Lagardere surges as Vivendi agrees to snap up Amber Capital’s 17.9% stake

Lagardere shares surged after Vivendi agreed to buy activist investor Amber Capital’s 17.9% stake in the French media group, paving the way for a possible takeover.

Vivendi announced on Wednesday that it would offer €24.10 per share for the 25.3m shares owned by Amber Capital.

It said the transaction will be completed by 15 December, after gaining the approvals required by the current regulations in light of the takeover that could result from the mandatory public offer following the acquisition.

Lagardere said in a statement that it was "delighted with the investment project that Vivendi wishes to carry out".

"This project demonstrates Vivendi's confidence in the relevance of Lagardere's strategic model based on the complementarity of its activities and its operational efficiency," it said. "It confirms the respect of the integrity of the Lagardere group and the support given to its management."

At 1040 BST, Lagardere shares were up 20.3% at €23.44, while Vivendi shares were flat at €31.71.