Le Monde | • Updated | By
Martin Bouygues has failed to keep its promise. The boss of the eponymous group was assured that negotiations for the acquisition of its mobile subsidiary, Bouygues Telecom, Orange, find their epilogue “at the end of the first quarter,” . Alas, in the aftermath of two boards, the two operators have published Thursday 31 March, a statement specifying that the “discussions were not sufficiently advanced” . Both operators will convene a new board by Sunday, April 3, thus setting a new deadline
Read also:. Martin Bouygues wants 15% stake in Orange
many questions remain unanswered. Thursday morning, Stéphane Richard was again meet Martin Bouygues. Main problem: the valuation of the transaction. Indeed, Martin Bouygues, who set at 10 billion euros the price of Bouygues Telecom, made it a condition for the sale of its mobile subsidiary entered the capital of the incumbent. The transaction must be settled in securities and cash.
Martin Bouygues wants to acquire 15% of Orange’s capital. Since the start, this ambition seems too high for the state. Currently holds 23% of the capital of Orange, the State wishes to remain a shareholder with at least 20% or 21% of capital. The armed wing of the State Agency of interests of the state, supported by Emmanuel Macron, is prepared to give 12% stake in Bouygues
Read also:. Fusion Orange and Bouygues Telecom aim profitability
But not at any price. Officials Bercy wish to enhance Orange as dearly as possible, and Bouygues Telecom as low as possible, which would decrease the de facto cash in hand paid to Bouygues. They would also impose a clause of “standtill” (blocking clause), preventing Martin Bouygues to climb to the capital in the coming years, all secured in a shareholders’ agreement. These points are still under discussion.
The Minister of Economy, which preserves mixed memories of the role of the businessman when he was director of Alstom, is anxious to show it defends the interests of the state shareholder and that it “not a gift to Martin Bouygues’ . A position deemed political by some. Own to Emmanuel Macron, this vision is not, it seems, not shared by Manuel Valls, Hollande, who would have been more favorable to the operation.
A deal of rare complexity
Stéphane Richard, who saw the president recently, would continue to play its relationship to the Elysee to tip the balance of his side, namely to make concessions Martin Bouygues for the operation to succeed. One year before the presidential election, operators agitate the prospect of a new social plan in telecoms, if consolidation did not result. Indeed, even if Bouygues Telecom’s better, the situation remains fragile
Other difficult subject. The risk that the parties should take if the operation were to fail after consideration by the ‘competition Authority. It must be said that the “deal” is unusually complex. To buy Bouygues Telecom, Orange must first surrender part of the assets of the operator SFR and Free, (founded by Xavier Niel, individual shareholder of the World), in order not grow disproportionately. SFR is supposed to redeem clients, particularly Byou, low cost subscribers of the operator and enterprise customers. All for about 3.5 billion euros, if the final valuation of Bouygues Telecom does not change.
Meanwhile, Free, which would spend 2.5 billion euros, s ‘mainly interested in radio frequencies and the mobile network operator. These assets enable it to strengthen its own infrastructure, it began to build there only four years.
The Competition Authority may challenge this dividing line and impose new “cures” that is to say, counterparties, pushing the emergence of a new operator, via the arrival of a MVNO (an operator without its own network). A new kind of market configuration to question the value of the transaction or even prompt some players like Orange, to back down. “Who will bear the risk on the shoulders if in fourteen months, the operation is not done? “, asks a close to the discussions.
” Anything can still move “
Even among operators, the problems are far from be solved. Reportedly, the “requirements” Xavier Niel begin to cringe Orange. The contractor would get “advantages on network implementation” , a source said without specifying. The issue of “homelessness” , which allows Free to use the Orange network until hers is fully built, still there is no consensus. Xavier Niel would indeed extend his contract beyond 2018, the end of his current agreement, pending access to Bouygues Telecom network
Read also.: the grand bargain began around butchering Bouygues Telecom
Another concern: the question of Bouygues Telecom stores are not set. The troublemaker Telecom had agreed to take 300 phone owned stores name by its competitor. “Anything can still move,” says a trader . The operator he turns away permanently? “ There are no candidates for the resumption of shops, not even Free” provides the same source. In fact, for Free, used to market its mainly deals online resume stores would be a major concession. Initially, the operator intended to be limited to “some stores” to complete the additional 49 feet of door he had in late December. “There is no point blocking, just not accomplished discussions” , moderates a source.
The prospect of the Free fixed costs to rise n ‘ enchants little Parisian analysts. “For Free, the operation of the interest lies in the time value. The resumption of the network and frequencies could make them win two years. But he wins one hand, it would lose the part of the other with shops », said Jacques de Greling, analyst at Natixis.
The issue of 7500 employees of Bouygues Telecom’s Central finally, governments have demanded that the consolidation is done “ without social destruction .” Previously, Orange was supposed to take 4,500 people, SFR and Free 1000 2000.
No comments:
Post a Comment