Why have three of France's canniest businessmen bought debt-ridden 'Le Monde' at such a difficult time in the industry, asks RUADHÁN MAC CORMAICin Paris
ONE IS a punk rock-loving banker who attended one of France’s elite finishing schools. The second is a long-haired telecoms billionaire who shunned university and began his career running sex shops. And the third is a 79-year-old former partner of Yves Saint Laurent who once moved in the same circles as Jean-Paul Sartre.
At first glance, the divergent backgrounds of Matthieu Pigasse, Xavier Niel and Pierre Bergé – whose joint €110 million bid for Le Mondewas approved by the paper's board this week – sound more like a recipe for an awkward Parisian dinner party than the basis for an alliance that is set to become one of the most influential in French public life. While they are already well-known figures in French business circles, taking possession of France's flagship paper will bring intense public scrutiny for the triumvirate.
Mr Pigasse's route to Le Mondeis perhaps the easiest to map. The 42-year-old, who runs the investment bank Lazard in France, already has a burgeoning media portfolio that includes Les Inrockuptibles, a cultural magazine that the music-loving banker bought last year and is transforming into a general interest news weekly. Mr Pigasse grew up in a Parisian suburb and graduated from the prestigious École Nationale d'Administration before taking a job as an aide in the finance ministry to the Socialist politician and current head of the International Monetary Fund Dominique Strauss-Kahn. An interest in the press runs in the Pigasse family. His father ran a weekly paper in Normandy and his brother edits a celebrity magazine called Public.
Known for his charm and tireless workrate, the ambitious banker belongs to a circle of business leaders active in French left-wing politics. Aside from his close ties to Mr Strauss-Kahn – considered a possible presidential candidate in 2012 – he was a founding member of the think-tank "Les Gracques", which aims to modernise the French Left. Some see his move for Le Mondeas an attempt to expand his influence into the heart of political life. The editor of Les Inrockuptibles,Bernard Zekri, however, said this week that while Mr Pigasse was very much present at the magazine, he never intervened on the editorial side.
If Mr Pigasse followed the classic path into the higher echelons of French business, Xavier Niel is something of an outsider. A self-made entrepreneur who started out at the age of 16, he is the owner of Iliad, a telecoms firm widely credited with having revolutionised the sector in France thanks to its record of innovation and a price-cutting zeal.
The firm recently claimed a major coup by winning France’s fourth mobile phone licence. A distinctive figure, with his long hair and open-necked shirts, Mr Niel (42) is also a controversial one within the Parisian elite. Barbs about his early business interests in sex shops and chatlines have grown louder in recent weeks, while in 2006 he was given a two-year suspended sentence for embezzlement. Mr Niel has fewer connections in political circles than either Mr Pigasse and Mr Bergé – indeed he revels in his maverick status – but he supports two left-leaning investigative websites that have been critical of the current centre-right government.
The Le Mondeconsortium is completed by Pierre Bergé, who co-founded the eponymous fashion house with Yves Saint Laurent – his partner for over 50 years – after they met in Paris in 1958. Having once mixed with writers such as Jean-Paul Sartre, Albert Camus and Jean Giono, Mr Bergé (79) is known as a generous patron of the arts. He also has a long-standing interest in the press. He founded the magazine Globein 1985 and and invested in Courrier Internationalmagazine when it was launched. A man of the left, he was a strong supporter of former Socialist president François Mitterrand and backed Ségolène Royal when she ran for president against Nicolas Sarkozy in 2007.
So why have three of France’s canniest businessmen bought a heavily-indebted company in such a difficult industry?
Some see it – and Mr Sarkozy may fear it – as an attempt to gain political influence, notwithstanding a guarantee of editorial independence.
Others suggest the ultimate trophy title will do wonders for its owners’ profiles. And then there are those who point to the detailed business plan. Perhaps they look at this widely-respected paper, its successful website and a history of erratic management and see potential.
"These investors are betting on journalism," said Libération's editorial yesterday. "They're right."