Lagardere bows to activist investor pressure with concessions

Lagardere bows to activist investor pressure with concessions

THE WHAT? Lagardere has announced a series of structural changes designed to appease activist investors ahead of the company’s AGM this week, according to a report published by Reuters.

THE DETAILS The publishing house will allow shareholders, which include LVMH’s Bernard Arnault among others, to put forward board members and will up Chairman and CEO, Arnaud Lagardere’s, stake, via a capital increase of 10 million shares, addressing concerns that his power of veto was based on just a 7 percent ownership.

THE WHY? Activist investors Amber Capital have been pushing for sweeping changes at the publishing house. It’s hoped that the new changes will prevent a takeover.

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