Paris (AFP)

The Lagardère group confirmed on Monday that it was studying its transformation into a public limited company, a governance upheaval that would cause its boss Arnaud Lagardère to lose absolute control of the group inherited from his father, owner of Hachette Livre and several media including Europe 1 and Paris Match.

The transition to more traditional governance would mark the outcome of a shareholder conflict that began several years ago.

According to media including Le Point and Les Echos, the group's shareholders, namely Arnaud Lagardère, Bernard Arnault (Groupe Arnault), Vincent Bolloré (Vivendi), Joseph Oughourlian (Amber Capital) and the sovereign wealth fund of Qatar, are on the verge of to reach an agreement, after several months of negotiations, and a supervisory board to endorse the change could take place as early as Monday or this week.

"Lagardère SCA confirms that it is currently studying a transformation project into a public limited company, about which discussions are underway between it and its main shareholders," according to a statement from the group released Monday morning.

The end of this atypical status, a bulwark against shareholder takeovers and which gives general partners almost total power, is a long-standing demand of Arnaud Lagardère's most fervent detractor, the British fund Amber Capital.

Shortly after the opening of the Paris Bourse, the title Lagardère soared by more than 7% (to 23.9 euros), a sign that the market was reacting favorably to the prospect of seeing the group become "operable" again.

However, in this file which has known multiple reversals, "there is no certainty as to the outcome of the discussions in progress", indicates the Lagardère press release.

Arnaud Lagardère was shown in October open to a cancellation, provided that the shareholders do not seek to have his "scalp".

- No dismantling?

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According to the press, at this stage of the negotiations, the heir of Jean-Luc Lagardère would have agreed to give up this protective status in exchange for a CEO position until 2026 and the equivalent of around 200 million d euros in new shares.

He now holds 7% of the shares.

But the negotiations also focus on the future of the group's assets.

Vincent Bolloré, at the helm of Vivendi who took a stake in Lagardère a year ago and has since become its first shareholder, does not hide his interest in Europe 1 radio and the publishing branch that he could marry to Editis.

Bernard Arnault, who joined Arnaud Lagardère last year, is known to be interested in the magazine Paris Match and the weekly JDD, and even the network of shops in train stations and airports.

Under the influence of the health crisis, the Lagardère group widened its loss in 2020, which reached 660 million euros.

The overall turnover collapsed by 38% over the year.

It is due to publish its turnover for the first quarter of 2021 on Tuesday morning.

© 2021 AFP