Technicolor SA rejects higher JPMorgan offer
PARIS, June 11
PARIS, June 11 (Reuters) - French company Technicolor SA has rejected a revised offer from JPMorgan Chase to buy a 30 percent stake for 179 million euros ($223 million) and opted for the original, lower offer instead, saying the higher offer carried additional conditions which it could not accept like a break-up fee.
Technicolor said it would now try to get shareholder approval for the earlier offer of 169 million euros ($211 million) from JPMorgan because the overall contract was better structured.
"The uncertainty created by the new condition outweighed the benefits of the Amended proposal," Technicolor said in a press release.
Technicolor, a provider of cinema production services and set-top boxes, is struggling with mounting debts and the loss of a contract with France Telecom.
It has been seeking a partner for its loss-making set-top box business and a buyer for its last remaining factory making the devices in France, which filed for insolvency earlier this month. Its debt stood at 957 million euros ($1.2 billion) at the end of 2011.
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