Wireless players SFR and Bouygues Telecom are reportedly both planning to make an offer for local MVNO Virgin Mobile, which has around 1.7 million customers.
The French market is experiencing a shake-up since Vivendi agreed to sell SFR to cableco…
Wireless players SFR and Bouygues Telecom are reportedly both planning to make an offer for local MVNO Virgin Mobile, which has around 1.7 million customers.
The French market is experiencing a shake-up since Vivendi agreed to sell SFR to cableco Numericable to create a strong converged operator.
Bouygues Tel, the defeated bidder in the SFR race, is seeking ways to remain competitive. Buying Virgin Mobile, which is estimated to be worth up to €300m (US$417.7m), would allow it to keep its head above water, according to newspaper Les Echos.
As for SFR, which already provides services to 70% of Virgin’s customers, a deal would enable it to fully integrate this subscriber base.
Incumbent Orange and latest entrant Free Mobile are remaining discreet about their plans, Les Echos wrote.
Virgin Mobile, which is advised by DC Advisory, is hoping to get offers as early as 15 May, according to the report.
But the MVNO’s owners – UK phone retailer Carephone Warehouse (46%), Virgin Group (46%) and management (8%) – are also exploring other options.
An IPO is reportedly being studied as well as a merger with another virtual network operator, Coriolis.
And the Virgin Group might decide to stay invested in the business.
The companies declined to comment on the report.
