Announcement regarding rumour of takeover of Euro Disney SCA

[chrismoo]

New email from shareholder club this morning, might explain a few things.

I've no idea how this can work as there is not enough shares free to gain control, as I thought the Walt Disney Company has 51% or then Prince has enough to stop this sort of thing (unless hes in on it)

Dear Shareholder,

Euro Disney S.C.A.'s Management is aware that a company recently listed on the Frankfurt Stock Exchange and based in Zug, Switzerland, has scheduled a press conference for tomorrow to announce its intention to launch an "unfriendly takeover offer for Euro Disney". Despite our attempts to obtain information from them, we have been unable to secure material information on this company.

The Management of Euro Disney remains focused on its daily operations as well as its long-term growth strategy and is committed to building on the progress achieved this past year.

Next press release : First quarter Results on January 2007

Please feel free to contact us for any further information,

 

[disneyangel]

Sound a bit odd.

Hopefully it will be clear after the press conference.

 

[Cyrano]

Good to see the shareholder office responding publically to this rumour.

NB. I put this in its' own thread so that it is highlighted

 

[jillrobinson]

That would be in response to this story


"PARIS (MarketWatch) -- Center-Tainment AG (G5N.XE), a Swiss-based leisure company, is planning to launch a takeover bid for French theme-park operator EuroDisney (12587.FR), French weekly business magazine Challenges said Wednesday on its Web site.
A spokesman for EuroDisney said he wasn't aware of any such offer from Center-Tainment, which is listed in Frankfurt.
EuroDisney is 40% owned by Walt Disney Co (DIS) through its wholly-owned EDL Holding subsidiary, while Saudi Prince Al-Waleed bin Talal bin Abdul Aziz Al-Saud has an indirect 10% stake.
Center-Tainment, based in the Swiss tax haven of Zug, has called a press conference Thursday in a Paris hotel to unveil its bid, according to the magazine's web site.
The report added that Center-Tainment is going to offer its own shares that will value EuroDisney shares at EUR0.11 a share.
Center-Tainment has been listed on the Frankfurt stock exchange since September.
Shares in heavily indebted EuroDisney were trading at EUR0.08 on the Paris Bourse mid-afternoon, up 14% from Tuesday's close.
A press release purporting to come from Center-Tainment, and received by Dow Jones Newswires, said the company was created with the sole purpose of launching a takeover bid for EuroDisney.
The release, inviting journalists to Thursday's press conference, said Center-Tainment is being advised by "very experienced and influential managers of the leisure industry," but didn't elaborate.
The release said Center-Tainment is seeking to control at least 50.01% of EuroDisney's shares.
No-one was answering the German phone number given in the invitation, and only an e-mail return of address was given.
The release said that Center-Tainment "expects very hard resistance" from EuroDisney's management and from its main shareholder; the company pledged to put its own management team in charge of EuroDisney if the bid is successful.
The release also said Center-Tainment is engaged in negotiations with other potential, though smaller targets in the European leisure business.
To be successful, a takeover bid for EuroDisney would have to be approved by U.S. Walt Disney Co. because of EuroDisney's legal status as a partnership by shares. "

 

[sjaakie]

Oh my god that means Lederhosen in the park.

The Suisse are not really known for there sense of luxury.
Every Euro will be turned over three times before they will spend it on the park.

This could be a very sad moment for all of us Euro Disney lovers.

 

[Cyrano]

I'll watch this with interest.
Mind you a company that announces we cannot proceed today because or legal council is sick Are they dealing with a one man band rather than a corporate financial institution

 

[sjaakie]

I'll watch this with interest.
Mind you a company that announces we cannot proceed today because or legal council is sick Are they dealing with a one man band rather than a corporate financial institution

I thought that also a very "smelly" announcement.

 

[SandraVB79]

This morning, my newspaper said that Disney owns about 39% of teh shares, prince something about 10% and Half of the shares belong to the public.

Also, it said that absically, the company that wants to do the takeover (centertainment) plans to offer 0,11 EUR per share, but doesn't have the cash to pay you out, so you'll only get shares in some stinky company. I know I am not selling my shares!

I also thought it was rather funny they have only one person to do this deal, and that just now, he's sick.
It's fishy and stinky!!!



PS: The article also said that they want to renegotiate the license agreements with Disney for teh use of characters, and if Disney doesn't bring their prices down, they would run the park without characters. Can you imagine DLP without Mickey or princesses????


ETA: I should have read that other article first that wass copied in here
You know what? Maybe it's Michael Eisner who wants to run Mickey again!

 

[sjaakie]

Firm to make hostile bid for Euro Disney
Shares of the manager of Disneyland Resort Paris rise after an obscure Swiss company unveils unlikely takeover plan.
By Joseph Menn, Times Staff Writer
November 30, 2006

An obscure Swiss firm said Wednesday that it would launch a hostile takeover bid for Euro Disney, sending up shares in the money-losing manager of Disneyland Resort Paris.

With Burbank-based Walt Disney Co. owning 39.8% of the company, and a longtime investment ally, Saudi Prince Alwaleed bin Talal, owning 10%, the acquisition might have been planned in Fantasyland.

Nevertheless, hopes of a Cinderella ending drove Euro Disney's stock up 2 euro cents to 9 cents a share, the highest since July, on heavy volume.

Center-Tainment, which began public trading in Germany this fall, said it would explain the proposed stock-for-stock offer at a news conference today.

In a written statement, Euro Disney said it was aware of the scheduled news conference but had been "unable to secure material information on this company."

Walt Disney did not add more comment, and neither Center-Tainment nor the prince could be reached for comment.

Earlier, Center-Tainment executives told European journalists that the company would offer 11 euro cents' worth of its stock for each Euro Disney share.

Little public information was available about Center-Tainment. Bloomberg News reported that the company had a stock market value of 200 million euros, roughly half of Euro Disney's value.

Although Center-Tainment's approach so far is unorthodox, some Euro Disney investors might be willing to kiss a number of frogs in search of a new prince.

Euro Disney's stock has fallen more than 90% in the last decade, and the company has lost money in each of the last four years.

Under the terms of a 2005 restructuring, Euro Disney must increase earnings in order to avoid violating agreements with its lenders.

In Walt Disney's annual filing with stock regulators last week, the company said that it believed Euro Disney had met the required targets for 2006, but that the performance was subject to outside confirmation.


Source: Los Angeles Times.

 

[Scratch42]

Does this mean my August 2007 trip is in jeapardy?

j

 

[Cyrano]

Does this mean my August 2007 trip is in jeapardy?

j

Until the Swiss company formally declare a position this is just a rumour

 

[wideeyes]

I know I am not selling my shares!

Anyway I think the whole thing is very bizzare and to be honest I don't think it will happen.

 

[nifferwilko]

I'm tempted to go and buy shares (finally) to scupper their plans. I even think the company name sounds dodgy - like one of those companies you find on late night commercials selling rubbish childrens videos for £20!

I hope this does fail miserably for them. Especially with the whole licencing comment!!!

 

[Scratch42]

Until the Swiss company formally declare a position this is just a rumour

Keep us posted!


Hate to go to DLP and NOT see Mickey!
j

 

[wideeyes]

Keep us posted!


Hate to go to DLP and NOT see Mickey!
j

If this happens it will be no more DLP for us and I am sure the same would be for a lot of people, I would rather have the long flight to wdw and DLCA than have no Mickey and Minnie.

 

[Dizzydreamer]

Not too sure about this one?? If what I read is true and this company are planning to run DLP without the characters unless Disney reduce the prices then lets face it- It won't be Disney and none of us will go! After all how can you run a Disney resort without the characters?? Excuse the pun but it sounds a bit "Looney Tunes" to me!

But then again I am a Dizztdreamer

 

[dlpSteve]

They'd be fools to run it without the characters, they'd start losing money again if they did. They have a heck of a lot of money to recoup and to take away one of the biggest attractions would be financial suicide.

I'd be shocked if the takeover goes through but depending on the initial terms of the finance shareholders could be forced to sell. If it got to that point I'd expect to see Disney plough more money in to appease the financiers rather than have such a big part of their legacy taken over and tarnished by another organisation.

 

[Phil Harris]

At the risk of stating the obvious: if there is an all-share takeover by Center Tainment, then we won't be shareholders anymore! I imagine that in France (as in the UK) once a shareholder owns a certain number of shares, then they can force the other owners to sell up.

The actual bid looks like a load of cobblers (to use a technical phrase) since it appears to be based on this premise:
a) EuroDisney SCA pays too much licensing money to TWDCo
b) If the licensing contracts are renegotiated, EuroDisney SCA pays less money to TWDCo, therebey freeing up money to pay off the debts/pay dividends

The problem with this is the EuroDisney is controlled by TWDCo, regardless of the number of shares that TWDC owns in Eurodisney and there is absolutley no reason why TWDC would agree to this renogotiation that I can see.

Center Tainment's stock fell 65 per cent when they made this announcement, which tells you a little of what the markets think of the idea....

 

[Phil Harris]

I can't imagine that anyone financier in their right mind would lend money to someone wanting to by a Disney theme park (that is, let's be honest, a financial black hole) when there is no guarantee that, post takeover, the park will have Disney characters - then it would just be a black hole full stop.

I would have thought that the licensing agreements with TWDC are pretty watertight and would include provisions that say if EuroDisney SCA is taken over, then TWDCo can terminate the licensing agreements. meaning everything owned by TWDC would need to be stripped out of the parks. I would put money on that including the copyright to all of the rides and all of the theming/scenery. It wouldn't just be a park with no Mickey - it would be a patch of empty ground!

In the last month, Center Tainment's share price has gone from 30 Euros to 0.78 Euros. That speaks volumes in itself.

I will eat the hat of every person who has contributed to this thread if they succeed with this take over.

 

[sjaakie]

Centertainment has a capital of 63.000 Euro`s
I don`t think we have anything to worry about.