[ad_1]
Arnaud Lagardère has been reaching an agreement to leave a distinctive legal structure that has long given him strict control over his French media and trade group of the same name, in an effort to neutralize threats posed by two billionaires and hedge fund activists.
The so-called French businessman is in talks to cancel sponsor Those who knew the subject said that the governance system he created when his father founded Lagardère in 1992 was worth between 200 million and 250 million euros. The sponsor it vetoes most of the company’s problems even though it has only a 7 percent stake.
But Arnaud Lagardère has been put in a corner by Vincent Bolloré, the self-controlled Vivendi, a media company he controls, has used it to build a 29 percent stake in Lagarde, as well as activist Amber Capital. long disturbed for change and has a 20 percent stake.
Try to defend them, himself has signed the agreement a year ago with billionaire Bernard Arnault, who became a major partner in LVMH with a 25 per cent stake in his personal holding and through which he controls. sponsor. This also provided Arnaud Lagardère with the necessary financial infusion to pay the staff debts.
The lifeline Arnault bought the heir for a time, but increased the struggle in the company, not only by grouping Vivendi. With Amber, but also to slightly increase its participation limit before launching the public offering.
In recent weeks, talks between the parties have accelerated to find a negotiated solution to the dispute, according to people who knew the issue. The catalyst was an annual shareholders ’meeting in June as Arnaud Lagardère risked another revolt against him with a potential vote to replace the committee, a person said.
The scheme of the agreement is that Arnaud Lagardère would receive payment in exchange for agreeing to the dissolution the company is limited by shares (SCA) and replace with a regular one public limited company. Existing shareholders would be diluted. People have said that with Lagardère’s increased stake, he will have three executive seats and a multi-year contract to become CEO.
Vivendi would have three boards of directors, and Amber, Arnault and longtime shareholder Qatar Investment Authority would each have seats.
People warned on Sunday that the talks were ongoing and could fall apart. The Lagardère board of directors was expected on Monday and will be notified soon.
If finalized, the deal would open a new phase in the company, with Arnaud Lagardère still having to fight with strong shareholders on the new board of directors.
But he could claim some victory because his team will not be disbanded for the time being and influential media outlets such as the Journal du Dimanche and Paris Match magazines remain under his control.
The Lagardère group was one of the French industrial sectors, having businesses in aerospace, defense and automobiles, but then reduced its sales through assets to be based on two main activities: the world’s third largest publishing house. Hatchet, and a retail travel business that operates relay newspapers and duty-free shops at train stations and airports.
Last year, the factions discussed a number of scenarios, including one that could break a group by taking the retail business of traveling from Vivendi to Hachette and LVMH. But Arnaud Lagardère said a long time ago that he did not want to break the business and those conversations did not go ahead.
[ad_2]
Source link
