Electricité et Eaux de Madagascar (EEM), the French investment conglomerate, may be forced to restructure its offer for Gascogne, the paper and packaging firm, after the French market regulator expressed concern over the financing of the acquisition.

EEM already owns 30% of Gascogne and launched an unsolicited offer for the remainder in July, which valued the company at €172m ($189m) or €82.8 per share. It plans to finance the acquisition via a mandatory convertible bond.