Constantin will fight hostile takeover

Highlight to buy EM.TV's stake in co.

BERLIN — The management of Constantin Film said Thursday it will fight a hostile takeover by Swiss-German distributor Highlight Communications.

Constantin’s management and supervisory boards met Thursday to discuss “defensive measures” against the planned takeover.

On Wednesday Highlight agreed to buy TV license trader EM.TV’s 16.4% stake in Constantin, giving Highlight a 41.4% stake in the publicly listed company. In accordance with German law, Highlight has to make an offer to Constantin’s minority shareholders for an additional 33.5%.

The takeover would thus leave Highlight with nearly 75% and considerably reduce the power of Constantin topper Bernd Eichinger, who holds 25.1%.

Highlight would pay minority shareholders $3.97 per share, the same price it agreed to pay EM.TV. Highlight is set to pay EM.TV $8.2 million plus provide the cash-strapped kidvidder with a loan in the single-digit millions.

Constantin said it would seek alternatives to Highlight’s acquisition, saying it would release a more detailed plan on Tuesday. Constantin shares, which rose 17% Wednesday following news of Highlight’s plans, went up again by nearly 10% Thursday before settling at $4.30.

Filed Under:

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Film News from Variety