France’s Bouygues Telecom has “decided unanimously” to reject the €10bn takeover offer lodged by telecoms investor Altice via its local subsidiary Numericable-SFR, citing execution risk, strong growth predictions and potential job losses.
In…
France’s Bouygues Telecom has “decided unanimously” to reject the €10bn takeover offer lodged by telecoms investor Altice via its local subsidiary Numericable-SFR, citing execution risk, strong growth predictions and potential job losses.
In a statement following yesterday’s board meeting, conglomerate Bouygues said it “considers that the offer presents a significant execution risk, which should not be borne by Bouygues, particularly in terms of competition law in both the fixed and mobile markets,” adding that Altice had “not provided a fully satisfactory response” on possible competition concerns, or the impact on the country’s upcoming 700 MHz frequency auction.
The board said its telecoms subsidiary was thanks to its strong 4G network and spectrum “particularly well positioned” to benefit from upcoming “exponential development of digital uses”. In fixed-line, meanwhile, its fixed broadband and TV set top box offering was also strong, the company said.
Furthermore, the board believes Bouygues Telecom has the means to return to its 2011 EBITDA margin levels of 25%-plus by 2017
Finally, the board voiced concern about the impact of consolidation on employment and the “social risks inherent to such an operation,” reiterating its emphasis on creating long-term value with employees, suppliers and customers, as well as its commitment to investing in French infrastructure.
With the company continuing to rule itself out as the linchpin of French telecoms consolidation, advisers and rivals Orange, Numericable-SFR and Iliad will have to go back to the drawing board.
