Bouygues Telecom Faces Becoming a Takeover Target Itself
Published on: 8th Apr 2014
Note -- this news article is more than a year old.
Having lost the battle to buy France's SFR, Bouygues Telecom could now face becoming a takeover target.
Although a subsidiary of the much larger Bouygues Group, the country's fourth and smallest mobile network, Iliad is reportedly mulling some sort of tie-up.
Bouygues had previously said that it would offer to sell its network infrastructure to Iliad's Free Mobile in order to secure regulatory approval for the SFR-Bouygues merger that never happened.
The French newspaper, Le Parisien reported that Iliad has offered EUR5 billion to buy Bouygues Telecom, although the parent company is said to be looking for EUR8 billion.
Both companies declined to comment.
A merger between Bouygues Telecom and Free Mobile would see the market, which has been hit by massive price competition, initiated by Free Mobile consolidate to three mobile networks.
It would also remove a useful source of funding for the Orange network, which offers national roaming to Free Mobile customers where the smaller network currently lacks coverage.