Vector Capital trumps JP Morgan’s bid for French Technicolor

US private equity firm Vector Capital, focused on technology investments, said it had increased to EUR2.00 (USD2.52) a share from initial EUR1.90 its offer to buy a stake in French broadcasting technology and services company Technicolor SA (EPA:TCH), trumping the proposal by JPMorgan Chase & Co (NYSE:JPM).

Vector Capital, which now owns 0.6% in Technicolor, is proposing to increase that stake to between 18% and 29.9% through a capital hike of up to EUR191.1m at the French group, the buyer said.

This new offer would bring EUR33.5m more cash to Technicolor than the transaction with JPMorgan, the private equity firm said.

Technicolor’s board has recently turned down an increased offer of EUR1.90 a share from JPMorgan, saying it preferred the first bid of EUR1.60 a share, as the revised one came was accompanied by unacceptable conditions.

JPMorgan, controlling 1% in Technicolor, proposed to raise that interest to between 25% and 29.96%. Under the first bid made on 2 May, it would invest between EUR147m and EUR158m in a capital hike at the French group, while the amount proposed in the revised bid would be between EUR169m and EUR179m.

Vector Capital said it would submit its irrevocable improved offer documentation for approval at the Technicolor shareholders’ meeting on 20 June.

Technicolor, present in Europe, Asia and the Americas, offers services for content creators, digital home products, software service platforms and research and licensing

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