Lagardère: The Vivendi 'Put' Makes The Investment Case Very Attractive

Summary

• Lagardère has two different but desirable main businesses where there are very few pure-play exposures globally.
• There are eight overriding reasons for Lagardère shares to be mispriced.
• We view the best approach to valuing Lagardère as a sum of the parts, with the knowledge that in a Vivendi-driven dismemberment, the book publishing business will be spun off.
• Our sum of the parts valuation for Lagardère is €32.40 per share and the 30 June share price €20.70 represents 36% discount.

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The following segment was excerpted from this fund letter.

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Lagardère: only a minor possibility the business is properly valued

We have held a position in Lagardère (OTCPK:LGDDF) for over eight months after the shares