Technicolor: potential sale unattractive at current levels - Oddo

Vantiva SA

19/11/2018 10:00

(Updates with share price, analyst comment)
    ** Shares in Digital media company Technicolor  TCH.PA  fall
17.3%, heading for their worst day since March, when co sold its
patent licensing division  urn:newsml:reuters.com:*:nL8N1QJ7YB
    ** Shares rose c.4% at opening, following Reuters report
from Friday that Technicolor explores options including full or
partial sale  urn:newsml:reuters.com:*:nL2N1XR19D
    ** Oddo BHF sees this information as credible but says there
might be a problem with determining valuation of operation with
co's current share price
    ** "Our vision is that an M&A transaction cannot currently
take place at satisfactory price levels for the shareholders,"
Oddo says
    ** Brokerage adds that recent history (undervalued sale of
patent licensing business) should make market cautious
    ** Co has also been exploring a sale of just connected home
div, sources said 
    ** Oddo says, on short-term, mgmt should first focus on
restructuring the division to bring back profitability and then
consider sale at more attractive valuation multiples
    ** Stock is bottom France's SBF120 index  .SBF120 
    

 ((anna.jaworska-guidotti@tr.com; piotr.lipinski@tr.com;
blandine.henault@tr.com))