Lagardère: with the uncertainties, Oddo says 'reduce'
(CercleFinance.com) - After announcing in August that it owned 23.
5% of Lagardère's capital, Vivendi yesterday said that it now holds 26.7% of the group's capital.
Oddo believes that these share acquisitions could continue over the next few days.
According to the broker, Vivendi could seek to take a stake that is just below the blocking minority (29.99%) with the aim of maximising voting rights. Together with some of the group's floating shareholders, Vivendi and Amber Capital (15% of the voting rights) could then have a simple majority for the designation vote of the supervisory board.
There are still many uncertainties, however - starting with the decision of the Commercial Court, expected on 14 October, on whether or not to convene a General Meeting. The position of Qatar (QIA) also remains unknown, as does Arnault group's strategy over recent days.
Against this backdrop, Oddo recommends investors reduce their shareholding, with a target price of 15 euros (its share price is currently down 2% at just under 24 euros).
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
5% of Lagardère's capital, Vivendi yesterday said that it now holds 26.7% of the group's capital.
Oddo believes that these share acquisitions could continue over the next few days.
According to the broker, Vivendi could seek to take a stake that is just below the blocking minority (29.99%) with the aim of maximising voting rights. Together with some of the group's floating shareholders, Vivendi and Amber Capital (15% of the voting rights) could then have a simple majority for the designation vote of the supervisory board.
There are still many uncertainties, however - starting with the decision of the Commercial Court, expected on 14 October, on whether or not to convene a General Meeting. The position of Qatar (QIA) also remains unknown, as does Arnault group's strategy over recent days.
Against this backdrop, Oddo recommends investors reduce their shareholding, with a target price of 15 euros (its share price is currently down 2% at just under 24 euros).
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.