Luxottica as a potential predator of Safilo given.

[Chris Ryser]

Focus of the market will now be on Luxottica as a potential predator of Safilo given...

Safilo to meet banks to discuss options-source
Wed Jul 29, 2009 5:00am EDT

MILAN, July 29 (Reuters) - Italian eyewear maker Safilo's management will meet creditor banks on Wednesday to discuss what options the debt-laden company has after talks with private equity funds collapsed, a source close to the matter said. Safilo (SFLG.MI), which has net debt of over 600 million euros, said late on Monday private equity funds had formally withdrawn from talks without presenting any offers and its board would meet by Aug. 4 to consider its next move.

The maker of Gucci, Dior and Armani eyewear, which has been looking to strengthen its balance sheet, also delayed the presentation of its first-half results.

Bain Capital had remained the last contender for taking a stake in Safilo after Pai Partners pulled out. [ID:nLH51280]

"In today's meeting the company will explain to banks why Bain pulled out. They will also discuss its situation, to understand what path to take, possibly with an industrial partner," the source said.
Safilo is not commenting on the process.

Competitors Marcolin (MCL.MI) and Luxottica (LUX.MI) have been mentioned as potential partners in the past and sources close to the matter have said Safilo's banks have been pushing for an industrial partner solution.

A source close to Marcolin has said Safilo was not discussed at its June board meeting and analysts have deemed a deal unlikely and prefer bigger competitor Luxottica.

Its CEO, who has said before it is not interested in Safilo, told analysts on a conference call late on Tuesday that he had no comment to make on Safilo when asked about the rival.

Berggruen Holdings, the biggest shareholder in eyewear group FGX Internatioanl (FGXI.O), has said it is interested in Safilo but did not receive a warm response. [ID:nLE458846]

Safilo's creditor banks include Intesa Sanapolo (ISP.MI) and UniCredit (CRDI.MI). It has a market cap of 114 million euros.

Safilo shares were up 2.7 percent at 0.405 euros by 0900 GMT.

(Reporting by Cristina Carlevaro; Editing by Greg Mahlich)

Source: http://www.reuters.com/article/compa...symbol=SFLG.MI

Safilo - Societa Azionaria Fabbrica Italiana Lavorazione Occhiali S.p.A. (Milan Stock Exchange)

As of 31 Jul 2009 0.41EUR

Price Change +0.00

Percent Change +0.49%
Analyst Recommendations = Sell

[chip anderson]

Maybe Obama will give them shares in some US enterprise for no money of their own. Something like the Crysler/Fiat arrangement. Of course in this case it would be foriegn compmany that makes the good products and maybe we could find an American one that makes somethng suitable for lawn ornaments only.

Chip

[hcjilson]

Chris, I am interested to know why on earth you would characterize Lux as a "predator"?

The definition of predator is: any organism that exists by preying upon other organisms.

Lux exists in it's own right, without preying upon anyone. Circumstances have presented themselves as business opportunities in the Safilo matter. Lux has had nothing to do with creating them, and I think it's unfair to call them predators, particularly in the title of a thread. Just my sense of fair play, please take no offense.

hj

[Fezz]

Chris, I am interested to know why on earth you would characterize Lux as a "predator"?

The definition of predator is: any organism that exists by preying upon other organisms.

Lux exists in it's own right, without preying upon anyone. Circumstances have presented themselves as business opportunities in the Safilo matter. Lux has had nothing to do with creating them, and I think it's unfair to call them predators, particularly in the title of a thread. Just my sense of fair play, please take no offense.

hj

In all fairness, I believe that the term "predator" was used in the original article that Chris referenced, and not Chris's term for describing Lux.

[Fezz]

For Harry:

http://www.cnbc.com/id/32183696

Here is a link to an article that uses predator and Luxottica.

You can find the predator comment under the Industrial Option section.

[hcjilson]

I see the word in Fezz's link but not in the link Chris gave. In either case, the word was misused, probably by some hack who didn't know the difference between "partner' and "predator". Thanks for the clarification Fezzmeister!:cheers:
hj
PS Chris knows how I love to rag him anyway!.....and yes, I was up early for golf Chris!:)

[Chris Ryser]

Chris, I am interested to know why on earth you would characterize Lux as a "predator"?

The definition of predator is: any organism that exists by preying upon other organisms.

Thank you Harry for letting me know that.................however it did not come from my own brain waves.

It came from the Italians at the Italian Central Bank:

"We believe that the focus of the market will now be on Luxottica as a potential predator of Safilo given... its larger scale, its strong cash flow generation and its management's strong track record in acquisitions and integrations," Centrobanca's Simone Ragazzi said in a research note." (http://www.reuters.com/article/compa...symbol=SFLG.MI)

Never under estimate Fezz, this guy is on the ball, one can not pull the wool over his beer.

Now that we settled that................what is going to happen when "Luxottica say's.............not interested ?" ...............If I would be Lux I would say that, and then pick up the pieces for cheap.

[Johns]

Chris, I am interested to know why on earth you would characterize Lux as a "predator"?

The definition of predator is: any organism that exists by preying upon other organisms.

Of course, there are more than one definition for every word...

pred·a·tor (prd-tr, -tôr)n.1. An organism that lives by preying on other organisms.
2. One that victimizes, plunders, or destroys, especially for one's own gain.





But my question would be, why would they want Safilo anyway. Why not just let them self destruct on their own, and re-sign the licensing agreements at a fraction of the price?

[Chris Ryser]

SAFILO (SFLG.MI)

Businessman Antonio Favrin, a director in Safilo and whosold a 20 percent stake in Valentino in 2007, is a possible"white knight" investor in the eyewear group, la Repubblica saidon Sunday in an unsourced report.