Breaking News: Euro Disney Target of Hostile Takeover Bid

[pheneix]

A Swiss company that operates family amusement parks said Wednesday that it was making a hostile takeover bid for Euro Disney SCA, Europe's largest theme-park operator.

Center-Tainment AG, registered in the Swiss canton of Zug, said in an e-mailed statement that it will try to acquire 50.01 percent of Euro Disney's stock through a share swap and gain control over the company's theme parks.

The Swiss company said it will offer Euro Disney's shareholders about 14.5 cents for each of their shares. Euro Disney shares were trading at 8 cents at the time of the announcement. They rose to 12 cents in trading in Paris.

http://www.orlandosentinel.com/busi...30,0,919806.story?coll=orl-business-headlines

So... The Walt Disney Company has a golden opportunity to wash their hands of this resort once and for all and never look back. They would be insane not to seize it and run.

 

[miles1]

I'm no so sure the WDC will allow this to happen. Even if these investors regained control AND removed the Disney name from the park, it would always have the legacy of being "The Park that Disney Botched" versus "The Park That Short-Sighted Investors Screwed Up". I don't think Disney will allow itself to have its name sullied by a third party, even if their name isn't on the park any longer. Just my 2 cents.

 

[dazzer68]

how can another park but it when everything in it is disney?
disney would remove everything that they owned leaving a building site and some water!
this isnt going to happen look at all the money thats now being thrown at the park....and any how i cant see why its running at a loss weve just got back and never seen it so packed

 

[pheneix]

The could run it OLC style, where Disney collects licensing fees but otherwise lets another company run the show. I don't think this company organizing the bid has the resources to run Euro Disney like that though.

For Disney's part, however, this is a golden parachute. This resort is widely recognized as the turning point in Disney theme park operations. It all went downhill from there. Its not like the resort contributes anything worthwhile to the company anyway.

EDIT: The ghost company organizing the bid held a press conference this afternoon to release a few more details, but its still a pretty vague proposal.

Managers of Frankfurt listed Center-Tainment AG (G5N.XE) held a press conference in Paris Thursday to discuss their proposed all-share bid for troubled entertainment park Euro Disney SCA (12587.FR), a move that's triggered an inquiry Thursday by the French financial regulatory body AMF.
Wednesday Center-Tainment said in a press release it would offer its owns shares for a 50.01% stake in Euro Disney. The object of the take-over was to unseat management and clear a path to profitability.
After the press conference Thursday shares in Euro Disney sank 11% in heavy trading to EUR0.08, having soared 29% Wednesday despite Swiss-based Center-Tainment's relative obscurity.

http://www.marketwatch.com/news/sto...x?guid={090D1CA2-FE0F-4C8C-A3A8-4CDB6B899544}

 

[CoffeeJedi]

Cody over at The Disney Blog has some interesting info:
http://www.thedisneyblog.com/tdb/2006/11/euro_disney_tak.html

According to him, it can't happen without Disney's consent.

 

[Tim G]

I'm no so sure the WDC will allow this to happen. Even if these investors regained control AND removed the Disney name from the park, it would always have the legacy of being "The Park that Disney Botched" versus "The Park That Short-Sighted Investors Screwed Up". I don't think Disney will allow itself to have its name sullied by a third party, even if their name isn't on the park any longer. Just my 2 cents.

Rest assured, the WDC won't let it happen, tomorrow there will be an emergency telepone conference about this with all the the major and biggest shareholders.
And as things look now, it's not going to happen...

 

[wedway71]

Rest assured, the WDC won't let it happen, tomorrow there will be an emergency telepone conference about this with all the the major and biggest shareholders.
And as things look now, it's not going to happen...

I actually lost sleep over this-lol. Even though DLP is loosing money as of now I think TWDC has the power to weather the hard times and make DLP a VERY PROFITABLE park.
I was hoping Corrus would chime in and put my mind to ease.:sohappy:

 

[Connor002]

Euro Disney SCA denies that it has been approached, as of yet.

In any case, it couldn't happen without TWDC's consent. Considering the investment, I doubt they would be willing to sell of such a large portion of the Parks and Resorts branch. Of course, I've been surprised before in their business decesions...

 

[Madison]

I'm by no means business-minded, but if the Company ultimately did agree to sell its assets in France, wouldn't that amount to a basic admission that it's no longer capable of effectively operating the division of its company that its success (and much of its profit) is built upon?

 

[Tim G]

I actually lost sleep over this-lol. Even though DLP is loosing money as of now I think TWDC has the power to weather the hard times and make DLP a VERY PROFITABLE park.
I was hoping Corrus would chime in and put my mind to ease.

Leave the insomnia to me...

Some day it Will be a profitable park, it's still is one of the most profitable parks in Europe, but Europeans are just different than US people...

We say things like... WHOA we're going to Walt Disney World or Disneyland...
While Europeans say... We'll have a nice weekend in Disneyland Paris...
Most Europeans only think what it will cost them , and hoping they will have a dry weekend. :lookaroun

Dineyland Resort Paris hasn't been build in the wrong place, but in the wrong country...
however, it's a better place than Spain, in ie. Barcelona you would only have revenue in the 12 summer weeks... :lookaroun and is more difficult to reach.
Paris is very easy to reach from all parts of Europe... but doesn't have the advantage of almost sunshine...

Now go to bed and SLEEP!!! :snore: :kiss:

 

[wedway71]

Should have seen the looks I got when asked why I had bags under my eyes today at Mgt meeting and I replied Disneyland Paris is in trouble!:lookaroun

 

[wedway71]

Well this CEO of the Swiss company doesnt have all of his ducks in a row.If your going to try to get the shareholders of Disnyeland Paris to want the takeover he should have something to offer and have some eperience to offer them to proove he can change the situation around.If he was able to say he has 30 years of park experience with solid growth and profits that he can show on paper -MAYBE? But he has a bunch of fantom investors according to him that have no theme park experience or a plan at all.

 

[RonAnnArbor]

I would think that anyone looking at a takeover bid would also know that DLP has a multi-year refinancing deal that NO other company would want to inherit.

As to what changes it would make if it does occur? Probably none except for internal financial and tax breaks and the hope that they would turn a profit down the road. Licening would be arranged in such a way that nothing would change in the park itself. Look at the US Postal Service. How many people know that it is NOT owned by the US government anymore, yet it is completely administered by them. It would be that transparent to the park-goer.

Still -- not sure this is anything but rumor - because the realities of the Disney bank deal would make it next to impossible to sell anything.

 

[pheneix]

I would think that anyone looking at a takeover bid would also know that DLP has a multi-year refinancing deal that NO other company would want to inherit.

Indeed. That is why I say that if these guys seriously want to put up the kind of money to wrestle that beast, then Disney should just take it and laugh their way to the bank.

 

[it398]

i don't really see this happening, at least not in this way. the WDC will not allow a hostile takeover of something which bears its name without a long discussion before hand.

Also (albeit briefly) Euro Disney SCA made a profit before the construction and opening of the WDS. i believe that in a few years this will again be the case and the company can then start to make money.

 

[ajb_tic_tac]

I'm sure this won't happen and really don't want it too.

I think Disneyland Paris is unique and fantastic. A truly beautiful Disneyland Parc and Studios that started off light but will improve.

It's the nearest thing I have to a local Disney resort and love it.

 

[disney_nutter]

http://www.orlandosentinel.com/busi...30,0,919806.story?coll=orl-business-headlines

So... The Walt Disney Company has a golden opportunity to wash their hands of this resort once and for all and never look back. They would be insane not to seize it and run.

there is nothing wrong with euro disney for the most part it is far better themed in its lands than the magic kingdom and space mountain in itself is an amzing ride. plus disney wont sell the land as disney is currently expanding the studio

 

[it398]

the article in the orlando sentinal says that the swiss company which has expressed an interest has a market value at around $260 million.

the problem i see is that last year EuroDisney SCA made a loss of $116.5 million according to the orlando sentinal.

surely no company of this size can sustain those sorts of losses repeatidly.

 

[wedway71]

This Swiss company might have the capital to fund a takeover but I dont think TWDC will allow this to happen.Yes DLP has lost money but it will return a profit at some point soon.I think TWDC,the other share holders,and Prince Alaweed all realize this as well and when it does it will be very profitable.Even though this certain park is loosing money now,TWDC is making huge profits to float the current situation.
And again as I said before what really besides capital does this company offer the shareholders of Disneyland Paris SCA?????
Its like going for a big V.P. job with a huge company with no Resume or backround? TWDC cant even get any info on this company at all or what game plan the Swiss CEO has to turn the park around.

 

[pheneix]

And again as I said before what really besides capital does this company offer the shareholders of Disneyland Paris SCA?????

They may want to try and re-finance the resort's debt so that interest payments are more sustainable. Universal Orlando took advantage of those resources when GE bought them out, and it is pretty much the only reason that resort is profitable now. I saw another quote somewhere where they said that they want to renegotiate the management contract with WDC so that the royalty fees the company collects are substantially less. That would be a breach of Euro Disney's contract though. They may just take their name off the resort and run if this company actually completes its takeover. This company may also want to sell off some of the resorts on property. That's a sure fire way to raise some capital and reduce debt. If they can find a buyer that is.

there is nothing wrong with euro disney for the most part it is far better themed in its lands than the magic kingdom and space mountain in itself is an amzing ride.

I'm not talking about the park itself, which is supposed to be one of the most beautiful in the world. It is going through the same problems as Universal Orlando. They built this awesome resort, but they've let idiots run it and now they've run it into the ground. It has lost money since Day 1, and now it has a reputation of being one of the worst operated theme parks in the world. I can see why this investment group thinks they can do a better job of running things. I don't think this company has the resources neccessary to actually pull this resort together if or when they make a takeover, but if they are crazy enough to put up the funds to try, then by all means, let them go right ahead.