The Technicolor board of directors has recommended the refinancing proposal put forward by JPMorgan in favour of a rival bid from the US turnaround specialist Vector.
The board had already entered into a contract with JP Morgan as part of a €158 million capital injection.
In a statement the board said the JP Morgan proposal represented the best offer to shareholders that would bring the best long-term value to the company.
“The JPMorgan Contracts provide a fully-negotiated 30-month agreement with regard to the governance of the Company, that would provide key support towards achieving the strategic goals outlined in Technicolor’s Amplify 2015 strategic plan and maximize shareholder value,” the board said in a statement.
It emerged that previous discussions had been held with Vector, which concluded at the end of April, ahead of the JP Morgan offer.
Vector, which currently holds 0.6% of the company’s capital, had tabled six proposals as part of a 17.5% capital increase that would have been backed by its investment vehicle Petalite Investments.