companies/ government tries to stop EA takeover

[Thirteen]

looks like UBISOFT has some friends in high places

French government may defend Ubisoft in EA share grab

EA's purchase of nearly 20 percent of Ubisoft's shares prompts the French government to take notice--and possibly jump into the potential squabble.
Last week, the French business daily Le Tribune reported that Ubisoft might get a little help from some higher authorities to help defend the French game publisher from a potential takeover by industry rival and software giant Electronic Arts.

As reported by the AFX wire service, the French government, which has been a watchdog of sorts to the burgeoning game-developing industry in France, may step into the mix to protect Ubisoft in an effort to save that company and possible strikes at other French game developers and publishers, such as Infogrames.

EA purchased 19.9 percent of Ubisoft stock from European investment firm Talpa Beheer BV on December 20. While the purchase of Ubisoft by EA was referred to as "hostile" by Ubisoft CEO Yves Guillemot, EA has stated that it would be "very good shareholders."

The precautionary measures that are being considered by the French government would make a takeover by EA difficult.

AFX also reported that French newspaper Les Echos said Ubisoft is considering increasing the shares owned by Ubisoft founders, the Guillemot family. That group currently owns the largest block of stock in the company at 22.8 percent. Reportedly, Ubisoft will be gathering its largest stockholders together to convince them not to cooperate with any advances from EA.

VU Games merging with Ubisoft?

French newspaper reports the two France-based publishers are discussing a possible union; VUG says it ain't so.
They day after it was revealed the French government may intervene to protect Ubisoft from a possible takeover by Electronic Arts, Reuters is reporting the company may have another suitor.

The news service is quoting an article in French newspaper L'Agefi, which is reporting that Vivendi Universal Games is considering buying Ubisoft. L'Agefi cites a source close to the proposed deal as saying the two companies have already held talks on a possible merger, though the article did not mention how far those talks have progressed.

In response, VU Games released a terse statement denying it was planning any takeover of Ubisoft. "In view of the rumors reported in the press, Vivendi Universal [Games] denies that any negotiations are taking place concerning the takeover of Ubisoft," was the entire text of the release from VU's Paris headquarters. Ubisoft had not commented as of press time.

Were Ubisoft and Vivendi to merge, the combined company would be the largest publisher in Europe, a title currently held by Atari parent Infogrames. Ironically, yesterday Infogrames CEO Bruno Bonnell hinted to Reuters his company might help Ubisoft fend off a takeover by EA. "It would be a pity to see great European creations end up in a relatively hegemonic U.S. conglomerate," he said.

However, analysts were quick to point out that both VU Games and Infogrames aren’t exactly flush with cash. Both companies saw a lot of red ink in 2004, with VU games suffering an operating loss of 185 million euros ($245.3 million) during the first three quarters of the year. By contrast, Electronic Arts has $2.5 billion in cash on hand, according to Reuters--far more than Ubisoft's 375 million euro ($497.36 million) market value.

Regardless of whether any of it pans out, all the takeover talk has been a boon for Ubisoft's stock. The company's share price has increased over 60 percent since Electronic Arts bought 19.9 percent of the company in December 2004, and ended the day at 27.50 euros ($36.47).

By Tor Thorsen -- GameSpot

[Woodrow]

Fucking French. This would violate their agreement with the WTO.