Ubisoft looks for help from Govt of Quebec to derail Vivendi's takeover attempt
Ubisoft Entertainment, the France-based video game publisher, has reached out to the Government of Quebec for assistance in its attempt to derail a takeover attempt by Vivendi, the France-based media and content company, reported The Globe and Mail on its website Monday.
The report said that Quebec Premier Philippe Couillard's government is keeping an eye on the situation but is unable to get involved in such a situation that pertains to two private sector businesses. The report added that Ubisoft employs approximately 3,000 people in the province.
Meanwhile, the report indicated that a potential showdown could materialize on Thursday when Ubisoft holds its annual general meeting, which is slated for Paris, France.
According to the report, Vivendi, which has established a stake of more than 20% in Ubisoft, has requested seats on the company's board of directors.
As well, Vivendi has indicated that it wishes to talk to Ubisoft in a non-hostile fashion, insisting that it is not open to contemplating a 100% takeover of Ubisoft until, at the earliest, sometime next year.
Meanwhile, the report said that Ubisoft does not wish to add Vivendi to its board since it believes that Vivendi would, among other things, get in the way of its strategy.
The report cited Quebec Minister of Economy, Science and Innovation Dominique Anglade as saying that a hostile takeover attempt is never the best option. Anglade added that the provincial government's priority is to keep jobs in the province.
According to the report, Ubisoft announced in February that it was on the lookout for Canadian investors to help it fend off Vivendi. The takeover target, noted the report, spoke with approximately 12 possible investors. Unidentified sources have said that the Government of Quebec's investment arm, Investissement Québec, was one of the parties that Ubisoft contacted.
In addition to trying to find Canadian investors, Ubisoft has pursued other strategies to derail Vivendi's plans. For instance, Ubisoft's founding Guillemot family upped its stake to around 13% of capital and nearly 22% of voting rights. As well, the company obtained the support for its objectives from important shareholders.
Wedbush Securities analyst Michael Pachter said in the report that Ubisoft will pull out all of the stops to stay independent, which could mean merging into another entity as a standalone unit. The analyst added that Take-Two Interactive Software of New York, New York could be open to such a deal.