Worldline taps advisers for defence strategy amid share slump -sources
17/01/2024 08:19
(Adds share price move to JAN 16 story in paragraph 5)
By Amy-Jo Crowley and Pablo Mayo Cerqueiro
LONDON, Jan 16 (Reuters) - Worldline WLN.PA has lined
up bankers to advise on a defence strategy in a bid to reassure
shareholders and avoid a hostile takeover in the wake of a share
price slump, two people with knowledge of the matter told
Reuters.
The Paris-based payments group is reviewing options with
Morgan Stanley MS.N and Rothschild & Co, including bringing in
an anchor investor to help support the stock, said the people,
who spoke on condition of anonymity.
In the last week the advisers started sounding out potential
investors, such as French financial institutions, pension and
sovereign wealth funds, about taking a minority stake in the
group, the people said.
A friendly takeover by a bidder acceptable to the French
government could also be explored should Worldline's actions
fail to restore confidence among investors, one of the people
said. A takeover at this point was unlikely, however, that
person added.
Worldline declined to comment. Its shares rose as much as
4.2% on the Reuters report and were last up 2.9% on the day at
13.5 euros.
The efforts come after Worldline cut its financial targets
in October amid scrutiny by German regulators over
money-laundering controls, leading its share price to more than
halve.
Activist investor BlueBell last month urged the company in a
letter to shake up its board as a way to "restore trust",
Bloomberg reported.
French lender Credit Agricole CAGR.PA , a partner of the
payments firm, was looking at potentially buying shares in the
company, Reuters reported previously. The lender declined to
comment at the time. Rival BNP Paribas BNPP.PA disclosed a 3%
stake Worldline in November, shortly after the stock collapsed.
Worldline is also focusing on corporate governance matters,
including changes in management and finding a replacement for
Chairman Bernard Bourigeaud, who died in December, one of the
sources - the same as for the takeover comments - said.
Asset sales are also a possibility after it secures a
cornerstone investor, that person said.
Reuters reported in December that disposals would most
likely could come from Worldline's Mobility division, home to
digital payment solutions for ticketing services.
(Reporting by Amy-Jo Crowley and Pablo Mayo Cerqueiro in
London; Additional reporting by Mathieu Rosemain in Paris;
editing by Anousha Sakoui and Mark Potter)
((Amy-Jo.Crowley@thomsonreuters.com;))