million-euro sponsorship deal with the palace in June 2016.
   
Under the terms of the deal, Renault could benefit in return from Versailles access and other services worth a maximum 25 percent of the deal, in this case around 575,000 euros, it said.
 
Another Versailles party
 
The prosecutor's office in Nanterre outside Paris said that they met with Renault's lawyers to discuss the matter Friday.
   
“No decision has yet been taken regarding an eventual inquiry,” a spokesperson told AFP.
   
Also on Friday, French financial daily Les Echos and newsmagazine L'Express said Ghosn could be facing new scrutiny over another party at Versailles, a 600,000-euro gala dinner paid for by Renault in 2014.
   
Officially the event was to celebrate the 15th anniversary of Renault's alliance with Nissan, the ambitious project which Ghosn forged into the world's top-selling auto group.
   
But the date, March 9, actually coincided with Ghosn's 60th birthday and not the launch of the alliance, the reports said, adding that most of the guests consisted of Ghosn's friends and associates as opposed to Renault or Nissan executives.
   
“We need to stay calm, people's imaginations are running wild — the invitations clearly say it was to mark the alliance's 15th anniversary,” Le Borgne said. 
   
“I was born on June 6, and I deny any role in the glorious D-Day landing on the beaches of Normandy” in 1944, he added. “There are some coincidences that have nothing to do with cause-and-effect relationships.”
   
Ghosn was dismissed as chairman of Nissan and the other alliance partner Mitsubishi shortly after his arrest in November, but he relinquished his grip as CEO of Nissan only last month.
   
Also last month Ghosn resigned as chief executive and chairman of Renault. He has staunchly denied the financial misconduct charges against him.

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RENAULT

France ready to cut Renault stake to shore up Nissan partnership: minister

France is ready to consider cutting its stake in Renault in the interests of consolidating the automaker's alliance with Nissan, Finance Minister Bruno Le Maire said on Saturday.

France ready to cut Renault stake to shore up Nissan partnership: minister
A Renault employee works at the automaker's factory in Maubeuge, northern France. File photo: Ludovic MARIN / AFP
He was speaking in Japan after Italian-US carmaker Fiat Chrysler pulled the plug on its proposed merger with Renault, saying negotiations had become “unreasonable” due to political resistance in Paris.
 
In an interview with AFP on the sidelines of the G20 finance ministers meeting in Japan, Le Maire said Paris might consider reducing the state's 15-percent stake in Renault if it led to a “more solid” alliance between the Japanese and French firms.
 
“We can reduce the state's stake in Renault's capital. This is not a problem as long as, at the end of the process, we have a more solid auto sector and a more solid alliance between the two great car manufacturers Nissan and Renault,” he told AFP.
 
Last week, FCA stunned the auto world with a proposed “merger of equals” with Renault that would — together with Renault's Japanese partners Nissan and Mitsubishi Motors — create a car giant spanning the globe. The combined group would have been by far the world's biggest, with total sales of some 15 million vehicles, compared to both Volkswagen and Toyota, which sell around 10.6 million apiece.
 
But the deal collapsed suddenly on Thursday, with FCA laying the blame at the door of Paris. 
 
“It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully,” FCA said in a statement.
 
Le Maire said Renault should concentrate on forging closer ties with its Japanese partner Nissan before seeking other alliances.
 
Things need to be done “in the right order…. First the alliance (between Nissan and Renault) should be consolidated and then consolidation (more generally) and not one before the other.”
 
“Otherwise, everything risks collapsing like a house of cards,” he warned.
 
The minister said it would be up to the bosses of Renault and Nissan to decide how to push the alliance forward as ties between the two firms have been strained after the shock arrest of former boss Carlos Ghosn.
 
Renault is pushing for a full merger between the pair but there is deep scepticism of the plan at Nissan.
 
There were varied reactions from the French unions Saturday.
 
“The government is behaving like the agent of the big shareholders, favouring short-term profit to the detriment of the interests of the country,” said Fabien Gache, of the CGT union.
 
Cutting the state's share in Renault was abandoning its responsibility in the country's auto industry, he argued.
 
Franck Daout of the CFDT union said it backed a three-way alliance between Renault, Nissan and Japan's Mitsubishi — but not one between Nissan and Renault until the alliance had reached a “safe and sustainable maturity”.
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