Lagardère, which is currently the subject of a takeover bid by Vincent Bolloré’s group, Vivendi, is studying “a project aimed at confirming the autonomy” of its radio division (Europe 1, Virgin Radio and RFM) (AFP /Archives/Thomas SAMSON)
Vivendi has launched its takeover bid for the Lagardère group but Arnaud Lagardère is not ready to leave the field: he has just announced a project aimed at once again assuming greater control over his radios, in particular Europe 1 , a station for which Vincent Bolloré has never hidden his interest.
To everyone’s surprise, Lagardère announced on Tuesday that it was studying “a project aimed at confirming the autonomy” of its radio division, which includes the generalist Europe 1, today at the lowest of the audiences, and the two musical Virgin Radio and RFM.
According to a press release, they could be “grouped under a partnership limited by shares” controlled by Arnaud Lagardère, who in 2021 had lost full powers over the group that bears his name.
The manager is familiar with this atypical form of company, which constitutes a bulwark against shareholder takeovers. He had himself become managing partner of Lagardère after the death of his father Jean-Luc, founder of the industrial empire present in publishing (Hachette), the media and defense.
Driven by heavy personal debt, Arnaud Lagardère had only accepted his transformation into a classic public limited company after a long shareholder struggle and in exchange for significant financial compensation and a mandate as CEO until 2027.
The operations mentioned on Tuesday must “be financially neutral for the Lagardère group” (which would become a limited partner), according to the press release, and validated by the summer of 2022 by the board of directors, then by the competent authorities.
– Arcom approval –
For the Vivendi group, controlled by Vincent Bolloré and which already holds 45% of the capital and 3 seats on the board of directors of Lagardère, the operation could make it easier to obtain approval from Arcom (ex-CSA ) necessary in the event of a change in the indirect shareholding of the radio stations.
The media giant also explained to AFP that it “completely agrees with Lagardère’s approach”, adding that “it was provided for in our agreements to maintain the integrity of the group”.
For its part, the French media regulator assured AFP “to carefully examine the project announced today” by Lagardère “once received precise information from the group”, and to remain “attentive to the independence editors and all the measures taken by the audiovisual groups to guarantee it”.
Because the announcement is a change of course for Arnaud Lagardère, who had “always explained that there was industrial consistency in having a media center bringing together radio stations, the JDD and Paris Match”, the group’s two other press titles. , reacted for his part the media expert Philippe Bailly.
In June 2021, Arnaud Lagardère publicly supported the merger of Europe 1 with the Canal + group, a subsidiary of Vivendi and owner of the very right-wing news channel CNews, the dream project of Vincent Bolloré.
– “Distrust” –
The two media have already begun to forge links, in particular with common programs and presenters, to the chagrin of journalists, many of whom left the air after an unprecedented strike.
“This assembly appears as a form of mistrust” towards Vivendi, noted Mr. Bailly, while the takeover bid has always been presented as friendly.
Sunday evening, the sovereign fund of Qatar (QIA), historic shareholder of Lagardère with 11.5% of the shares, had also expressed its intention not to contribute its securities to the operation. “It may be two signals sent to Vivendi to request an increase in its offer,” analyzed Mr. Bailly, interviewed by AFP.
Arnaud Lagardère had indicated that he would not contribute his securities (11% of the shares) to the “main offer”, open until May 20 with possible reopening until June 14, at a price of 25.5 euros per shares. On the other hand, he said he was ready to participate in the “subsidiary offer”, open until the end of 2023 at the floor price of 24.1 euros.
The boss of LVMH, Bernard Arnault, who owns nearly 10% of the group via Financière Agache, has informed him of his desire to contribute 2% of the capital to the main offer and the balance to the subsidiary offer, a way to support the project and not pass for the one who will have sold the group to Bolloré.
This takeover should also allow Vivendi to get its hands on the leader of French publishing, Hachette Livre, which it intends to marry to its own publishing group, Editis, an operation which remains subject to the European competition authorities, as well as on its network of shops in train stations and airports.
© 2022 AFP
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