Exor Philips stake: The huge investment corporation Exor bought a 15% interest in Philips in a shady deal. This method was utilized by Exor, which broke corporate rules. Recent Goldman Sachs filings with regulatory agencies show that they sponsored a series of complex derivatives agreements that produced this new strategy. To learn this, they read the papers.
The Philips-Exor declaration at the start of this week created waves worldwide. The famous Italian Agnelli family runs Exor. The daring $2.8 billion purchase of a 15% Philips interest made Exor the company’s largest partner. This raised Philips’ stock. Because of this, Exor became Philips’ biggest investor.
However, this game-changing action was made without violating Dutch financial market law’s transparency regulations. This clever move shifted the game all around. If a company’s Dutch equivalent interests are three, five, ten, or fifteen percent of its equity, it must perform these things.
Philips CEO Roy Jakobs was questioned by reporters about this unusual purchase. They wanted to know the complicated steps. Jakobs mentioned a financial company but didn’t discuss the deal.
A US Securities and Exchange Commission file revealed Exor’s early hidden activity. By June, Exor had acquired a 2.99% interest in Philips. This role was designed to function quietly to avoid immediate notice.
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The Dutch Financial Market Authority AFM said that Goldman Sachs bought 12.11% of Philips. This was unknown before that. Despite the August 14 date on the documents, the disclosures were made public on Wednesday. This ingenious move was made possible by a complex derivatives strategy that includes 95 million call options.
A derivatives arrangement enabled this savvy action. People familiar with the arrangement say Goldman Sachs was Exor’s agent. However, these same persons have decided not to elaborate. Goldman Sachs is Exor’s agency.
When asked about this peculiar agreement, Exor and Goldman Sachs said nothing. Keeping the agreement covert and mysterious was their goal.
According to sources, Exor’s legal counsel throughout the purchase was Allen & Overy, a well-known law firm. De Brauw claims the company was an expert for Philips at the time. The operation’s legal structure was revealed throughout the investigation. Despite these facts being public, Allen & Overy’s representative won’t comment.
An AFM spokesperson stated investors can achieve several shareholding standards in a day without penalty. This illustrates strategic investing’s flexibility and ingenuity. This new event happened among the confusion.
Philips, on the other hand, welcomed Exor’s new strategy with open arms. Over the weekend, a huge agreement was signed. The agreement guaranteed Exor could not expand its corporate share above 20%. The minimum bet was 20%. This strategy adjustment almost eliminates the possibility of a full-scale takeover bid. This illustrates investing’s flexibility nowadays.