The Board of Directors has unanimously decided to refuse the offer to 10 billion euros of Altice, the parent company of the operator SFR, Numericable, to redeem Bouygues Telecom’s subsidiary.
Bouygues concerned that the time required for completion of the transaction, in particular on the authorities’ regulation, make running a business risk to its subsidiary Telecom as she “has a strong competitive advantage and sustainable through its frequencies portfolio and its 4G network.” Received by Emmanuel Macron while the Bouygues Board of Directors met, the president of Altice was asked an “assessment of the results and consequences of SFR treasury” by Numericable, last year, a-t -on said a source close to the minister.
The minister “reiterated the priority of the government and especially on employment, investment and the price level and reiterated its concern over what evoked synergies would mean in terms of employment, “it was added the same source. On leaving, Drahi had been pleased by a meeting between “two nice people.” “Investment We talked about France in telecommunications, employment, investments of French companies abroad, and then we will make a regular point if the case should move forward,” had indicated the founder of Altice .
On Monday the CEO of Numericable, SFR had tried to meet the objections raised by Mr. Macron on Sunday and then reaffirmed by Prime Minister Manuel Valls, ensuring that this project was “to the investment income and consumer “.
” The meeting of our two networks will enable us to give a boost to investment in high-speed fixed and mobile broadband throughout the country, “explained Eric Denoyer, recalling the commitments Employment taken on redemption of SFR and ensuring that they were “fully respected”.
No new upheaval for the sector
This is not the first time that this operator is the subject of an offer from its competitors but all have been rejected by Martin Bouygues far. “You would sell your wife, do you?” he replied, in this regard, presenting the results of the group in February. Consolidation in the sector, however, was considered beneficial by most analysts.
The rating agency Moody’s estimated that such an operation and had the “sense in terms of strategy” for SFR and Numericable-” offr (have) the opportunity to achieve significant cost reductions in terms of duplication and organizational structure. “
Among the professionals, the virtual operators (MVNO), which do not have own network, reacted after the announcement, in order not to be left out, as the Iliad, the parent of Free, indicated for its part be entered “exclusive negotiations” with Numericable, SFR to recover some frequencies, antennas and of Bouygues Telecom stores
success of the operation.
Given the risk of job cuts, a solution could be the involvement of Orange in the operation, according to brokerage Nomura, which recalled a Earlier in the day, the group plans 5,000 retirements per year in France in the medium term, it could have been partly offset by taking employees of Bouygues Telecom. Offering Altice would have led to a new upheaval of the landscape of French telecoms and especially that of mobile telephony. The sector was shaken in January 2012 from three to four operators with the arrival of Free, who had launched a fierce price war and hackneyed cards in terms of market share.
In March 2014 Patrick Drahi – virtually unknown at the time – was in turn hit the headlines by seizing SFR, Vivendi acquired, following a long battle against Bouygues Telecom …
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