Vivendi unlikely to increase ActiBlizz holding to planned level
Share price rise since original offer announcement to make extra 16 per cent too costly
Vivendi's original plan to increase its stake in Activision Blizzard after the company was formed is now looking shaky, thanks to a 50 per cent hike in the Activision share price.
When the deal was originally announced, Vivendi had planned to increase its original 52 per cent share in the new games company - expected to be the largest in the world - up to as much as 68 per cent by taking up an additional 146.5 million shares.
However, according to AFP, as reported by Thomson Financial, Vivendi CEO Jean-Bernard Levy now believes that the offer will "likely not be taken up" unless the share price dips once more.
"Since the offer was announced, the share price has gone from USD 21 to USD 31," he said, while the company is offering USD 27.50.