Private equity firms CVC Capital Partners and Providence Equity Partners are holding preliminary talks over a potential merger between the two Swiss mobile operators Orange Switzerland and Sunrise, a person close to the situation claimed, speaking to…
Private equity firms CVC Capital Partners and Providence Equity Partners are holding preliminary talks over a potential merger between the two Swiss mobile operators Orange Switzerland and Sunrise, a person close to the situation claimed, speaking to TelecomFinance.
The person said that there is no deal in place between the two PE firms, but that talks are going on about a potential merger. This would be in the event that Providence wins the bidding process for Orange Switzerland.
CVC Capital Partners acquired Sunrise for SFr3.3bn in 2010.
Providence is reportedly one of the bidders for Orange Switzerland, which is being sold by France Telecom. The French incumbent plans to sell the unit for between €1.5bn and €2bn by the end of the year.
The Financial Times reported that CVC has also allowed the group of banks that financed its takeover of Sunrise to work with Providence on its bid for Orange.
Meanwhile, France Telecom has reportedly prepared Credit Suisse, JP Morgan and HSBC to provide a financing package that is 4.25x Orange Switzerland’s earnings for all potential bidders.
The FT reported that the potential role of CVC outside the sale process had been a source of worry for France Telecom.
According to the report, the deadline for bids for Orange Switzerland is 12 December.
France Telecom’s CFO reportedly said recently that there have been 11 expressions of interests in Orange Switzerland.
CVC declined to comment. Providence was not immediately available for comment.