Lagardère was shown on Thursday determined to see Canal + France go public by March 2011 because of disagreement on the sale of its 20% stake in Vivendi, the controlling shareholder group of pay TV.
Shaken last spring with a campaign of shareholder activist Guy Wyser-Pratte, the media group accelerates the sale of its minority, who constitute a conglomerate discount to its stock price.
Arnaud Lagardère, general partner of the group inherited from his father, was more cautious for the next big sale expected by analysts, that of its 7.5% remaining in the group of aerospace and defense group EADS.
During the presentation of interim results of his group, Arnaud Lagardere seemed more eager than ever to clean up these minority, among which 25% of Amaury, the owner of Parisien and L'Equipe, and 42% of media group Marie Claire.
He particularly stressed his determination to introduce Canal + France in stock while analysts saw it as far a new negotiating tactics of Lagardère, began several months in a poker game with Vivendi, which owns the remaining 80%.
"We go through the process (…), we will not turn on the road," he said during a conference call during the half year results.
GO QUICKLY TO CANAL +
Arnaud Lagardere wants to move quickly to avoid being caught by the tender provided during 2011 for the rights of Ligue 1 for the period 2012-2016, during which an initial public offering by Canal +, the main stakeholder, would the least sensitive.
The chief financial officer Dominic D'Hinnin, responsible for leading the operation, said that if it was not buckled before the end of the year, should wait until March because investors would know the results of Canal + in 2010 before committing.
Lagardère values in its accounts its 20% interest in Canal + France to 1.5 billion euros, or the proportional value of sales options exercised this year by TF1 and M6, which together held 15% of Canal + France.
Analysts doubt that Lagardère, which has no option, can achieve such a valuation at an IPO.
Under a shareholders agreement forged in 2007 when the merger between CanalSat and TPS, without an agreement between two parties on the price of participation, Lagardere could sell its shares on the market.
The Figaro had been reported that Vivendi had refused an offer of 1.35 billion euros Lagardère. Neither group had reviewed the information.
Vivendi has not made any proposal when we gave them (our) money.Their response was: we prefer to keep our money and invest in telecoms, "said Dominic D'Hinnin.
MORE TIME TO LEAVE OF EADS
Regarding EADS, the equation is more complicated. The action has returned 27% since the beginning of the year to close at 17.95 euros on Thursday, but still low and many analysts are convinced that Lagardere will not sell to under 20 euros.
Arnaud Lagardere also said he wanted to first ensure that the program of the future Airbus A350 was well underway before leaving the group's capital.
"There may be delays, or maybe not, we know nothing," he explained."But to be in position to sell those shares in EADS, we want to be 100% comfortable with the development of this aircraft, which means a little more time."
He added that he had the green light from the French government to withdraw and that the issue of the French-German balance in the capital of EADS was not within its jurisdiction.
"I do not expect sales at the end of this year, but if we have an opportunity, it is clear that we will seize this opportunity," he added.
Arnaud Lagardere also said that his discussions with Marie-Odile Amaury, which owns the namesake newspaper group, for a withdrawal had not been completed, while hoping to achieve in 2011, see this year.
He argued that a sale of the Parisien and Aujourd'hui en France, refocusing the group on the organization of sporting events and L'Equipe, increase conflicts of interest with Lagardere, also present in this area Marie-Odile Amaury placed in an "awkward position".
"It is important that we sell," he said. "We're trapped in a company we have no control and which we do not draw virtually no dividend".
Zurich Financial Services, Fourth European insurer, has seen its profits decline by 10% in first half as a result of provisions for defective mortgage loans and an increase in claims, including the earthquake in Chile.
The net profit of down 16% to $ 1.64 billion in the first half, against $ 1.97 billion during the corresponding period of 2009, Zurich Financial announced Thursday, said in a statement.
Operating profit activities (Business Operating Profit, BOP) declined 10% to 2.23 billion against $ 2.55 billion.
These declines are attributed to 330 million of provisions recorded in the second quarter in commercial real estate in Great Britain and Ireland.
In the first quarter, the group had recorded $ 200 million because of the earthquake in Chile.
Total depreciation amounted to 763 million during the first six months of 2010.
Zurich Financial has, however gains in net capital investment and depreciation of 418 million.
As usual, ZFS did not provide guidance for the full year.
The combined ratio deteriorated to 98% at end June 2010 against 96.2% a year earlier, and return on equity has deteriorated to 11.5% after 17.6%.
The solvency ratio has however improved to 232% at the end of the period under review.
Business volumes have expanded from 3% to 34.9 billion dollars, and 1% in local currency.
The pharmaceutical group Sanofi-Aventis, seeking a major acquisition, has approached the U.S. biotech Genzyme, we learn the source familiar with the matter.
Discussions are still in their infancy and there is no agreement expected in the immediate future, it says.Issues such as price and management have not yet been addressed, it adds.
The Wall Street Journal, which has revealed the information, officials of Genzyme, which specializes in products for the treatment of orphan diseases, are studying the amount that Sanofi would pay.
In Stock, Genzyme is 14 billion dollars (10.8 billion euros) but the group can require a significant premium given its portfolio of drugs, analysts said.
"If we take as a starting point the figure of 20 billion dollars that has been discussed before, this puts Genzyme to $ 75 (per share)," said Michael Yee, an analyst at RBC Capital Markets.
In exchange, the share of Genzyme blazed nearly 18% to 63.84 dollars at end of session.
Sanofi declined to comment.
Faced with competition from generic drugs, many pharmaceutical companies are looking for external growth.
In early July, the rumor gave Sanofi-Aventis, faces the expiration of patents on several important drugs, looking for acquisitions in the United States.
The sales of Sanofi made in the USA by its anticancer Eloxin fell sharply after the launch of generic versions, while its other cancer drugs, Taxotere, will drop its patent to the public in November in Europe and United States.
In late June, Sanofi announced the acquisition of American TargeGen for 560 million dollars (458.5 million euros) in order to strengthen the fight against cancer.
Late June-early July, the French laboratory has met its board of directors on the topic of acquisitions, had been taught to the time source familiar with the matter.
Friday, Biogen and Allergan, whose names had been mentioned as potential target for Sanofi alongside Genzyme, lost 5% and 2.5% in stock.
The New York Stock Exchange opened higher on Tuesday, supported by better than expected results released Monday evening by Alcoa.
A few minutes after opening, the Dow Jones industrial average thirty largest U.S. took 1.09% to 10,327.29 points, the S & P 500 index fund manager, gained 1.15% at 1091.15 and the Nasdaq, heavily weighted to technology, advanced 1.17% to 2225.89.
Alcoa, the first value referenced in the Dow, accounts for 2.21% at the opening after reporting late Monday results exceeded expectations under its second quarter, prompting investors to hope that other heavyweights the economy in their turn to share optimistic news.
The railroad company CSX also pleasantly surprised markets Monday and its shares gained 1.43% in early trade.
The avalanche of results which will soon go off just in time for investors who were reluctant in recent weeks on how to proceed.
"The problem in markets is that there was a lack of visibility and now we have," said Wayne Kaufman, John Thomas Financial in New York.
The pension reform presented Wednesday, June 16 by the Labour Minister, Eric Woerth, will help reduce the government deficit in France to 0.5 by 2013, when the government pledged to reduce it to 3 % of gross domestic product (GDP), according to estimates provided by Bercy.
"This reform helps to improve the deficit by about 0.5 percentage points of GDP by 2013, it was argued in the entourage of the Minister of Economy Christine Lagarde. By 2020, the measures announced by the government "would reduce the government deficit by 1.9 percentage point of GDP, they added the same source.
The government deficit (state, corporate and local) of France, formed by the crisis, should beat a new record this year, 8% of GDP.The Government is committed to the European Commission to take on the 2013-3% limit allowed by the European Stability Pact.
Brussels said Tuesday that France would "specify" the budget saving measures planned to take its objective and could be forced to take further.
The objective, "not less deficit, a deficit from zero in 2018," insisted Eric Woerth at the presentation of the proposed government reform, Wednesday, June 16 The key measure for achieving this and the decline of the statutory retirement age to 62 years. And a whole series of other measures, which help the rich, business, capital, etc..
Read about: Pension reform: who pays?
In total, the combined revenues related to raising the legal age of retirement, the alignment of the public on the private and various taxes and levies increases, will amount to 27.2 billion euros in 2018.
The government also plans to switch the unemployment insurance contributions on pension contributions from 2015, assuming a return to the green accounts Unedic.This shift would provide 1 billion euros of additional revenue in 2018.
In addition, the funding for the state retirement officials will now be frozen at its current level of 15.6 billion euros a year. This non-worsening deficit is included as a gain by the government in its calculations of pension funding. A calculation that is questionable to say the president of the National Fund of retirement, Daniele Karniewicz that "the account is not there".
The proposed reform of the government does not provide that additional income: it also includes a series of "fair" and "positive" in the words of the Minister of Labour.Maintenance of the device "long careers, can leave at 60 years under the" hardship "increase the number of terms validated during the period of youth unemployment, maternity leave compensation to the calculation of pensions for women, exemption from wage costs for companies that hire unemployed over 55 years, etc. … total, these measures will cost 1.3 billion euros in 2018.
What funding after 2018?
So in the end, the 42 billion euros needed to finance pensions in 2018 will be well assured, if it is based on calculations of the government. But before? Meanwhile the "deficit 0", the accumulated holes will be financed by the Pension Reserve Fund (RRF), whose assets reached 34.5 billion euros.The fund, which accumulates up financial reserves and is fed by a levy of 2% on income from property and investment.
It was established in 1999 by the Socialist government of Lionel Jospin to face the demographic shock expected after 2020. His assets should therefore not be released to the origin before that date. In fact in 2020 that the generations of the baby boom, the "boomers" of today, are retiring. The FRR was hoping to further capitalize on the funds entrusted to him and was expecting an available amount of 87 billion euros in 2020. This is not the case. All of its funds should indeed be engulfed by 2020.
And after 2018? A great deal of uncertainty about the future: the reform of government does not respond to this question. He places the cursor on the age of retirement in the heart of its reform.But the economic gains of this variable on the long term fading. According to the ROC, the rise of legal age to 62 years provides an improved pension deficit by half in 2020, then fourth in 2030 and only 15% in 2050. Indeed, after raising the age completed, improving the balance is reduced as a result of the increase in the average pension.
