(Boursier.com) – Coup de théâtre! Scheduled Redemption Bouygues Telecom by Orange will not happen … The two groups met on Friday evening their respective boards of directors, and announced that in stride they will prolong their discussions, which lasted for three months yet …
Confirming press rumors published earlier, Orange said in a press release that “after detailed discussions, the Board of Directors of Orange found an agreement for a merger with Bouygues Telecom could not be found. It was therefore decided to end the discussions held on 5 January Orange and Bouygues, “continued the telecom operator.
Bouygues announced that he now prefers that its subsidiary is independent
Meanwhile, Bouygues said in a statement that its board “has unanimously decided to end the negotiations. in a market where the assumption of consolidation is now permanently excluded, Bouygues Telecom will continue its strategy” stand alone “that allowed already a return to the growth in revenue and EBITDA in 2015,” the group added.
negotiations between Orange, the State ( shareholder of Orange 23%), and Bouygues had hardened in recent days, especially on the valuation of Bouygues Telecom, for which Martin Bouygues demanded 10 billion euros, while the subsidiary is recorded in 6 MDSE the balance sheet of its parent. Bouygues wanted in connection with this operation go to the Orange capital up to 10% to 15% and be represented on its board.
Meanwhile, Orange and the state did not want not offer shares to Bouygues sacrificed prices. According to ‘Le Figaro’ and ‘Les Echos’, who said Friday the expected failure of talks before the official announcement, it is especially Economy Minister Emmanuel Macron, who would not make concessions on the valuation Orange shares, as well as on the governance of the telecom operator.
Three requirements Bercy unacceptable to Martin Bouygues?
the ‘Figaro’ stated that Emmanuel Macron and Martin Vial, the head of the Agency for state participation (EPA), have expressed three unacceptable demands by Martin Bouygues. They thus conditioning the entry of Bouygues in the capital of Orange at a floor price of 18.5 euros per share while the parties were negotiating until then to 17 euros (the share price was 15.40 euros on the stock exchange Friday). By increasing the price of Orange, Emmanuel Macron has automatically reduced the value of Bouygues over 10%
Two other clauses have been rejected by Martin Bouygues, the newspaper said. Ban for 7 Bouygues years to climb to the Orange capital, and a freeze on double voting rights for 10 years.
earlier in the day Friday, the CEO of Orange, Stéphane Richard, s ‘was shown, however optimistic, claiming to’ Reuters’ that “there is no stumbling block in particular, we can not say that this negotiation stumbles on some aspect.”
on Thursday morning deadline set for reaching an agreement, the two groups had announced the extension of their discussions, which had worried the financial markets and pushed the course of telecom industry Stock Exchange on the Paris Bourse.
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