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Monday, October 6, 2014

CORRECTED-Euro Disney agrees to funding deal backed by Walt Disney, (NYSE: DIS)

Euro Disney said on Monday it had agreed a 1 billion euro funding deal backed by its largest shareholder, the Walt Disney Co, which includes a share sale and a debt restructuring, to allow it to invest in the business.Euro Disney, the entertainment resort based in an eastern suburb of Paris, is 40 percent owned by parent Walt Disney and 10 percent by the Saudi prince AlWaleed bin Talal.As part of the offer Walt Disney would be required to launch a tender offer on Euro Disney shares. Depending on how many people subscribe to the capital hike, the company said there was a very small chance that the listed entity be removed from the stock market.Euro Disney has struggled during the economic downturn and said on Monday that it believed a new financing package would allow it to invest in the business and boost visitor numbers.

The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company. Shares of DIS traded higher by 1.91% or $1.66/share to $88.45. In the past year, the shares have traded as low as $63.10 and as high as $91.20. On average, 5670880 shares of DIS exchange hands on a given day and today's volume is recorded at 7552990.