UPDATE 2-Technicolor board to review minority stake offer
* Board to meet on Wednesday afternoon to review offer
* Shares will be suspended ahead of the meeting
* Technicolor to issue statement after board meeting (Adds details from newspaper report)
PARIS, May 2 (Reuters) - French digital video specialist Technicolor said on Wednesday that it had received an offer from an "international institution" to take a minority stake in the struggling company.
Les Echos newspaper wrote on Wednesday night that U.S. bank JPMorgan was seeking to take a 30 percent stake in Technicolor via two separate capital hikes, one reserved for the bank and another for current shareholders.
Technicolor said in a statement its board would meet on Wednesday afternoon to review the offer and had asked that trading in its shares be suspended ahead of the meeting.
The prospective stakeholder would invest to support Technicolor's existing business plan through 2015, the company said.
According to Les Echos, the company's management supports the arrival of JP Morgan and had been seeking a new shareholder for months.
Technicolor suffers from a high cost structure and net debt, which reached 1.13 billion euros last year, while its loss-making set-top box business has been hit by telecom operators' moves to shift production to cheaper countries such as China and Tunisia and the impact of the eurozone debt crisis on prices.
After cutting 6,000 jobs last year, Technicolor aims to reduce debt by 200-300 million euros and generate 400 million in free cash flow over 2012-15 under its Amplify 2015 plan.
Technicolor shares closed at 1.59 euros on April 30, giving the company a market value of 358 million euros.
The stock has gained 38 percent this year amid hopes it would find a buyer for the loss-making set-top box business.
Last month, its chief executive Frederic Rose told Reuters that Technicolor hoped to find a partner for the set-top box business this year and was in talks with several parties.
Meanwhile, U.S.-based activist hedge fund Third Point, which has a 5.3 percent stake in Technicolor, is urging the company to sell its licensing operation, Le Figaro reported recently.
Last year, the company had a net loss of 324 million euros and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 475 million, down 6 percent.
In the late nineties, Technicolor failed to keep pace with technology changes in its core TV and cathode-ray tube-making business and ended up selling it to China's TCL in 2003.
Since then, it has shifted its focus to services for the cinema and entertainment industry through several restructuring plans and a change of management, though it came close to financial collapse in 2009. ($1 = 0.7561 euros) (Reporting by Dominique Vidalon and Julien Ponthus; Editing by Christian Plumb)
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