MC Lvmh Moet Hennessy Louis Vuitton SE

   By Jessica Sier 
 

Lagardere SCA shares rose sharply on Monday after Groupe Arnault said that it will buy a stake equivalent to around one quarter in the Lagardere family holding, while Vivendi SA increased its stake in the media conglomerate.

Through Groupe Arnault, French billionaire and LVMH Moet Hennessy Louis Vuitton SE boss Bernard Arnault will hold around a quarter of the share capital of Lagardere Capital & Management, or LCM, through which fellow billionaire Arnaud Lagardere holds a 7.26% stake in Lagardere.

Groupe Arnault will take the position in LCM following a capital increase and share purchase, the two businessmen's holding companies said in a joint release. Financial details weren't disclosed.

Lagardere stock was up 14% at EUR12.83 at 1018 GMT on Monday.

"The family groups led by Bernard Arnault and Arnaud Lagardere will act in concert with regard to Lagardere SCA," the companies said, adding that the agreement will "strengthen the corporate structure and financial capacities of LCM."

The move comes as Lagardere's founding family tries to shore up support to combat activist shareholders.

Earlier in May, Lagardere shareholders rejected all 15 of activist fund manager Amber Capital's resolutions at the company's annual general meeting, including a proposal to replace all members of Lagardere's supervisory board.

The fund has built an 18% stake in Lagardere, making it the French company's largest shareholder, and has been pushing it to improve its performance.

Separately on Monday, the French markets authority said Vivendi had increased its shareholding in Lagardere. As of Thursday, Vivendi held a 16.48% stake in Lagardere, equaling 12.41% of voting rights. The French company announced last month that it had taken a 10.6% position in Lagardere.

Write to Jessica Sier at jessica.sier@wsj.com

(END) Dow Jones Newswires

May 25, 2020 06:52 ET (10:52 GMT)

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