Exclusive: Ceconomy eyes deal with heirs of Media Markt founder - sources

By Matthias Inverardi and Arno Schuetze DUESSELDORF (Reuters) - Germany's Ceconomy, Europe’s biggest consumer electronics group, is in talks to resolve a long-running dispute with a major shareholder of subsidiary Media Saturn, people close to the matter said on Monday. Under the transaction being discussed, the holding of the Kellerhals family, Convergenta, would swap its stake in the jointly held Media Saturn for a 25% stake in Ceconomy and get a cash payment on top, the sources said. The Ceconomy shares would come from a capital increase in kind, with the total share and cash deal worth roughly 1 billion euros ($1.10 billion), the sources said

Reuters September 24, 2019 00:08:08 IST
Exclusive: Ceconomy eyes deal with heirs of Media Markt founder - sources

Exclusive Ceconomy eyes deal with heirs of Media Markt founder  sources

By Matthias Inverardi and Arno Schuetze

DUESSELDORF (Reuters) - Germany's Ceconomy, Europe’s biggest consumer electronics group, is in talks to resolve a long-running dispute with a major shareholder of subsidiary Media Saturn, people close to the matter said on Monday.

Under the transaction being discussed, the holding of the Kellerhals family, Convergenta, would swap its stake in the jointly held Media Saturn for a 25% stake in Ceconomy and get a cash payment on top, the sources said.

The Ceconomy shares would come from a capital increase in kind, with the total share and cash deal worth roughly 1 billion euros ($1.10 billion), the sources said.

Ceconomy’s shares briefly reversed earlier losses, rising as much 4.9% after the Reuters story was published before settling back to trade almost flat at 1040GMT.

Analysts have speculated that settling the dispute could allow Ceconomy to pursue a more aggressive acquisition strategy, with the European consumer electronics market seen as ripe for a shake-out due to competition from online players like Amazon.

Ceconomy, which split off from retail conglomerate Metro in part to allow it to become more active in acquisitions, took a 24 percent stake in French rival Fnac Darty in 2017.

Ceconomy management had battled for years over strategy with German billionaire Erich Kellerhals, the co-founder of Media Markt, who for years used his remaining stake in Media Markt to block Ceconomy management's plans.

Kellerhals died in 2017, prompting his heirs to attempt to resolve the dispute.

Sources close to the talks said the two sides were discussing the possibility of merging Ceconomy and the Media-Saturn holding group, in which Kellerhals' investment firm Convergenta holds a 21% stake.

Convergenta declined to comment.

A Ceconomy spokeswoman declined to comment beyond pointing to an earlier comment by Chief Executive Joern Werner, who said he was holding very constructive talks with the Kellerhals family and trying to put their past problems behind them.

($1 = 0.9117 euros)

(Writing by Emma Thomasson, editing by Louise Heavens and Thomas Escritt)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Snow-struck Madrid struggles with cleanup as severe frost grips Spain
World

Snow-struck Madrid struggles with cleanup as severe frost grips Spain

By Elena Rodriguez and Belén Carreño MADRID (Reuters) - Authorities struggled to clear ice and fallen trees from the streets of Madrid on Tuesday and temperatures in parts of Spain hit record lows after a snowstorm wrought havoc across the country at the weekend. Early jubilation at the historic snowfall, which saw skiers gliding through the streets and mass snowball fights, gave way to frustration as most public transport remained stalled and pedestrians avoided the icy streets. "You in Madrid are not ready for this," said Demetrio, a Ukrainian living in Madrid, who did not give his last name.

Trump disavows any responsibility for his supporters' Jan. 6 attack
World

Trump disavows any responsibility for his supporters' Jan. 6 attack

By Steve Holland and Andrea Shalal JOINT BASE ANDREWS, Md./WASHINGTON (Reuters) - U.S. President Donald Trump, facing impeachment on a charge of "incitement of insurrection" on Tuesday disavowed responsibility for his supporters' violent invasion of the U.S. Capitol last week and said his remarks before the siege were appropriate.

Renault and Plug Power to develop fuel-cell commerical vehicles
News & Analysis

Renault and Plug Power to develop fuel-cell commerical vehicles

PARIS (Reuters) - French carmaker Renault and U.S. hydrogen specialist Plug Power have joined forces to develop hydrogen-powered light commercial vehicles, they said on Tuesday. The companies have signed a memorandum of understanding to launch a France-based 50-50 joint venture by the end of the first half of 2021, targeting more than 30% share of the fuel cell-powered light commercial vehicle market in Europe, their joint statement said