Lagardere Share Price Jumps 20 Percent After Vivendi Increases Stake

By Reuters
September 16, 2021 Updated: September 16, 2021

PARIS—Shares in France’s Lagardere surged 20 percent on Thursday after media group Vivendi said it would buy another stake in the company, paving the way for a full takeover.

Canal+ owner Vivendi, which already owns 27 percent of Lagardere, said it had agreed to buy Amber Capital’s 17.9 percent holding for 24.10 euros per share, or about 610 million euros ($718.95 million).

Vivendi said it would later launch a full bid at the same price once it has passed the 30 percent threshold requiring companies in France to make a takeover offer.

“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.

They also said that Vivendi would likely seek to sell the travel retail business to fund the acquisition.

If successful, the acquisition of Lagardere will mark the end of what was once one of France’s national industrial champions, which under its late founder used to have large stakes in companies like plane maker Airbus.

Heir and Chief Executive Arnaud Lagardere has sold off parts of the conglomerate bit by bit. Last year he brought in investors like Vivendi and luxury goods tycoon Bernard Arnault when he was trying to fend off an activist campaign by Amber Capital.