One Hedge Fund Takes on the French Establishment
An activist wants a fresh board at French publisher Lagardere. With Vincent Bollore circling, the case for an overhaul is strong.
A chess game at Lagardere.
Photographer: ERIC PIERMONT/AFPA storied French media group is a challenging target for shareholder activism — especially when the agitator is a foreign hedge fund. But Lagardere SCA, owner of the Hachette publishing house, is facing real pressure from Amber Capital U.K. LLP. Stake building by media group Vivendi SA and, reportedly, French investor Marc Ladreit de Lacharriere suggests a chess game is about to start. Amber Capital’s case for stronger oversight gets more compelling by the day.
Lagardere has evolved from a conglomerate into a group with a twin focus on media and travel retail. The business mix may make sense now but the dealmaking needed to get there generated painful writedowns. Lagardere has underperformed the European media and retail sectors on a total shareholder return basis over the five years to Dec. 31, and the broader market over the last decade.