PRISA may take stake in Le Monde's holding company

PRISA has signed a preliminary agreement with the trio of French investors (Pierre Bergé, Matthieu and Xavier Niel Pigasse) who, through the holding company Le Monde Libre (LML) own the majority (64%) of the French daily Le Monde. The trio are committed to investing EUR 110 million within four years. The letter of intent gives PRISA an option to acquire a 20% stake in LML at the same price paid by the three original partners, accompanied by a waiver of the rights laid out in the shareholders' agreement signed in 2005 with Le Monde SA. The agreement also provides PRISA with the option to withdraw from the company at a price agreed on by its current shareholders.

In 2005, when the French newspaper was looking into growth strategies, PRISA contributed to the plans of its management team, which resulted in a 15% stake. The paper has since undergone a severe crisis - it was even threatened with action at the Commercial Court - and this has forced the company to seek recapitalization and has led to the loss of the majority stake previously held by journalists and employees. PRISA has reaffirmed its willingness to cooperate in the revival of Le Monde if conditions are right.

The letter of intent signed yesterday with LML guarantees PRISA - if it should wish to exercise the option - an active role in shaping the future of Le Monde through the recognition of rights of veto over the appointment of the Chairman of the Managing Board (président du directoire), a position equivalent to CEO, and over the annual budget.