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French consumer goods major Thomson maybe up for sale
Thomson neither denies nor acknowledges the move but investment bankers reportedly cough up $6 billion for the French consumer electronics major.
BY A CORRESPONDENT
March 15, 2006
LONDON, UK: Investment bankers have come together to put up a credit line of $6 billion (5 billion euros) as a consortium in a bid for French consumer electronics major Thomson after the firm said it was open to offers.
It may be noted that Thomson Chief Executive Frank Dangeard had disclosed this month that his firm would welcoming any offer which could give an impetus to its status as the world’s largest video and set-top box technology company.
Media reports quoted sources to reveal that and put U.S-based venture capital firm Silver Lake would also be involved in the bid.
Silver Lake has already invested $500 million in Thomson, though that investment was through private convertible bonds.
The reports did not say whether Thompson has been approached on the issue, but many investment firms are keen to take part in the proposed mega deal.
Thomson has neither denied nor acknowledged any such move.
Media reports have prompted a Thomson spokesperson to tell that the firm does not comment on market speculation'.
Thomson shares rose 11 per cent in Paris stock market following the market talk.
Thomson produces electronic goods including DVD players and cordless telephones.
The firm also offers sound and film processing services
In the year ended February, Thomson had recorded an annual loss of 573 million euros, compared to 561 million euros the previous year.
Some analysts say Thomson could be in the list of 20 firms reportedly identified by the French government as “national champions”. The firms identified as national champions may be protected from any takeover by foreign firms. But this is also yet to be confirmed.
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