France Telecom CEO Stephane Richard has said an acquisition of Vivendi’s controlling stake in Maroc Telecom could be strategically interesting, while confirming the company continues to seek out growth opportunities in Africa and the Middle East.
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France Telecom CEO Stephane Richard has said an acquisition of Vivendi’s controlling stake in Maroc Telecom could be strategically interesting, while confirming the company continues to seek out growth opportunities in Africa and the Middle East.
In an interview with French newspaper Le Figaro, Richard declined to be drawn on if or when the company might make a bid for Morocco’s largest telco, in which French media and telecoms giant Vivendi owns a 53% stake, or how much it might offer.
Richard said that with a debt load of €30bn and market price of about €8 per share, France Telecom has limited funds for acquisitions. However, he added that this doesn’t prevent the company from looking into how it can take advantage of opportunities.
Asked about France Telecom’s discussions with Deutsche Telekom, Richard said the German incumbent is the operator to whom it is closest. He dismissed persistent rumours of a merger, saying it would not bring about many more benefits than the companies get from their current partnerships. The operators jointly own mobile operator EE in the UK, share a network in Poland and have a purchase agreement which Richard said is expected to save hundreds of millions of euros a year from 2013.
He said France Telecom’s strategic focus at present is to invest in its networks and innovation and look for growth opportunities in Africa and the Middle East, saying the regions contribute to 5% of the group’s annual growth.
Asked whether he and his team are in talks with Mexican billionaire Carlos Slim, Richard said he and the America Movil (AMX) chairman have a long-standing and trusting relationship. He noted that Slim is in an advantageous position given AMX’ considerable funds.
Richard ruled out a merger with one of the other three French operators, saying competition legislation would not allow it. He commented that the fragmented nature of the European telecoms sector impedes consolidation and, consequently, investment opportunities.
Late last month, Qatar Telecom (Qtel) confirmed it is interested in acquiring Vivendi’s Maroc Telecom stake.
