Lagardere share price jumps 20% after Vivendi increases stake By Reuters
PARIS (Reuters.) – French shares in Lagardere jumped 20% Thursday following Vivendi’s (OTC:), announcement that it would purchase another share of the company. This opens the door to a complete takeover.
Canal+ owner Vivendi said that it has agreed to purchase Amber Capital’s 17.9% share for 24.10 Euros per share. This would amount roughly to 610 Million euros (718.95 millions).
Vivendi indicated that it plans to launch a full offer at the same cost once it has crossed the 30% threshold, which is required for takeover offers from French companies.
“We believe Vivendi is primarily interested in Lagardere’s International Publishing business which would bring scale, synergies & savings to Editis”, analysts at JP Morgan said in a note.
The analysts also stated that Vivendi will likely try to sell the travel retailer business in order to finance the acquisition.
The French industrial giant, once a national champion, would be ending its ownership of Lagardere if it is successful. This was when Airbus, the planemaker, had large stakes.
Arnaud, the Chief Executive and Heir of Lagardere, has been selling off a small portion of the conglomerate. When he tried to stop an Amber Capital activist group, he sought out investors such as Bernard Arnault (luxury goods tycoon) and Vivendi.
($1 = 0.8485 euros)
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