Home Stock Market Activist fund Bluebell calls on Vivendi to sweeten Common spin-off By Reuters

Activist fund Bluebell calls on Vivendi to sweeten Common spin-off By Reuters


© Reuters. FILE PHOTO: The Vivendi emblem is pictured on the primary entrance of the entertainment-to-telecoms conglomerate headquarters in Paris March 14, 2014. REUTERS/Charles Platiau

PARIS (Reuters) – An activist funding fund desires French media group Vivendi (OTC:) to sweeten the deliberate spinoff of Common Music Group with an additional money dividend that will be extra advantageous to minority shareholders.

Vivendi, managed by French tycoon Vincent Bollore, is planning to money in on its crown jewel – the world’s greatest music label, which it has valued at 33 billion euros ($40.43 billion) – as streaming revenues gas progress.

In a transaction involving an Amsterdam itemizing, Vivendi goals to distribute 60% of Common’s capital in form to present shareholders, which can permit Bollore retain a robust grip on the group.

In a letter to Vivendi Chief Govt Arnaud de Puyfontaine, Bluebell Capital Companions, which didn’t disclose the scale of its Vivendi stake, referred to as on Vivendi so as to add a money dividend of three billion euros to the deal.

Bluebell, which rose to prominence with a marketing campaign earlier this 12 months to oust the boss of French yoghurt maker Danone, mentioned the distribution-in-kind construction penalised buyers, in accordance with the letter seen by Reuters.

“We view the actual construction proposed to (the annual shareholder assembly) as extremely tax inefficient and respectfully query the steps already undertaken which in follow stop extra tax efficient options,” companions Marco Taricco and Giuseppe Bivona wrote within the letter, dated Might 21.

In addition they referred to as for Common’s itemizing to be shifted to the New York Inventory Trade.

Vivendi confirmed it acquired the letter, and a spokesman mentioned the group would have dialogue with shareholders on June 22, at its annual assembly.

Vivendi mentioned earlier in Might it may promote an extra 10% of Common to an American investor as a part of the deal.

Common, behind singers equivalent to Woman Gaga and Taylor Swift, is at the moment 20% owned by a consortium led by Chinese language large Tencent. The remaining 80% is owned by Vivendi.

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