Vivendi's Financial Firepower May Fuel Scoot's European Expansion

Strategic Insights -

Vivendi, a French conglomerate, has strengthened its ties with Scoot, an internet directory firm, by increasing its shareholding from 11.5% to 22.4% in July. This significant investment has sparked speculation about a potential takeover, with analysts predicting that Vivendi may soon acquire the Oxfordshire-based firm. However, Scoot has downplayed these rumors, stating that the increased investment is merely a sign of its desire to support future acquisitions. In a carefully worded statement, Scoot acknowledged that talks between the two parties may result in an increase in Vivendi's equity interest, but emphasized that there has been no suggestion of a full takeover.

Key Takeaways:

  • Vivendi, a French conglomerate, has increased its shareholding in Scoot, an internet directory firm, from 11.5% to 22.4% in July.
  • The increased investment has sparked speculation about a potential takeover, with analysts predicting that Vivendi may soon acquire the Oxfordshire-based firm.
  • Scoot has downplayed these rumors, stating that the increased investment is merely a sign of its desire to support future acquisitions.
  • The company is "actively pursuing a wide range of opportunities that can further accelerate the roll-out of Scoot services across Europe."
  • Opportunities include strategic alliances, acquisitions, and "other trading arrangements."
  • Vivendi backed Scoot's Pounds 178m acquisition of Loot, the classified advertising group, by subscribing for new shares at up to 250p each.
  • Scoot has a bright future in Vizzavi, the internet portal being developed by Vivendi and Vodafone, with which it already has agreements.
  • Robert Bonnier, chief executive of Scoot, has faced criticism from the City following several re-inventions of its business model, but has now cemented a solid relationship with Vivendi.
  • Scoot's shares have climbed to 152p, indicating a 21% increase following the statement.

Statistics:

  • Pounds 1.7bn: The speculated value of a Vivendi bid for Scoot.
  • 63%: The surge in Scoot's share price following weekend talks of a Vivendi bid.
  • Pounds 178m: The amount of Scoot's acquisition of Loot, the classified advertising group.
  • Pounds 16.6m: The rise in operating losses for the first nine months of the year, a 56% increase.
  • Pounds 8.2m: The fall in revenues for the first nine months of the year, a 38% drop.

Sources:

  • "Scoot denies it is being taken over by Vivendi" - Bloomberg
  • "Vivendi strengthens ties with Scoot" - Financial Times
  • "Scoot says it is pursuing opportunities to expand its services across Europe" - Reuters