France Telecom has expressed interest in Alcatel-Lucent’s subsea cable unit, CEO Stephane Richard has confirmed.
Richard told reporters that France Telecom would consider acquiring Alcatel-Lucent Submarine Networks (ASN) from its telecoms equipment…
France Telecom has expressed interest in Alcatel-Lucent’s subsea cable unit, CEO Stephane Richard has confirmed.
Richard told reporters that France Telecom would consider acquiring Alcatel-Lucent Submarine Networks (ASN) from its telecoms equipment manufacturer parent, currently working to reduce cash burn and debt.
The Paris-based telco has not gone beyond an expression of interest “in principle” at present, Richard was quoted as saying, adding that the company has been looking at how its own subsea cable business, France Telecom Marine, could work more closely with ASN for several months.
According to a recent Bloomberg report, French sovereign wealth fund, FSI, and investment funds PAI Partners and Permira Advisers are also considering bids.
In late December, French newspaper Les Echos reported that the French government is trying to coordinate a deal that would see France Telecom – in which it and FSI have a 26% stake – acquire at least part of ASN. According to the report, the government is also looking into FSI acquiring a stake in the asset.
Alcatel-Lucent, FSI, PAI and Permira have all declined to comment on the matter.
Earlier this month, French paper L’Agefi reported that FSI is one of several parties eyeing ASN, saying the sale could fetch €600m to €700m.
Alcatel-Lucent announced in mid-December that it had secured €1.615bn in financing underwritten by Credit Suisse and Goldman Sachs. Proceeds are to be used to improve the company’s debt maturity profile and help it achieve “performance programme” priorities, which include cutting costs and exiting or restructuring unprofitable contracts and markets.
