Thursday, April 21, 2016

Duel frenzied auction between Conforama and Fnac to buy Darty – The Obs

In November, everyone thought the curly case. The engagement seemed solid between Fnac and Darty, 7 billion in sales and 333 stores in France between them, and a tricolor jewel of appliances and electronics was born. For an offer valuing Darty up to 797 million euros, “the cultural agitator” was going to grow and struggle on the international scene – amid union concern on the conservation of 27,000 jobs in both groups.

Patatras! On March 2, the string furniture and decorative objects C onforama subsidiary of a conglomerate of the South African furnishings, announced the surprise be willing to outbid the Fnac.

“the timing is surprising, everyone thought that the case was almost complete. But this shows that until a deal is not closed, anything can happen “then noticed a specialist analyst distribution to AFP.

Conforama outbid

while the Fnac alliance – Darty was not good news for the competition, which had to react: Conforama, which sells consumer electronics, is indeed already in trouble in his heart craft, furniture . Or Darty strategy evolves gradually to the world of home, including in the areas of home automation (or “connected home”).

in terms of geographical complementarity finally, Conforama is very present around cities, while Darty and Fnac are often in direct competition in the cities, sometimes a few dozen meters away. In short, all the advantages, argued the young boss of Conforama Alexander Nodal, to create a “French leader in the distribution of products and accessories for the home.”

March 18, Darty, turning his back on Fnac, accepted a binding offer that valued the Conforama to 864 million euros in cash which offer more, when Fnac offered a mix of cash and share exchange .

Darty snubs Fnac and chooses Conforama (18 March 2016)

“As a result of this announcement, the Darty no longer intends to recommend the offer Fnac, unless a more favorable offer as financially that under his execution certainty “then wrote Darty.

But Fnac did not give much for his offer and asked shareholders not to take any decision. April 11, Conforama formally opened its bid, before the rise of 10% on Wednesday 20 April. Another bombshell: its parent, Steinhoff, acquired at the same time a block of shares representing 19.5% of Darty. Wednesday night, the home appliance group (currently controlled by British capital) was valued at € 943 million and was thought won showdown

frantic poker Party

At least before this Thursday, April 21, where Fnac and Conforama have engaged all day in a fierce market battle, multiplying the auction. This is the sign of cultural products which, at dawn, launched hostilities, raising its offer to 145 pence per share, or 987 million euros; in cash, not in exchange for shares.

But that was just the first bounce of the day. At lunch time, Conforama-attacked against exceeding the billion euro. The dispatches fell only in news that the son of 20 minutes, Fnac had already 1.04 billion euros on the table. And just before 1530, Conforama announced its third-upmanship in less than 24 hours, to 1.09 billion euros.

Fnac Aura- does the kidneys to raise? Suspense. The advent surprise in the capital of a powerful shareholder, Vivendi (which acquired 15% early last week), could weigh in the balance. Two investment funds have also pledged his 22% stake in Darty, while recognizing backstage, notes the entourage of Alexandre Bompard with “L’Express”, the Fnac will not exceed a certain limit and if Steinhoff really wants to put the package on the table, “it is they who will win.”

L harshness of shows in any duel if how the two contenders are determined not to miss the train to the concentration in the electronics industry and its famous “synergies” ( establishing common counters, etc.) . As for Darty, its economic health and good public image makes it even more attractive, the acquisition by one or the other will decide his destiny by marrying at Fnac, the specialist in appliances would be strengthened in technical products, while an alliance with the Conforama would anchor on the domestic world.

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