Bouygues Telecom does not want (and must not) remain isolated

by bold-lichterman

Bouygues Telecom could turn to Free or Orange so as not to lose face

While Vivendi’s supervisory board has chosen Altice – the parent company of Numericable – to sell SFR, Bouygues would feel somewhat isolated in the telecoms market. In the impossibility of being able to continue on its own – due to the massive investments required, the gross operating surplus falling to zero – and in a sector where the trend is towards market concentration, Bouygues Telecom could turn to Iliad, the group of Xavier Niel, to sell his network according to information circulating in the press.

Refusing to remain number 3 in the sector, the complementarities with Free could be substantial: Bouygues has a mobile network, Free a fixed network. The two groups had also planned – in the event of the takeover of SFR – an agreement to sell certain frequencies for 1.8 billion euros. Problem: the Xavier Niel would only be ready to pay 5 billion euros to afford the entire operator, where Bouygues would claim 8 billion. If, however, no information has been formally confirmed by one of the two parties, the newspaper Le Parisien – Today in France asserts that such discussions would take place.

The daily also specifies that Bouygues Telecom would have entered into discussions with Telefónica. The objective would be both to find a new partner in the event of failure of negotiations with Free, but also to raise the stakes with Iliad. The daily Les Echos specifies its side that a mutualization agreement with the Orange group would be considered.

[Mis à jour le 8.04.2014 à 9:44]