On Wednesday, the Lagardère share soared 6.12% on the Paris Bourse reaching 28.08 euros.
In one month, the title has practically doubled in value!
This speculation around the title reflects the standoff between two billionaires: Bernard Arnault and Vincent Bolloré.
Bernard Arnault has decided to support Arnaud Lagardère by taking 26% of his personal holding but also by buying Lagardère SCA shares directly on the market.
In a few days he won 7% of the capital.
And he does not intend to stop there.
Opposite, Vincent Bolloré, boss of Vivendi, wants with his ally the Amber Capital fund, to drop the sponsorship that protects Arnaud Lagardère.
It therefore collects securities on the stock market and officially has 26.7% of the capital.
This sudden surge in prices has nothing to do with the state of health of the Lagardère group, which has been very strongly affected by the Covid 19 pandemic which is still paralyzing its Travel Retail activity.
This second business of the group after publishing continues to burn a lot of cash as long as the airports - where its stores are located - are idling.
Dry market
The explanation for this stock market battle is simple.
It takes place a few days before the decision of the Paris Commercial Court which, on October 14, will render its decision in the conflict between the duo Vivendi-Amber and the Lagardère group.
The two attackers demanded the rapid convening of a new general meeting in order to bring in four new members to the supervisory board of the Lagardère group.
The defenders, Arnaud Lagardère and Bernard Arnault, want to be able to influence a general meeting of shareholders, whether it takes place in November if the commercial court finds them wrong or in May 2021, if it proves them right.
Faced with this fury, the market is practically dry.
Vivendi and Amber control 47% of the capital.
The Amber fund has granted Vivendi a right of first glance if it decides to sell its 20% stake.
If Vivendi buys out, it will then be obliged to launch a takeover bid on the rest of the capital, as specified by the Autorité des marchés financiers.
For their part, Lagardère and Arnault own nearly 15%.
Qatar has 13.7%, and finally CDC and Amundi together have 6%.
Therefore, less than 20% of the capital remains in the hands of small shareholders.