"Up to 150 million is possible"
Media analyst Chris Burger of Bank Vontobel on the (remaining) price of 20 Minuten.
Media analyst Chris Burger from Bank Vontobel on the (residual) price of 20 Minuten.WW Mr. Burger, is a piecemeal takeover like that of 20 Minuten (Schweiz) AG, where the tranche prices are performance-
are also common in other industries?
Chris Burger Absolutely. A current example is Jelmoli's purchase of the real estate company Tivona. Like Tamedia with 20 Minuten, Jelmoli is gradually investing in future potential that is difficult to assess, specifically in planned construction projects. The difference between the purchase price offered and the purchase price demanded is correspondingly large.
Tamedia is said to have offered CHF 100 million for the remaining 50.5 percent of 20 Minuten, but Schibsted demanded CHF 150 million.
On the basis of the available and estimated company data, I consider these amounts and the difference between them to be entirely possible.
Which party would benefit more from an early conclusion of the takeover agreement concluded in March 2003? Tamedia would probably like to conclude the
overall package and thus gain control of the commuter newspaper. Strategically, this makes sense because it would then have a free hand for its further development and any cooperations. And financially, because 20 Minuten could then be fully consolidated and improve its income statement.
In August, you forecast an operating profit of CHF 50 million for Tamedia in 2004. Is that enough for such a major investment?
The decisive factor here is not the course of business, but the amount of cash and cash equivalents and the balance sheet ratios. These are excellent at Tamedia, so such a deal would not be a problem.
Interview: Oliver Classen
are also common in other industries?
Chris Burger Absolutely. A current example is Jelmoli's purchase of the real estate company Tivona. Like Tamedia with 20 Minuten, Jelmoli is gradually investing in future potential that is difficult to assess, specifically in planned construction projects. The difference between the purchase price offered and the purchase price demanded is correspondingly large.
Tamedia is said to have offered CHF 100 million for the remaining 50.5 percent of 20 Minuten, but Schibsted demanded CHF 150 million.
On the basis of the available and estimated company data, I consider these amounts and the difference between them to be entirely possible.
Which party would benefit more from an early conclusion of the takeover agreement concluded in March 2003? Tamedia would probably like to conclude the
overall package and thus gain control of the commuter newspaper. Strategically, this makes sense because it would then have a free hand for its further development and any cooperations. And financially, because 20 Minuten could then be fully consolidated and improve its income statement.
In August, you forecast an operating profit of CHF 50 million for Tamedia in 2004. Is that enough for such a major investment?
The decisive factor here is not the course of business, but the amount of cash and cash equivalents and the balance sheet ratios. These are excellent at Tamedia, so such a deal would not be a problem.
Interview: Oliver Classen
