France's Savare family selling stakes in smart card maker




France’s Savare family is auctioning off a 60% stake in Oberthur’s smart card business to private equity investors,

the

Financial Times

reported.

The smart card business produces payment cards for banks and SIM cards for mobile phones. It accounts for more than 70% of the company’s revenues, the

FT

report noted.

The sale of the stake in Oberthur would enable the family to renew its pursuit of De La Rue, a U.K. banknote printer, the

FT

article said. It dropped its bid for De La Rue last year when its offer was declined. Oberthur has denied that it would rebid for the company, but the

FT

report noted that the sale of the stake in the smart card business would give it the resources to do so.

Two U.S. private equity firms are currently vying for the 60% stake, the

FT

report noted. The article said two other firms dropped out because they thought the price was too high and they “felt uncomfortable” with the Savare family keeping a 40% stake. (Source:

Financial Times,

July 28, 2011.)

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