LONDON (Reuters) – Worldline has sought advice from bankers on a defense strategy to reassure shareholders and avoid a hostile takeover following the collapse of its share price, two sources told Reuters close to the file.
Worldline is reviewing its options with Morgan Stanley and Rothschild & Co, including bringing in an anchor investor to help support its share price, the sources said on condition of anonymity.
Last week, advisers began sounding out potential investors, such as French financial institutions, pension funds and sovereign wealth funds, for a minority stake in the group, the sources said.
A friendly takeover by a candidate deemed acceptable to the French government could also be considered if measures taken by Worldline fail to restore investor confidence, one of the sources said. However, a recovery at this stage is unlikely, she added.
Worldline declined to comment.
On the Paris Stock Exchange, the stock rose more than 4% on Wednesday at the start of the session, before turning downward and losing 0.88% at 11:27 a.m.
These efforts come after the profit warning launched by Worldline in October, which caused its stock price to fall by more than half.
In December, the Bloomberg agency reported that Crédit Agricole was considering taking a stake in Worldline in order to support its partner in difficulty. At the time, the bank declined to comment.
Its rival BNP Paribas, for its part, disclosed a 3% stake in Worldline in November, shortly after the collapse of the stock price.
According to one of the sources, Worldline is also focusing on corporate governance issues, including leadership changes and finding a replacement for Bernard Bourigeaud, the board chairman, who died in December. .
Asset sales are also possible once the company has found a reference investor, the source said.
In December, Reuters reported that sales could involve the Mobility division, which offers digital payment solutions for ticketing services.
(Reporting by Amy-Jo Crowley and Pablo Mayo Cerqueiro in London, with contributions from Mathieu Rosemain in Paris; Lina Golovnya, edited by Blandine Hénault)
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