Free Newsletter

QUICK POLL
  • Which training workshop is of most value to your organisation?
  • Preparing your business for the Internet of Things
  • The Internet of Things and Cloud computing
  • Radio technologies for connecting the Internet of Things
  • Smart Cities and intelligent infrastructure
  • WebRTC and the end of the telco
EVENTS
Meet the leaders of the mobile app economy ? Open Mobile Summit, London, June 8-9
Navigation Strategies Europe 2011
ITU Telecom World, 24-27 October 2011 at Palexpo, Geneva, Switzerland
Ubiquitous Location and Positioning Technology, 6th-7th December 2011, Chicago
Advertize your telecoms job

Technicolor tables plan B for AGM

By PETER WHITE

Published: 1 June, 2012

READ MORE:

We're not yet sure whether Vector Group has the power to get a proxy fight going over two very different ways to fund Technicolor going forwards, but the board this week voted in favor of the JP Morgan based deal to acquire up to 29% of the company for what appears to be a pittance and voted down the alternative proposal. But it will still put the two plans up for discussion at its next shareholder meeting.

The original JP Morgan "Jesper Cooperatief" deal was announced on May 2nd and it was enough of a surprise to halt trading in the Technicolor stock for a day. It is designed as a two phase move, first a share placement, followed by a rights issue, but with the right issue at a premium due to the placement, and underwritten by the same company.

This immediately drew an unsolicited proposal from Vector - it wants to offer some €186 million in return for issuing another 109,114,822 shares. The deal the board prefers is the one it came up with to take on €158 million and give its share price a kick upwards. That money will pay back some debt and realign some other debts.

Deals like this have a way of coming back to bite the board. The second deal would bring in more money and a lot of investors, given a chance to vote on this, might prefer that one, depending on the level of dilution. The Board wants to be associated with JP Morgan Chase & Co, and thinks this will have an effect on doing business - investors may not agree. The JP Morgan deal is at €1.59 a share while the Vector deal is at €1.70 per share, making it more attractive at any investor vote - which is exactly why it has been proposed. Fundamentally these offers are often made to sabotage what are seen as weaker deals.

Technicolor has now proposed that it be discussed at the June 20 General Shareholders' Meeting and if its original plan does not get voted through, it may propose this one instead.

Related Stories

COMMENTS

Add Comment
No comments yet. Be the first to add a comment!
MARKET PLACE

    European Carrier Mobile Broadband Network Performance

    Analysing and comparing the data speed, latency, network quality and smartphone penetration for 94 mobile carriers in 28 European countries....

    Next Generation Haptics: Market Analysis and Forecasts

    An in-depth study of the growing popularity of haptics-enabled tactile feedback on mobile devices to augment UI interactions and enrich...
WHITE PAPERS

    Satellite Phones: Will Dual Mode Help the Phoenix Rise from the Ashes?

    Satellite phones have followed an arduous path since their much-hyped launch more than a decade ago. The hype was followed by an e...

    Mobile Widget Platform Market Analysis: Understanding the Business Case and ROI

    This white paper presents an analysis of the mobile widget platform market, as well as metrics supporting a mobile carrier?s busin...

POST COMMENT

You must be a registered user to post a comment. or
Username *
Email *
Comment *