By Laurence Frost and Gilles Guillaume
PARIS (Reuters) - Renault SA (PA:RENA) urged the French state, its biggest shareholder, to back down from plans to increase its voting weight in the carmaker - warning that the balance of power within its alliance with Nissan Motor Co Ltd (T:7201) was at risk.
The move by Chief Executive Carlos Ghosn, endorsed by an emergency board meeting on Thursday, may deepen a standoff with President Francois Hollande's government over state influence in the company.
The government announced moves on April 8 to increase its Renault holding to 19.7 percent from 15 percent temporarily and block Ghosn's proposal to opt out of measures designed to double the voting clout of most government shareholdings.
In a board statement, the carmaker said the Renault-Nissan alliance's "survival and success" required the restoration of the previous balance between France and Nissan - which holds a non-voting 15 percent stake in Renault.
During the meeting, according to a company source, the board also demanded that the government take steps by next year to cut its voting rights back to the previously held share.
Nissan officials also warned the French government board members that the Japanese carmaker would seek ways to counter any sustained increase in France's vote, the source said.
Measures to rebalance the alliance in Nissan's favour have been considered in the past - including a Nissan share issue or a cut to Renault's 43.4 percent stake. Either move could restore Nissan's voting rights in Renault.
The so-called Florange law introduced under President Hollande doubles the voting rights of shares held for more than two years in companies that have not explicitly opted out by a two-thirds majority vote.
By blocking Renault's proposed opt-out, to be decided at the April 30 shareholder meeting, the government had vowed to increase its voting weight even after paring its holding back to 15 percent subsequently.
The finance ministry declined to comment on the Renault board meeting - but government officials appeared to leave room for a partial retreat.
"Just like the Renault board, the government wants to preserve the Renault-Nissan alliance," a ministry source said.