Vivendi Raises Hostile Bid for Gameloft 20% After Rejectionby
New offer is 6% above mobile game maker's closing price Monday
Bollore's move puts pressure back in camp of Guillemots
The tender offer was increased to 7.20 euros ($7.83) a share from the earlier 6 euros, according to a statement Monday from Vivendi. The new bid is only 6 percent higher than Gameloft’s closing price of 6.79 euros in Paris, because investors had been buying the stock in anticipation of a bidding war. The shares had a market valuation of 580 million euros as of Monday.
With the new bid, Bollore, an investor with an activist track record, puts the pressure back on the Guillemot family that runs both Gameloft and its larger sister company, Ubisoft Entertainment SA. Tension between the two sides has been building for months after Vivendi began buying stock in both video-game companies. It holds about 30 percent of Gameloft and has gradually increased its stake in Ubisoft, rising to 15.7 percent, according to a statement Monday.
Gameloft, earlier on Monday rejected Vivendi’s initial offer, saying it was too low and didn’t reflect the intrinsic value of the target company.