Vivendi Gets OK to Buy Dreyfus Neuf Cegetel Shares

PARIS -(Dow Jones)- French entertainment-to-telecom conglomerate Vivendi and its mobile phone unit SFR said Tuesday they have received permission from the government to purchase the Louis Dreyfus Group's stake in French telecom group Neuf Cegetel.

As a result, SFR, which is co-owned by Vivendi and Vodafone Group, bought Tuesday the Louis Dreyfus Group's 28.45% stake in Neuf Cegetel at EUR34.50 a share and now has a 68.13% share of Neuf Cegetel's capital, Vivendi and SFR said.

SFR outlined a EUR4.4 billion deal to buy Neuf Cegetel in December.

SFR and Vivendi added that in the next few days SFR will file for a public offering at EUR36.50 a share for the remaining shares that it doesn't currently own, to be followed by a so-called "public withdrawal offer" that will give it full control of the company.

Vivendi and SFR noted that the price of SFR's offer for Neuf Cegetel will be adjusted to EUR35.90 as a result of a EUR0.60 dividend to be paid May 2.

The takeover of Neuf Cegetel will create an integrated telecommunications provider which could rival the French telecoms giant France Telecom.

-By William Horobin, Dow Jones Newswires; +33 1 4017 1740; william.horobin@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 15th April 2008