Such an operation could cost between 10 and 13 billion euros according to BFM Business.
The telecoms war is not limited to competition between Free and its competitors. And the battle seems to be starting again. While Numericable and SFR had already considered a possible merger in 2012, the rumors had resumed a few days ago.
Today, the main shareholder of the cable operator would like to afford the brand with the red logo and would raise the necessary funds, according to BFM Business information which mentions a required amount of between 10 and 13 billion euros for such an acquisition. If 3 billion euros would be financed by equity, the remaining amount could be financed by debt, according to BFM Business, in particular via an LBO (leverage buy out, editor’s note), an acquisition transaction financed by debt borne by the acquired company.
Such a mechanism would allow Numericable to avoid increasing its own debt again and seduce Vincent Bolloré, majority shareholder of Vivendi, the mayor of SFR, who had rejected the idea of a merger between the two companies.