Glossary entry (derived from question below)
French term or phrase:
RO
English translation:
squeeze out / compulsory aquisition
Added to glossary by
Julia Gal
May 31, 2004 18:20
20 yrs ago
5 viewers *
French term
United States
Law/Investments/Finance (PhD & MBA)
Native in: English 
, Arabic
Works in: Arabic to English, English to Arabic, French to English, and 2 more.
RO
French to English
Bus/Financial
Finance (general)
Sentence:
Le CMF a déclaré recevable le projet d'OPR suivie d'un RO visant les actions Self Trade au prix unitaire de 2,40 EUR, initié par DAB Bank AG. La cotation des actions Self Trade reprendra le 19 ao?t 2002. L'OPR sera ouverte du 19 au 30 ao?t 2002 inclus. Le RO interviendra le 2 septembre 2002.
OK, so the CMF is Conseil des Marches Financiers, OPR is perhaps Stock Buyback Plan/Share Repurchase Plan (for Offre Publique de Retrait), yet what is the RO???
Le CMF a déclaré recevable le projet d'OPR suivie d'un RO visant les actions Self Trade au prix unitaire de 2,40 EUR, initié par DAB Bank AG. La cotation des actions Self Trade reprendra le 19 ao?t 2002. L'OPR sera ouverte du 19 au 30 ao?t 2002 inclus. Le RO interviendra le 2 septembre 2002.
OK, so the CMF is Conseil des Marches Financiers, OPR is perhaps Stock Buyback Plan/Share Repurchase Plan (for Offre Publique de Retrait), yet what is the RO???
Proposed translations
(English)
| 4 +2 | squeezeout / compulsory acquisition |
Julia Gal
|
| 4 | compulsory buy-out |
David Sirett
|
Proposed translations
+2
10 mins
French term (edited):
RO (French financial acronym)
Selected
squeezeout / compulsory acquisition
RO = retrait obligatoire, i.e. the new majority shareholder can force minority shareholders to sell their shares.
"Usually in France it will be critical for the bidder to acquire at least 95 per cent of the voting rights in the target - to be able to set off the interest expense of the acquisition vehicle against the profits of the target's group. Furthermore, a squeeze out (retrait obligatoire) of the minority shareholders cannot be initiated by the majority shareholder until this threshold of 95 per cent is reached. Failure to get to 95 per cent will significantly reduce the returns to investors as a result of the absence of tax consolidation, and 'leaks' in upstream dividends to minority shareholders. In turn, this leads to lower levels of debt."
"Natexis Banques Populaires (NBP), filiale de banque d'investissement du groupe mutualiste Banque Populaire, a déposé auprès de l'Autorité des marchés financiers (AMF) un projet d'Offre Publique de Retrait suivie d'un Retrait Obligatoire (OPR+RO) portant sur une participation de 1,99% dans la Coface. La banque, qui détient déjà 98,01% du capital de la Coface, offrira 73,50 euros par action, pour acquérir l'intégralité des titres restants. Dans le cadre de cette opération, L'AMF a demandé le maintien de la suspension de cotation des actions Coface."
"Usually in France it will be critical for the bidder to acquire at least 95 per cent of the voting rights in the target - to be able to set off the interest expense of the acquisition vehicle against the profits of the target's group. Furthermore, a squeeze out (retrait obligatoire) of the minority shareholders cannot be initiated by the majority shareholder until this threshold of 95 per cent is reached. Failure to get to 95 per cent will significantly reduce the returns to investors as a result of the absence of tax consolidation, and 'leaks' in upstream dividends to minority shareholders. In turn, this leads to lower levels of debt."
"Natexis Banques Populaires (NBP), filiale de banque d'investissement du groupe mutualiste Banque Populaire, a déposé auprès de l'Autorité des marchés financiers (AMF) un projet d'Offre Publique de Retrait suivie d'un Retrait Obligatoire (OPR+RO) portant sur une participation de 1,99% dans la Coface. La banque, qui détient déjà 98,01% du capital de la Coface, offrira 73,50 euros par action, pour acquérir l'intégralité des titres restants. Dans le cadre de cette opération, L'AMF a demandé le maintien de la suspension de cotation des actions Coface."
4 KudoZ points awarded for this answer.
Comment: "Very, very, very good... Actually, I received your message at about the same time I found out what it meant through an Internet dictionary... Many thanks..."
20 mins
French term (edited):
RO (French financial acronym)
compulsory buy-out
This was the term for RO (retrait obligatoire) used in the recent operation by France Telecom concerning Orange ('public buy-out offer' was used for OPR)
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