Bouygues Raises Offer for SFR
Published on: 20th Mar 2014
By: Ian Mansfield
France's Bouygues has again raised its offer to buy rival mobile network SFR even though SFR's parent is in exclusive talks with Numericable.
Vivendi has agreed to enter into exclusive talks with Numericable that might lead to a sale of SFR to the nationwide cable operator, but it could still entertain other bids, even if it cant discuss them during the exclusivity period.
When Vivendi decided to talk to Numericable, its decision to drop Bouygues was reportedly due to the cash value offered.
As a result, Bouygues is proposing to Vivendi to improve the cash part of its offer by EUR1.85 billion, bringing it to EUR13.15 billion (USD18.1 billion), in addition to 21.5% of the new entity.
It noted that the cash part of this offer is EUR1.4 billion higher than the rival offer which is currently being negotiated with Vivendi. The new offer, if accepted, would give Bouygues a 67 percent stake in SFR, with Vivendi and a number of smaller shareholders taking the rest, ahead of a swift stock market listing.
Due to the exclusivity agreement, it is not expected that Vivendi will comment on the offer other than its comment to confirm that it has received the higher bid.