In 2005, Lagardère SCA granted a stock purchase option plan to Group employees, the details of which are as follows:
- exercise price: €56.97
- expiry date of exercise period: November 21, 2015
- total number of options outstanding: 1,659,994
To hedge its obligations under this plan, Lagardère SCA carried out the following transactions simultaneously on November 21, 2006:
- sale of 430,519 Lagardère SCA treasury shares (previously held to cover stock purchase option plans) to Barclays Capital Securities Limited at a price of €56.00 per share;
- purchase by Lagardère SCA of 1,659,994 call options from Barclays Bank PLC.
On completion of these transactions, Lagardère SCA will have hedged its obligations under the employee stock option plan in full. Lagardère SCA will for the moment retain the remaining treasury shares (1,429,917, equivalent to 1% of the capital) assigned to cover stock option plans .
The transactions have no material effect on Lagardère SCA’s equity or net debt.
The transactions were arranged by Barclays Capital, the investment banking division of Barclays Bank PLC, which may trade in Lagardère SCA shares on the market as part of its hedge management strategy until the stock option plan expires. The Lagardère Group is a market leader in the media sector (books, distribution, press and audiovisual). The Group also has interests in the high technology sector via a 14.87% stake in EADS. The reference market for Lagardère shares is Euronext Paris (Eurolist – compartment A).