Third Point Reduces Technicolor Stake ~ market folly

Thursday, May 31, 2012

Third Point Reduces Technicolor Stake

Dan Loeb's hedge fund Third Point late last month filed on the Paris Bourse regarding their stake in Technicolor (EPA:TCH).  Due to a disclosure on April 20th, Third Point have decreased their ownership stake in the company.

Third Point went from owning 7.66% of Technicolor's shares to 4.87% of shares.  This filing was made as they've now gone below the 5% ownership threshold that requires them to file.  We originally detailed when Third Point crossed the 5% threshold early this year to begin with.

About two weeks after Third Point's latest disclosure, Technicolor announced its plans to launch a rights offering to raise up to €158 million in order to fortify its balance sheet and implement its "Amplify 2015" strategic roadmap.

Third Point's founder Dan Loeb is profiled and interviewed in the new insightful book, The Alpha Masters.

Per Google Finance, Technicolor is "a France based company engaged in the development of broadcasting technologies. It supplies production, postproduction and distribution services for content creators, broadcasters and network operators. Technicolor’s activity covers services for Content Creators; digital home products and software service platforms, and research and licensing."

For more from this hedge fund, you can read Third Point's Q1 letter here.

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