France’s Technicolor has rejected the latest offer from JP Morgan to take a stake in the group. JPM and Technicolor’s board signed an agreement in May that would see JPM take a stake of up to 30 per cent in the STB maker.
Eventually a rival offer from Vector Capital forced it to revise its offer up to €1.90 per share from €1.60, equating to an injection of capital of €180 million against Vector’s €186 million.
Now the board, which originally recommended sticking with JP Morgan, has rejected its latest offer because of two new clauses. The clauses, say Technicolor, allow JPM to disengage too easily and also required an indemnity on its cost of pursuing the deal.