Orange interested in consolidating the telecoms market

by bold-lichterman

Via a press release, Orange formalized its interest in consolidating the market. This announcement comes in response to information from Echoes according to which the incumbent operator has entered into discussions with the Bouygues group with a view to the acquisition of its subsidiary Bouygues Telecom.

According to our colleagues, a merger could allow Bouygues to increase to 10% of Orange’s capital, a part in cash would complement the agreement. In this hypothesis, the valuation of Bouygues Telecom would be 6 billion euros while the Bouygues group expects 8 billion.

For its part, Orange specifies that it will act in the sole interest of its shareholders, its employees and its customers and will be particularly attentive to the creation of value and the legal risks of a possible transaction, while recalling that its position as leader allows him complete independence.

The CFE CGC union, for its part, challenged Prime Minister Manuel Valls on the meaning that a merger of the two companies could have. “Bringing together Bouygues and Orange would not only save jobs immediately threatened at Bouygues Telecom, but would also make sense in terms of industrial synergy. “

“The support of a construction group to deploy its fiber network would enable Orange to accelerate and meet its commitments to cover the territory at very high speed more quickly. “

“If Bouygues becomes the benchmark shareholder of the incumbent operator, it will also finally be possible, by joining the forces of employee shareholding, to find a corporate strategy geared towards the development of the activity, rather than by the payment of an abusive dividend, still demanded by the majority shareholder of Orange (the State’s editor’s note), which today undermines the economic dynamism of the company. “

This merger would also be the opportunity for Orange to beat the pawn of Iliad, which could get its hands on part of the Bouygues Telecom network.