Reuters: Mergers News: Technicolor board backs JPMorgan stake plan

Reuters: Mergers News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Technicolor board backs JPMorgan stake plan May 30th 2012, 06:26 PARIS | Wed May 30, 2012 2:26am EDT PARIS May 30 (Reuters) - The board of directors of French digital video specialist Technicolor has backed a plan for U.S. bank JPMorgan Chase to take a stake of up to 29.96 percent over a rival offer from private equity firm Vector Capital. The board will recommend that shareholders back the deal, which will see JPMorgan boost its holding in the group through a two-step capital hike, Technicolor said in a statement on Wednesday. "Technicolor will benefit from its association with JP Morgan Chase and Co, its global brand, its experience and industry expertise," Technicolor said. The proceeds from the capital increase of up to 158 million euros ($198 million) will "allow Technicolor to reduce its financial debt, increase headroom on financial covenants and benefit from JPMorgan Chase and Co's active support in further improving its balance sheet". Technicolor added that Vector's plan to buy as much as 30 percent of the French company would be back on the table only if shareholders rejected the JPMorgan plan at a meeting on June 20.

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