Generale Occidentale
| Company type | Private |
|---|---|
| Industry | Investment |
| Founded | 1969 |
| Founder | James Goldsmith |
| Fate | Incorporated into Havas S.A. |
| Headquarters | France |
Key people | James Goldsmith (founder), Alexis De Gunzeberg (co-founder) |
| Products | Investments in food, publishing, oil exploration, media |
| Parent | Alcatel Alsthom S.A. (later), Havas S.A. (after 1995) |
Générale Occidentale was a French investment company established in 1969 by the Anglo-French entrepreneur James Goldsmith. It eventually evolved into the media division of Alcatel Alsthom S.A. before being incorporated into Havas S.A.
Formation and Expansion
Towards the end of 1967, James Goldsmith and his cousin Alexis De Gunzeberg acquired a 45% interest in the French property and investment company Union de Transports et de Participations for £300,000 from the collapsed Union Financiere de Paris. The company was renamed Union de Participations (UdP), through which they consolidated an 80% stake in the French nutritional firm Gustin-Milical—already holding 15% of British company Cavenham Foods shares—into UdP, generating a notional gain of 70%. In October 1968, UdP took over the French banking and property group Societe Generale Fonciere, renaming it Societe Generale Occidentale, and transferred their Cavenham holdings into UdP.
In 1969, UdP, operating as Générale Occidentale, acquired a 60% share in the publicly traded French company Financiere et Industrielle de Petrole et de Pharmacie (FFIP), integrating Gustin-Milical's chemical and pharmaceutical assets within FFIP. By February 1970, Cavenham Foods temporarily suspended trading on the London Stock Exchange to restructure and pursue growth; its share price had climbed from 4s6d in 1967 to 15 shillings. Cavenham purchased FFIP's stake from UdP via a cash-and-share agreement, followed by Swiss firm Conwood SA, regaining control over confectionery and tobacco operations. The acquisition of French manufacturer Gremy-Longuet, producer of Synthol, also occurred during this period. Goldsmith and de Gunzeberg controlled between 70% and 75% of Cavenham shares through UdP, which was subsequently renamed Générale Occidentale to serve as the holding entity for Goldsmith’s assets.
In April 1972, Cavenham obtained a 7.5% interest in French food conglomerate Generale Alimentaire for FR20.8 million; Générale Occidentale acquired an additional 11.2%. The Rothschild-associated Compagnie du Nord held a 25% stake. FFIP’s French operations were merged into Generale Alimentaire through a FR255.7 million transaction that issued shares to Cavenham. To comply with French ownership regulations, the subsidiary SEPA held a combined 54.18% of Generale Alimentaire shares—split as 49% by Cavenham and 51% by Générale Occidentale—thereby granting Cavenham operational control.
In May 1976, Goldsmith revealed plans for Cavenham to purchase the remaining 50.5% of Generale Alimentaire shares. This deal increased the combined holdings of Générale Occidentale and Anglo-Continental in Cavenham to over 51%, up from 39.5%, reinforcing Goldsmith’s dominance despite resistance from some institutional investors. The French government sanctioned the transaction due to the resulting ownership structure favoring French interests. Later that year, Alexis de Gunzeberg stepped down.
By January 1977, Générale Occidentale aimed to acquire the outstanding 49% of Cavenham shares to privatize the company at an offer price of 120p per share; this caused share prices to surge but attracted criticism over undervaluation and shareholder dissent. By March, Générale Occidentale retracted its bid amid valuation disputes; shares declined to 104p. Subsequently, Générale Alimentaire secured a 45% stake in French news magazine L’Express. In May, Générale Occidentale negotiated acquiring half of the remaining minority shares at 160p each; this oversubscribed offer reached an acceptance rate of 83%. The arrangement involved exchanging ordinary shares for preference shares that offered higher dividends but lacked voting rights—a transaction that was cash-neutral and funded through Cavenham’s earnings. By year-end, Cavenham had become a private entity under Générale Occidentale and was removed from the London Stock Exchange listing.
On January 6, 1978, Générale Occidentale declared its intention to purchase Generale Alimentaire from Cavenham to prevent double taxation on dividend payments.
In 1979, Générale Occidentale acquired Chocolat Poulain along with SEGMA (which included the Maille brand) from Clin-Midy. Following discussions with Gilberte Beaux, it invested £5 million in Basic Resources International, an oil exploration firm operating in Guatemala led by John D. Park. Earlier that year, Compagnie Générale d'Electricité (CGE) made a $14 million investment for a stake in Générale Occidentale.
In 1980, Générale Occidentale divested its food sector to Boussois-Souchon-Neuvesel (BSN), later known as Danone. Its subsidiary Cavenham sold off its Bovril division and exited food manufacturing by April 1981 to concentrate on its U.S.-based supermarket chain Grand Union under the Allied Suppliers banner. That year, Cavenham Holdings Inc., a subsidiary of Générale Occidentale, sought significant holdings in Diamond Corporation after accumulating approximately a 4% stake via pension funds and affiliates during 1979. Following boardroom conflicts throughout 1980, Goldsmith joined Diamond’s board; by early 1981 Générale Occidentale controlled a 25.9% interest. In October 1981, it sold Banque Occidentale pour l'Industrie et le Commerce to Crédit Lyonnais.
Cavenham was voluntarily liquidated in March 1986; shareholders received shares in Générale Occidentale as compensation. The group expanded its publishing activities by acquiring Presses de la Cité later that year. In February 1987, Générale Occidentale sold its majority holding (63%) in real estate firm Cogifi to Union des Assurances de Paris for FR490 million.
Goldsmith and Beaux Departure
In 1987, Goldsmith divested his 51% ownership in Trocadero Participations by selling it to the French conglomerate Compagnie Générale d'Électricité (CGE), which already possessed the remaining 49%, for $243 million. This transaction granted CGE a 34% interest in Generale Occidentale along with control over the company, including its investments in Grand Union supermarket, Basic Resources International (oil sector), and publishing entities such as Groupe Express (publisher of L'Express) and Presse de la Cité. Shortly after this acquisition, Gilberte Beaux stepped down from her role as managing director.
The following year, 1988, CGE initiated a strategic shift of Generale Occidentale towards concentrating on publishing by divesting Grand Union through a management buyout led by chairman and CEO Floyd Hall for £655 million. Subsequently, Generale Occidentale combined Presse de la Cité with CEP Communications, a division of Havas S.A., creating Groupe de la Cité, which emerged as France's second-largest publishing group after Hachette. In 1993, the company expanded its portfolio by acquiring an 82.5% controlling interest in publisher Sebdo, known for the magazine Le Point, from Gaumont.
By 1995, Generale Occidentale had secured a 34% shareholding in SOCEMIE, the parent company of the TV broadcaster Euronews. However, that May, its leader Francoise Sampermans became subject to an inquiry regarding alleged misuse of corporate funds related to personal security expenses. In October of the same year, Alcatel Alsthom S.A. swapped Generale Occidentale for a 21.2% equity stake in Havas S.A., resulting in the transfer of publications L'Express, Le Point, Courrier International, and Le Vif to Havas.