SFR makes EUR 7.5bn offer for Bouygues Telecom, discussions ongoingBouygues Telecom has been the subject of an offer of up to EUR 7.5bn from competing French telco SFR, according to the Journal du Dimanche.The French-language weekly newspaper quoted sources it did not identify as saying that while that offer was spurned, SFR could up the ante next year and offer as much as EUR 8bn.One source close to the bidder camp told the JDD that talks were not over and the issue of pricing remained key. Other sources mooted the likelihood that a better offer might come about within a matter of months.The information came in the context of expected consolidation within the French telecoms space. Further key factors, according to the JDD, include any plans by Xavier Niel, another high-profile French entrepreneur. According to sources, the founder of Free is content participating in a four-player market. And another element is the planned auction over the next few months of 700 MHz frequencies by the French government. The JDD quoted regulator Sebastien Soriano who said that activity will clearly separate out long-term from short-term players.As reported by this news service last week, Bouygues Telecom parent boss Martin Bouygues said that despite recent declarations from Altice’s (ATC:AMS) Chief Executive Dexter Goei saying his company would be the most natural buyer for Bouygues Telecom, there were no discussions at all. Altice subsidiary Numericable already paid EUR 3.9bn to acquire SFR from Vivendi.Bouygues said on that occasion when the dust settles after the telecom wars of the last few years, Bouygues would be best placed to buy one of the French operators, be it Iliad’s (EPA:ILD) Free, Numericable-SFR (EPA:NUM) or Orange (ORA:FP). That is because of its low level of indebtedness which has fallen to EUR 3.2bn in 2014 against EUR 4.435bn in 2013.Journal du Dimanche
