Vivendi shares exclusively to Numericable on SFR purchase, hit to Bouygues Montebourg
German advertising company Vivendi has selected wire group Numericable whilst the favorite for the purchase of its telecom unit SFR.
Your decision is just a blow to conglomerate Bouygues, which had also bid for SFR.
Numericable and Vivendi may today carry three months of exclusive negotiations.
Their decision upset France’s industry minister Arnaud Montebourg that has openly sided with Bouygues.
He explained before Vivendi’s decision was announced: “This presents numerous issues. Firstly, since Numericable is just a small company compared to SFR. It’s a five billion euro business that will be funding 10 billion to purchase a business bigger than it is.”
Montebourg supported Bouygues’ bid to calm what he called “destructive competition” that’s forced cell phone company costs down 20-percent previously 2 yrs.
A deal between Vivendi Bouygues would have slice the quantity of French mobile operators from four to three, but would have faced competition regulator problems.
That might have slowed up a Vivendi’s and purchase panel made the option that was prone to help it to leave the cut throat telecom market as quickly as you are able to.
Vivendi has seen profits drop at SFR because the price war in France trigged by the appearance of low cost newcomer Iliad’s Free assistance in 2012.