Tuesday, June 23, 2015

Bouygues Telecom: the government sets the conditions for its … – The World

Bouygues Telecom, unsuccessful candidate for the acquisition of SFR, had initiated discussions with the market leader.

The government does not want negotiations on the acquisition of Bouygues Telecom, SFR with Numericable happen without him, and informed. Monday, June 22, Manuel Valls posed five conditions for the executive to support a possible merger between the two operators. Preservation of employment, investment, sale of frequencies, innovation and quality of service

visiting a company in the Val-d’Oise, the Premier said that “any operation that does not meet these major challenges can not have government support” .

“Our priorities for the telecom sector are clear: it is employment, which must be preserved and developed; investment (…) because we must cover the entire area with the deployment of fiber, 3G throughout the country by the end of 2016; the sale of 4G frequencies to develop; innovation because we must invest in the future and obviously the quality of service for the consumer “.

” undesirable Consolidation “

The company Numericable, SFR, owned by Altice Group Patrick Drahi, confirmed Monday it had filed a tender offer Bouygues Telecom. If it is successful, the company plans to sell some assets to Iliad, owner operator Free. The offer is interesting for Martin Bouygues, since the addition could reach 11 billion euros, according to sources close to the case.

The French Government had already shown its concern, Sunday, June 21 by the voice of the Minister of Economy, Emmanuel Macron, who said he was not in favor of such consolidation because of the risks it poses to jobs and investment.

“The consolidation today is not desirable for the sector. The employment, investment and the best service to consumers are priorities. But the consequences of consolidation are these negative ways, as demonstrated recent cases in Europe. “

Concerns which echo those expressed by consumer groups: ” The move from four to three operators always result in higher prices, “, told Cédric Musso, UFC-Que Choisir. The unions of the two operators have also warned against the consequences on employment, due to “duplicate shovel” in the workforce of both groups.



Meetings scheduled Tuesday

Bouygues has confirmed his side have received a group Altice ” unsolicited offer entry into negotiations for the sale of Bouygues Telecom “ plans to convene its board on Tuesday to discuss. The same day, Patrick Drahi must be received by the Minister of Economy, Emmanuel Macron.

The man Franco-Israeli businessman, head of a media empire and telecommunications particularly in France, including publications L’Express and release , had already succeeded in March 2014 to take over SFR after a long battle with Bouygues Telecom by buying the Vivendi to 13.36 billion euros. His offer on-Numericable SFR Bouygues propel to the forefront of mobile telephony in France before the incumbent operator Orange.

The Finance Minister Michel Sapin, has been also been very reluctant on financial arrangement of the operation, which could be achieved through a loan from BNP Paribas. “We must be careful not to found an empire on the sands of debt” , he warned. In its frenzy of acquisitions, Patrick Drahi has indeed accumulated a debt of € 33 billion to date.

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