Technicolor rejects latest JP Morgan offer
JP Morgan and Technicolor’s board signed an agreement in May that would enable the former to take a stake of up to 30% in the set-top provider. However, a rival offer by Vector Capital forced it to revise its offer to €1.90 per share instead of €1.60, equating to an injection of capital of €180 million against Vector’s €186 million.
However, the board, which had recommended rejection of Vector Capital’s offer in favour of holding to its deal with JP Morgan, has now rejected the latest offer because of two new clauses, according to Les Echos. The first would enable JP Morgan to withdraw too easily from the agreement, in the board’s view. The board also rejected the second clause, which involved a demand for indemnity by JP Morgan in the case of negotiations breaking down.