Patrick Drahi, CEO of Luxembourg-based investment fund Altice Group, has reportedly said that he will not raise his bid for Vivendi’s telecoms arm SFR, according to French newspaper Les Echos. The executive was cited as saying: ‘The offer I’ve made has been valid since 5 March. I have no reason to modify it.’
As previously reported by TeleGeography’s CommsUpdate, last week Vivendi received two bids for France’s second largest mobile provider in terms of subscribers, from domestic broadband operator Numericable, majority owned by Altice Group, and Bouygues Telecom; both suitors have valued SFR at around EUR19billion–EUR20 billion (USD26.08 billion–USD27.45 billion). Numericable has tabled a bid which consists of EUR11 billion in cash (comprising EUR8 billion in debt and EUR3 million via a capital increase) and 32% of the new merged entity. For its part, Bouygues Telecom’s proposal comprises EUR10.5 billion in cash and 46% of the share capital of the new entity. Further, Bouygues Telecom has promised to stage an initial public offering (IPO) for the new company ‘as soon as possible’, with Vivendi given the opportunity to sell an additional 15% stake in the enlarged company.