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Deutsche bought the Cora shares19 October 2001Carrefour announced on Wednesday that Deutsche Bank AG has acquired a 42% stake in French supermarket chain Cora from French retail group Carrefour for 850 million euros. The institute was not pursuing any strategic interest in Cora but that the deal was a capital investment in the form of a debt-equity swap with Carrefour rival Casino Guichard-Perrachon said Deutsche presenter. Casino has watch Cora for a while but it has been prevented from acting because of antitrust restrictions. In the deal agreed now, Deutsche bought the shares and is holding the voting rights, while Casino bears the economic risk, having to pay compensation to Deutsche if the share price declines. At the same time Casino will pay fixed interest to Deutsche on the outside capital component of the financing. Deutsche used a similar financing structure in September with British Sky Broadcasting (BSkyB) and France''s Vivendi Universal. Vivendi sold a 23% stake in BSkyB to meet an antitrust condition set by the EU Commission. Even though the shares were sold to Deutsche, Vivendi bears the economic risk for a additional five years. |