Renault directors defend pro-CEO stance in French scrap

By Laurence Frost and Gilles Guillaume PARIS (Reuters) - Renault's independent board directors on Thursday defended their support for Chief Executive Carlos Ghosn in his standoff with the French government over the future of the carmaker and its alliance with Nissan <7201.T>. In a rare group statement, the 10 independents stepped up their criticism of the government's April move to raise its Renault stake, block Ghosn's opt-out from a new law doubling voting rights and thereby increase the state's clout at Renault. The manoeuvre has led to an escalating power struggle between Ghosn and Economy Minister Emmanuel Macron. The independents, including Cherie Blair, wife of former British 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 parent. Macron raised the state's Renault holding from 15 to 19.7 percent 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 parent, Reuters reported last week. The directors' statement also offers an implicit defence 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 authorises 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 Thursday 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. (Writing by Andrew Callus; Editing by James Regan and Mark Potter)