France Telecom could reportedly allow CVC to participate in bids for its Swiss unit, despite doubts about whether the PE firm would be able to conduct due diligence.
Plans by FT to merge Orange Switzerland with rival Sunrise were blocked by regulators…
France Telecom could reportedly allow CVC to participate in bids for its Swiss unit, despite doubts about whether the PE firm would be able to conduct due diligence.
Plans by FT to merge Orange Switzerland with rival Sunrise were blocked by regulators last year over competition concerns, and CVC later bought the latter for US$3.3bn.
But CVC is likely one of 12 potential bidders that have been sent details about the sale, along with Apax, Bain, TPG, EQT, Carlyle, Advent and Providence, reported the FT citing sources.
This is in spite of banker concerns that CVC could deter other bidders because of potential synergies that could be created through a later merger with Sunrise, added the report.
CVC and FT declined to comment.
As previously reported by TelecomFinance, the majority of interest in the Swiss unit is coming from PE firms, although there are also strategic players involved in the process.
First round bids are expected this month, with a sale for around E1.5bn likely to be secured before the end of the year.
FT announced plans to sell Orange Switzerland on 28 July as part of a review of European assets, with Lazard and Perella Weinberg Partners advising on the Swiss sale.
In addition, FT intends to sell minority stakes in assets in which it does not exercise an operational role.
It currently holds a 35% stake in Austrian mobile operator Orange Austria and a 20% stake in Portugal’s Sonaecom, which owns Portuguese mobile operator Optimus.