Put the small dishes in the big ones and open the purse strings to attract the barge. This is the strategy adopted on Monday February 21 by Vivendi, which finally launched its takeover bid (OPA) for Lagardère, six months after announcing it. The media group, owner of TV channels (Canal+, C8, CNews) and publisher Editis, is deploying an ambitious and complex strategy to convince Lagardère’s shareholders (Hachette, Europe 1, Sunday newspaper, Paris Match or Relay shops) to add their titles to its offer.
First of all, Vivendi confirmed to raise the price – to 25.50 euros –, i.e. 1.40 euros more than announced in September 2021. On this date, the group, whose main shareholder is Vincent Bolloré, had offered some 610 million euros to seize the 17.5% held by Amber Capital. Pressed to withdraw, the activist fund forced him to buy out his stake. Vivendi was then found with 45% of the capital of Lagardère, and then had to announce a takeover bid on the rest of the group.
If, six months later, it decided to offer an additional bonus to holders of securities, it is because, since then, driven by the economic recovery, Lagardère has improved its results: in 2021, its annual loss has been reduced to 101 million euros, much less than the 688 million deficit recorded in 2020.
It remains to be seen how the shareholders of Lagardère will react. Arnaud Lagardère (11% of the capital), affirmed before the Senate Commission of Inquiry into Media Concentration, on February 17, that he wanted to stay, and that he was even considering increasing his stake to 15%. A symbolic gesture that will not change the status of Jean-Luc’s heir within the new group. If it succeeds in its takeover bid, Vivendi will have every opportunity to absorb Lagardère, and to dispense with the services of Arnaud Lagardère if it wishes.
Several proposals made to Lagardère shareholders
At this stage, neither Qatar (11.5% of Lagardère) nor Bernard Arnault (9.97%) have communicated their intentions. The luxury billionaire had, however, expressed his desire to break away from Arnaud Lagardère, by breaking a bilateral shareholders’ pact established in the spring of 2020. At the time, the heir had called him for help in the hope of resisting to the invading Vincent Bolloré. Two years later, the tide has turned between the two men.
Anxious to urge the shareholders of Lagardère, Vincent Bolloré, who officially retired on February 17, now makes several proposals to them. Those who wish to benefit from the 25.50 euros will have to bring their tickets between April 14 and May 20, 2022. Those who hesitate – and this is the originality of the procedure – will have the opportunity to raise their hands and s commit to selling, but they can wait for the best time between now and December 31, 2023 to do so, while being sure of benefiting from a guaranteed price of 24.10 euros. This system was devised to reassure security holders who believe that Vivendi’s offer is undervalued, and that Lagardère’s share price may rise further. Shareholders who do not come forward at all take the risk of seeing the price fall. By adopting this method, Vivendi hopes to quickly know the results of the races, and increase its chances of success.
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