French conglomerate Bouygues has extended its offer for Vivendi’s mobile operator SFR by more than two weeks to 25 April. It previously said its offer would remain valid until 8 April – only four days after exclusive sale talks with Altice…
French conglomerate Bouygues has extended its offer for Vivendi’s mobile operator SFR by more than two weeks to 25 April. It previously said its offer would remain valid until 8 April – only four days after exclusive sale talks with Altice expire.
“In doing so, Bouygues wishes to allow Vivendi the time to examine its offer in a calm and detailed manner, and to proceed with all the necessary discussions that such an important operation requires,” it said in a statement today.
On 20 March, Bouygues sweetened its initial bid for SFR by €1.85bn to €13.15bn. The improved offer was made shortly after Vivendi had granted Altice a period of exclusive negotiations until 4 April.
Although a spokesperson for SFR’s parent reiterated that those discussions with Altice continue for another few days, reports suggested last week that a Vivendi ad hoc committee would also examine the improved counter offer.
It emerged recently that Bouygues is also considering further improving its offer to provide Vivendi with a full exit from a merged Bouygues Telecom-SFR.
Under Bouygues’ latest offer, Vivendi would receive €13.15bn in cash and a 21.5% stake in the combined mobile operator. Altice’s proposal would give the conglomerate €11.75bn in cash and a 32% stake in the resulting merger of cableco Numericable and SFR.
Hoping to further convince that its offer is the best, Bouygues said today it has added a €500m break-up fee, payable if French regulatory authorities blocked the deal.
Bouygues has already agreed to sell its network to Free Mobile for €1.8bn in case of a deal with SFR, in order to alleviate regulatory concerns.
The regulatory review of a merger between SFR and Bouygues Tel is expected to be more complicated than a transaction with Altice given the significant antitrust implications of a horizontal deal, compared to a combination with Numericable, which is a less direct competitor.