Numericable Under Pressure to Raise Takeover Offer for SFR
Published on: 25th Mar 2014
Note -- this news article is more than a year old.
The increased offer from Bouygues Telecom to buy rival mobile network SFR could see its rival bidder, Altice's Numericable have to raise its own bid.
Vivendi, which owns SFR and is in exclusive talks with Numericable is reported to be pressuring the company to raise its offer to closer to that offered by Bouygues.
Although Vivendi is said to still favour the deal with Numericable as they think it will be an easier sale to secure regulatory approval, it wants to also take advantage of the pressure that is implicit in the higher rival bid.
Citing unnamed sources, Bloomberg News reported that Altice is discussing a higher offer, although no decision has been taken yet.
Altice is currently offering EUR11.75 billion in case and a 32 percent stake in the merged company. Bouygues recently raised its offer to EUR13.15 billion, and a 21.5 percent take in its merged mobile network.
Vivendi is evaluating cash proceeds as well as criteria including regulatory risks, implications for jobs as well as liquidity of the stake in the enlarged SFR it will retain, the people said.
Vivendi has another two weeks left in its exclusive negotiations with Numericable, after which if a deal is not agreed, it can again approach Bouygues.
On the web: Bloomberg News