Vivendi Weighs Raising Offer Price for Rival Lagardere

(Bloomberg) -- Vivendi is considering raising the price of its cash offer for rival media company Lagardere SA, in its bid to create a media giant.

Vivendi, which is currently planning a cash tender offer for the remaining Lagardere shares is doesn’t already own, is now considering the possibility of holding a price of 24.10 euros ($27.37) until Dec. 15, 2023, and to offer an increased price of 25.50 euros to the shareholders choosing to sell their shares immediately.

The total offer for the remaining 55% of of Lagardere that Vivendi does not already own could reach about 1.68 billion euros, according to data compiled by Bloomberg.

Vivendi’s decision will be taken by its management board and announced on February 21, 2022. “This is also the date at which the filing of the tender offer is envisaged,” the company said in a statement Friday.

Shares in Lagardere increased as much as 5.5% to 25.48 euros, while Vivendi fell 0.9%. 

“Vivendi’s deliberations on raising the price of its public-tender offer for Lagardere to 25.5 euros reflect an improving profit outlook for the France-based publisher and travel retailer,” said Matthew Bloxham, analyst for Bloomberg Intelligence. “The additional cash outlay, less than 110 million euros, looks like a modest premium to gain control of a business that can strengthen Vivendi’s media portfolio and boost midterm cash-flow expansion.” 

In September, Vivendi agreed to buy Amber Capital’s stake in Lagardere at 24.10 euros a share, about 610 million-euros ($720 million), triggering a requirement to bid for the rest of the business under French law.

The deal is set to give birth to a European media giant, adding publishing giant Hachette, radios, press publications and travel retail stores to Vivendi’s media activities including Canal+, Havas, and Editis.

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