SFR In Talks To Buy Some Tele2 French Operations - Source

PARIS -(Dow Jones)- Vivendi's mobile phone subsidiary SFR is in exclusive talks to acquire the French fixed-line telephone business of Sweden's Tele2, a person familiar with the discussions told Dow Jones Newswires Wednesday.

According to a report in the French financial newsmagazine Challenges, the striking price could exceed EUR320 million, but the person couldn't confirm that.

The assets under discussion are Tele2's ADSL broadband and low-cost fixed-line telephone businesses, the source said, adding that Tele2's mobile phone operations aren't concerned.

If concluded, the acquisition would allow SFR to roll out an ADSL service to its customers and compete with local rival Orange, which is planning to launch mobile, broadband and fixed-line packages to its customers in the autumn.

SFR Chief Executive Frank Esser had indicated May that he wanted SFR to launch a fixed-line service to customers by the end of the year.

-By David Pearson, Dow Jones Newswires; +33140171740, david.pearson@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 30th August 2006