JP Morgan, which was favoured by Technicolor over a counter bid by US turnaround specialist Vector, has had an amended proposal rejected by the Technicolor board.
Under the proposal the subscription price for shares issued under the capital increase would be raised from €1.6 to €1.9 per share, putting the total money received at between €169 million and €179 million.
However the new terms, which Technicolor says were not included in the JP Morgan contracts, added a break up fee and a clause that freed JP Morgan from its obligations if a new concurrent resolution was approved by shareholders.
“The Board concluded that the firm and irrevocable nature of the JPMorgan Contracts was more beneficial to the Company and its shareholders, and that the uncertainty created by the new condition outweighed the benefits of the Amended Proposal,” Technicolor said in a statement.
The company is now seeking the approval of the original May 2 proposals.
