Peugeot Looks for New Capital

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Oct. 14 (Bloomberg) –- Bloomberg’s Caroline Hyde reports on the proposed $3B share sale that wouldn’t be good news for investors. She speaks to Francine Lacqua on Bloomberg Television’s “The Pulse.” (Source: Bloomberg)

There is a good industrial project to do so with.

They are in talks with certain partners but none have reached a maturity.

This is the ongoing need of peugeot.

They need to diversify outside of europe.

We are seeing a 20 year low in terms of sales.

They're looking for new cooperations and trying to s lash that cash spending.

Where the prime minister talking to a radio station about the importance of this carmaker.

No wonder because they guarantee 7 billion euros of bonds that could be sold by peugeot, so clearly a key role in france whether it be in terms of employment.

The state remains interested.

He confirmed that yes peugeot is looking for an industrial partner.

No confirmation on who that might be yet.

He says before everything else, industrial strategy is the most important.

We know that the board meeting next week -- that is before they release third-quarter revenue numbers.

We have to wait until then.

Thank you so much.

A lot of pressure on peugeot, down 11%. a lot of reaction and francis morning.

We will talk about vivendi now.

Activision is no independent from its former parent company.

For more on vivendi, matt campbell joins us now.

We have got this transaction finally taking place.

We knew that was going to happen.

So far, it looks like it will be spun out.

The breakup of this conglomerate is now fully underway.

It seems to look that way.

This all started a decade ago to a very larger-than-life ceo who bought up almost half the planet and ran out of cash.

He was ousted and in the last 10 years vivendi has gone from strategies to strategies trying to find a way to direct its future that makes sense in the market.

They may finally be getting there.

Shares have rebounded a bit from where they were.

The company was really in trouble.

They're splitting off sfr this large french telecom business to focus on media, content.

That is the new vivendi.

They are -- there are always surprises.

It is hard to pinpoint where it all went wrong.

Sfr was the cash out of this business that drove the financial story.

What are the lessons we can take away from this?

For one thing, the european telecoms are a very tough place to be.

Success can be very short-lived.

Under the former ceo, who left about a year-and-a-half ago, they made a big bet on telecoms, taking full control of sfr for about 8 billion euros.

They were pledging to drive down prices.

You can get -- for about 5-10 euros a month.

That has had a huge effect on pricing power of sfr and orange, its major competitor.

Their earnings are really hurting.

That brought the whole vivendi model a bit unstuckl.

They but the stick from vodafone.

It probably depends on the price.

Vodafone, if you think of their map of europe, they are in the u k germany, spain, italy.

The resident missing piece right in the center.

I'm sure at the right price, the vodafone ceo would love to be in france.

For vivendi, it would be difficult.

To sell back sfr for a price less than they bought it for just a couple of years ago.

Thank you very much.

Let's move on.

Up next, taking aim at amazon.

How much could the supermarket move?

We are going to head to europe's top business school to find out in a moment.


This text has been automatically generated. It may not be 100% accurate.


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