This agreement guarantee us a real liquidity

It is a business to the physiognomy deeply changed that was presented yesterday its Arnaud Lagardère shareholders in the General Assembly. "A number of operations that we we had premeditated led", he commented. Since the beginning of the year, three major actions have been completed which lead to a new balance of the activities of the company for the media between the acquisition of the fifth American publisher Time Warner Book, the entrance to the capital of Canal France up to 20 and its partial withdrawal, in April, Aeronautics and defence through the transfer of half of its stake or 7.5 per cent in the capital of EADS.

After having acquired Editis, then Hodder Headline, Hachette Livre is passed to gear by acquiring, in early February, the Publisher of literature public Time Warner Book for 430 million euros, taking third in the world of the sector. A few days later, in the audio-visual sector, Lagardere was an agreement with Vivendi for a ticket of 20 in the new Canal , the fusion between CanalSat and GST, bringing its 34 in CanalSat and a balance of EUR 375 million. This operation is still conditioned to the green light from competition authorities.

"We have achieved what we wanted, ensured yesterday Arnaud Lagardère. This agreement guarantee us a real liquidity. It allows up to capital, to remain in the 20 level and gives us the ability to buy Canal France, where Vivendi would be motivated to sell. "Within three years, the group will have to decide if it increases its participation, knowing that, whatever its level of participation, it will not"exclusive control ". The agreement signed with Vivendi still gives rights of veto over certain operations, such as the introduction in scholarship of Canal France or the entry of third parties in the capital of its major subsidiaries.

Positive Tésorerie

The third strategic movement operated by the group, since the beginning of the year, the sale of half of its stake in EADS, operation enabling Lagardère, which given the chosen financial mounting won't pay tax on capital gains, to recover about EUR 2 billion. All, without any challenge to its operational role since it keeps 7.5 in the capital of the aerospace and defence company.

Taking account of this operation, and no other assignments, the group that met all of its debt is found with a positive cash flow of EUR 200 million. Where the decision to fall 10, 1.10 euro, the dividend paid in respect of 2005. The company can thus mobilize around 4 billion euros. What consider acquisitions over the next two years, "perhaps in magazines and the distribution, certainly in the audio-visual sector," said Arnaud Lagardère, stressing that a critical size in each trade is essential to integrate the digital developments. It does not exclude acquisition structuring by 2008 provided that this is one occasion, but there is not "flight forward" or "reckless entry" in the Internet-related companies. For 2006, the group maintains its goal of operating income growth between 3 and 7, excluding investments in DTT, and with the euro at $ 1.25.