TheChek News Flow

>>> What to look at today ( Week End +Today) - 07/04/2014

US Market closed lower - Nasdaq leaded the move (-2,60% lower), market opened on the highs and decline all day...Tech lower and Utilities Higher in a defensive move...Volume were above average with 764mil shares...VIX @ 13,96 +4,41%...Alcoa is reporting tomorrow after the close..JPM & C at the end of the week...World Bank cut its forecast for China GDP by a decimal to 7.6% in 2014 while also affirming its 2015 forecast at 7.5%, reflecting a "bumpy start to the year". Specifically, World Bank noted slowing growth rate of industrial production and contraction in exports, but also said it expects "quarterly growth to rise at midyear as external demand from the high-income countries solidifies." For the developing East Asia and Pacific (EAP) region, World Bank also cut its 2014 and 2015 targets to 7.1% from 7.2% previously expected....- In Japan, local press report assessed the early impact of higher sales tax, noting "car dealerships and department stores saw a noticeable drop in business the first weekend after the 5% consumption tax went up to 8%, but electronics retailers fared less badly than they had feared." Late last week, PM Abe's economic adviser Honda reiterated his support for BOJ to undertake additional easing, while a research report from SocGen forecasted BOJ would announce fresh measures at its Apr 30th meeting. Note that the BOJ will also make a policy announcement in tomorrow's session....Nikkei -1.78%...HS-0.72%...Shanghai+0.72%

Eur$ 1.3703 S&P Fut -0.20% European Fut: -0.79%

Macro

- Japan Econ Min Amari: PM Abe will tread carefully regarding further sales tax increases

- Hungarian Markets May Slump on Orban’s Election Win, SocGen Says

Keep an eye on :

- ATC NA : Altice, Numericable to Finance SFR Offer With Rights Offer, Debt E4,7b 0f Right Issue & E8,8bi if debt

- ANA SM : Acciona, Ferrovial Win EU630m Australia Road Deal: Economista

- AZA IM : JAlitalia-Etihad Deal May be Delayed by Cost Cut Requests: Sole, PMorgan Advising Etihad in Alitalia Talks, Il Sole 24 Ore Says

- STS IM : GE Still Considering Ansaldo STS Acquisition: Beccalli-Falco

- AZN LN : AstraZeneca Aims to Introduce 10 New Drugs by 2020: Handelsblatt

- BARC LN : Barclays Sells U.A.E. Retail Unit to Abu Dhabi Islamic Bank Buys Operations for $177 Million

- BSLN SW : Basilea Says Drug Candidate BAL101553 Shows Antitumor Activity

- EN FP : Bouygues Says It Submitted Cash Component of 15.5 Bln Euros

- BBVA SM : BBVA Sees Mexico Economic Rebound in Mid-2014: Reforma Link

- BG/ LN : BG Group Moves Global LNG, Oil Marketing Center to Singapore

- CABK SM : CaixaBank Buys 5% Stake in Co. That Controls FCC (Earlier)

- CGG FP : CGG Says Malcor's Term as CEO Renewed for Three Years

- CSGN VX : Credit Suisse Said Target of Civil Probe by NY’s Lawsky: NYT

- DAI GY : Daimler Shareholders Want to Limit CEO Zetsche’s Powers: FAZS

- DELB BB : Barron's +ve, good restructuring story and strong balance sheet, could be debt free by end of 2015

- DBK GY : Deutsche Bank Chairman Achleitner said to have given support to the current management of co-leaders

- DEX GY : Delticom : CEO: May double sales to €1B within 5 years if things continue to go well - German press

- EDF FP : France’s Royal Says Fessenheim Nuclear Plant to Shut by End-2016

- EVK GY : Evonik Prepared to Make Acquisitions, CFO Tells Boersenzeitung

- OGZD LI : Gazprom Will Keep German Agreements, Medvedev Tells Handelsblatt

- GSK LN : Glaxo Said to Be Investigating Iraq Bribery Accusations: WSJ

- HOF LN : Sports Direct’s Ashley Buys 11% Stake in House of Fraser, Sanpower to buy the 89% value yhe co at 450mil pnd

- HOLN VX/LG FP : Holcim-Lafarge Deal Would Get Scrutiny From Brussels to Brazil

- HOLN VX/LG FP : Holcim With Lafarge Said to Maintain Listings in Merger

- LEG GY : LEG Immobilien to Sell ~EU300m of Convertible Bonds

- MAERSKB DC : Maersk Line Cuts 12% of CO2 Emissions From Ships in 2013

- MEDAA SS : Meda may see Mylan increase offer Dagens Industri

- MKS LN : M&S Says U.K. Grocery Industry Seeing Seismic Change: Telegraph

- NESN VX: Nestle’s Brabeck Will Step Down as Chairman in 2017: Le Temps

- NOVN VX : Novartis’ Bexsero Vaccine Gets FDA Recommendation in U.S.

- NUM FP : Altice Says It Welcomes Vivendi’s Decision on SFR

- ORA FP : Orange CEO Wants Employee Shareholding to Rise to 10%: Figaro

- PHARM NA : Pharming Says ‘Unlikely’ FDA Won’t Clear Ruconest: De Telegraaf

- RNO FP : Nissan and Renault are firmly committed to Russia operations despite Crimea issue; tensions expcted to fade over time

- ROG VX : Roche to Work With Oryzon to Turn on Cancer-Supressing Genes

- SDF GY : K+S Says U.S. Salt Ops Offset Warm German Winter, FAZS Reports

- GLE FP : Societe Generale Seeks Organic Growth in Germany, CEO Tells WiWo

- GLE FP : SocGen Sees French Insurance Growth Prospects, Echos Says

- UCG IM : UniCredit’s Ghizzoni Says Fineco IPO to Take Place by July

- VIV FP : Vivendi Accepts Altice’s EU13.5 Billion Offer for SFR Phone Unit

- VOD LN : Vodafone Egypt Appeals Against Competition Authority: Al Borsa

>>> Brokers Upgrades & Downgrades - 07/04/2014

>>> Up

*CAIXABANK RAISED TO HOLD AT SANTANDER

*GROWTHPOINT PROPERTIES RAISED TO EQUALWEIGHT AT BARCLAYS

*SOLARWORLD RAISED TO BUY FROM SELL AT WARBURG, PT EU21 VS EU12

*TRYG RAISED TO NEUTRAL VS SELL AT GOLDMAN

*TRYG RAISED TO HOLD AT DNB MARKETS

*ZURICH INSURANCE ADDED TO CONVICTION BUY AT GOLDMAN

>>> Downgrade

*AEROPORTS DE PARIS CUT TO NEUTRAL VS BUY AT CITI

*ALLIANZ CUT FROM GOLDMAN'S CONVICTION BUY LIST, STILL A BUY

*BURBERRY CUT TO HOLD VS BUY AT BERENBERG

*OSRAM CUT TO HOLD VS BUY AT BERENBERG

*PIRELLI CUT TO NEUTRAL VS BUY AT UBS

*STATOIL CUT TO SELL VS NEUTRAL AT GOLDMAN

*ZUMTOBEL CUT TO HOLD VS BUY AT BERENBERG

*ZURICH AIRPORT CUT TO NEUTRAL VS BUY AT CITI

>>> PT Change

*OCEAN WILSONS PT RAISED 1,500P VS 1,400P AT CANTOR; KEPT AT BUY

>>> Initiation

*AO WORLD RATED NEW BUY AT JEFFERIES

*HELLENIC PETROLEUM RATED NEW NEUTRAL AT CITI, PT EU8

>>> Call

>> Stock

*ALLIANZ CUT FROM GOLDMAN'S CONVICTION BUY LIST, STILL A BUY

*MONDI REMOVED FROM EUROPE 1 LIST AT BOFAML

*ZURICH INSURANCE ADDED TO CONVICTION BUY AT GOLDMAN

(GS) Vivendi : Here comes the Sun : Streaming drives music industry growth

* What's changed

The music industry business model is evolving from ownership to access

given the proliferation of streaming services like Spotify and Pandora. We

see attractive structural growth prospects as music consumers continue to

migrate online, driven by: (1) a more attractive royalty structure for digital

music consumption when compared to terrestrial broadcast; (2) continued

strong growth of high-margin subscription services in developed markets;

(3) declining headwinds from physical formats with digital accounting for

half of global music sales and nearly two-thirds in the US; and (4) new

addressable markets given higher smart phone penetration in emerging

countries. Additionally, our case studies of Sweden, the Netherlands and

the US highlight improving piracy trends, with all three markets showing

declines in illegal downloading following the launch of free, legal

alternatives. As a consequence, we see the music industry returning to

growth of 5% within three years after nearly two decades of declines.

Vivendi will generate 41% of sales from music assuming the completion of

the announced SFR and Maroc Telecom disposals.

* Implications

With an improving industry outlook, we lift our average 2014-17E revenue

growth for UMG from 1.9% to 4.0%. We see growth, primarily driven by

streaming, coming with minimal incremental costs and forecast EBITA

margins to expand 600 bp to 16.5% by 2017; our average 2014-17E EBITA

for UMG rises 15%. We also revise our SFR numbers for higher depreciation

* Valuation

We are currently Not Rated on Vivendi and therefore update our estimates

but not our UMG valuation or Vivendi price target.

* Key risks

Faster-than-anticipated physical format declines, continued deterioration

in recorded music sales in Japan, cannibalization of digital download by

streaming services, FX movements.

Download gs_vivendi_-_streaming_drives_music_industry_growth.pdf

(BFW) M&A Tearsheet: Holcim, Lafarge Agree to a Merger of Equals

1 Holcim for 1 Lafarge --> 2.4% disocunt for Lafaege compare to Friday close.

M&A Tearsheet: Holcim, Lafarge Agree to a Merger of Equals
2014-04-07 05:37:34.914 GMT

By Gaurav Panchal
     April 7 (Bloomberg) -- Holcim, Lafarge deal structured as a
public exchange offer initiated by Holcim with an exchange ratio
of one Holcim share for one Lafarge share.
  * To have equal div. on a per share basis between
    announcement, completion
  * Deal has unanimous approval by two boards of directors, full
    support from core shareholders of both companies
  * Deal expected to close in 1H 2015
  * Rationale/Synergies:
    * Combined sales amount to ~CHF39b/EU32b; Ebitda to
      ~CHF8b/EU6.5b
    * Incremental synergies more than CHF1.7b/EU1.4b on full
      run-rate basis phased in over three years with one third
      in year one
      * CHF1.2b/EU1b at Ebitda level
      * CHF240m/EU200m in financial savings
      * CHF240m/EU200m in capex optimization
    * Strategic optimization of portfolio, anticipating
      regulatory requirements through divestments: 10% to 15%
      of global Ebitda
    * Combined group to be uniquely positioned in 90 countries
    * No country would account for more than ~10% of combined
      rev.
  * Terms Include:
    * Offer subject to Holcim holding at least 2/3rd of share
      capital and voting rights of Lafarge on a fully diluted
      basis
    * Regulatory approvals
      * Deal would get scrutiny from Brussels to Brazil
  * Deal would get scrutiny from Brussels to Brazil</li></ul></li></ul>
  * Irrevocables/Agreements from:
    * Thomas Schmidheiny, GBL and NNS Holding have entered
      into agreements in support
      * Billionaires gain as Lafarge, Holcim to merge
  * Billionaires gain as Lafarge, Holcim to merge</li></ul></li></ul>
  * Post Merger Structure:
    * LafargeHolcim would be listed on the SIX in Zurich and
      Euronext Paris
    * Will continue to be domiciled in Switzerland
    * Would operate under local governance rules with a board
      composed with equal numbers (seven) of Lafarge, Holcim
      directors
    * Chairman of the new board would be Wolfgang Reitzle,
      future chairman of Holcim
    * Bruno Lafont, chairman and CEO of Lafarge would become
      CEO
    * Thomas Aebischer, Holcim’s CFO would become CFO
    * Jean-Jacques Gauthier, Lafarge’s CFO would become chief
      integration officer
    * Executive Committee to be formed from Lafarge, Holcim
      management
    * Will maintain an attractive dividend policy
  * Exchange Offer
    * Exchange offer would be filed with AMF after relevant
      regulatory approvals been obtained, be subject to review
      by the AMF in France
    * Offer will not be open to the public in U.S., any
      jurisdiction other than France where action to permit
      offer is required
  * Statement here: http://www.holcim.com/merger
  * NOTES:
    * Top Shareholders: Bloomberg data
      * Holcim: Thomas Schmidheiny 20.11%, Eurocement 10.8%,
        Harris Associates 5.11%, Harbor Capital 2.7%,
        Capital Group 1.3%
      * Lafarge: GBL 20.99%, NNS Holding 13.94%, Dodge & Cox
        7.02%, Southeastern Asset Mgmt 4.98%, Norges Bank
        2.4%
    * Short Interest (as of April 3): Markit:
      * Holcim: 1.34% of shares outstanding, 4.7 days to
        cover
      * Lafarge: 2% of shares outstanding, 8.1 days to cover
  * Lafarge: 2% of shares outstanding, 8.1 days to cover</li></ul></li></ul>

For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Gaurav Panchal in London at +44-20-7392-0511 or
gpanchal2@bloomberg.net

WSJ : Sun Pharmaceutical to Buy Ranbaxy in $3.2 Billion Deal

Sun Pharmaceutical to Buy Ranbaxy in $3.2 Billion Deal

FDA Has Barred Imports From Four Out of Five of Ranbaxy's Factories in India

Some tablets made by Ranbaxy are arranged for a photograph in Mumbai, in a file photo from Feb. 20. Bloomberg News India's Sun Pharmaceutical Industries Ltd. 524715.BY +2.50% is taking over troubled domestic rival Ranbaxy Laboratories Ltd. 500359.BY -2.41% from its Japanese owner, Daiichi Sankyo Co. 4568.TO +3.59% , which struggled for years to turn around the company, in a deal valued at US$3.2 billion.

Ranbaxy, one of the world's biggest generic drug makers, has battled to overcome increasingly stringent regulatory measures by the U.S. Food and Drug Administration, which has barred imports from four out of its five factories in India, on safety concerns.

Before the ban, the U.S. market accounted for around 40% of Ranbaxy's revenues. Ranbaxy accounted for 20% of Daiichi Sankyo's revenues, the company said earlier this year.

The deal to sell Ranbaxy is a sign that Daiichi Sankyo is retreating from an expensive effort to clean up Ranbaxy's drug-making process. Japan's second biggest drug maker, which has spent tens of millions of dollars each year on the efforts, acquired a controlling stake in Ranbaxy in 2008 for $4.6 billion.

Mumbai-listed Sun Pharma, one of India's largest generic drug companies, will pay Ranbaxy shareholders using its own shares, offering 0.8 Sun Pharma share in return for every Ranbaxy share. The combined company will have revenue of US$4.2 billion, the Indian firms said in a statement on Monday. Sun Pharma said the equity value of the deal is US$3.2 billion.

Daiichi Sankyo said that after the sale, it will hold 9% stake in Sun Pharma, as well as the right to nominate one director on the company's board.

The Japanese company said the deal will be completed by the end of December, pending approval from Sun Pharma, Ranbaxy and the relevant authorities. Daiichi Sankyo will give details on the impact on earnings as soon as the details of the deal are finalized.

Among the problems that were identified at Ranbaxy were poor sanitary conditions in a laboratory where windows couldn't be shut and there were flies "too numerous to count," FDA said in a January report.

U.S. regulators in January barred the import of drugs from one of Ranbaxy's plants, in Toansa, after investigators said workers there were fudging test results. Drug imports to the U.S. from the other plant have been blocked since 2008.

Sun Pharma has also had its own struggles with the FDA, with imports barred from one of its plants in the state of Gujarat in March. However, the company has said the impact from the ban on its earnings would be negligible.

Sun Pharma has been looking to buy assets at home and abroad and had been talking to banks to meet such ambitions. It has earlier struck more than a dozen deals in India and overseas .

Last year, it made a failed bid for eye-products maker Bausch & Lomb, which was acquired by Canada's Valeant Pharmaceuticals International Inc. VRX.T -3.87% in a $4.5 billion deal.

>>> Asian Update

Asian Market Update: World Bank cuts China 2014 GDP forecast to 7.6%; Australia construction remains tepid

***Economic Data*** - (AU) AUSTRALIA MAR ANZ JOB ADS M/M: 1.4% V 4.7% PRIOR (2nd consecutive rise) - (AU) AUSTRALIA MAR AIG PERFORMANCE OF CONSTRUCTION INDEX: 46.2 V 44.2 PRIOR (3rd month of contraction) - (JP) JAPAN MAR OFFICIAL RESERVE ASSETS: $1.28T V $1.29T PRIOR - (TW) TAIWAN MAR CPI Y/Y: 1.6% V 1.0%E; WPI Y/Y: 0.2% V 0.3%E - (NZ) New Zealand Mar QV House Prices Y/Y: 8.8% (6-month low) v 9.3% prior

Market Snapshot (as of 03:30 GMT): - Nikkei225 -1.3%, S&P/ASX -0.2%, Kospi -0.2%, Shanghai Composite closed, Hang Seng -0.4%, Jun S&P500 -0.1% at 1,859, Jun gold -0.1% at $1,302, May crude oil -0.3% at $100.85/brl

***Highlights/Observations/Insights*** - World Bank cut its forecast for China GDP by a decimal to 7.6% in 2014 while also affirming its 2015 forecast at 7.5%, reflecting a "bumpy start to the year". Specifically, World Bank noted slowing growth rate of industrial production and contraction in exports, but also said it expects "quarterly growth to rise at midyear as external demand from the high-income countries solidifies." For the developing East Asia and Pacific (EAP) region, World Bank also cut its 2014 and 2015 targets to 7.1% from 7.2% previously expected.

- Australia AiG construction index rose 2 points but remains in contraction territory for the 3rd consecutive month. Note that this is also the 3rd of the AiG-tracked sector reports, and all three (other being services and manufacturing) are now in contraction territory. In its accompanying commentary, AiG research team said house building activity stabilised, with the sectors rate of growth only marginal, but contraction was particularly evident in engineering construction. A closely followed component of employment of the report said conditions deteriorated for a fourth consecutive month in March, and at steeper rate than in February. Later in the day, Australia ANZ jobs ads saw a modest m/m increase of 1.4% ahead of the widely anticipated official employment data from Australia this Thursday.

- In Japan, local press report assessed the early impact of higher sales tax, noting "car dealerships and department stores saw a noticeable drop in business the first weekend after the 5% consumption tax went up to 8%, but electronics retailers fared less badly than they had feared." Late last week, PM Abe's economic adviser Honda reiterated his support for BOJ to undertake additional easing, while a research report from SocGen forecasted BOJ would announce fresh measures at its Apr 30th meeting. Note that the BOJ will also make a policy announcement in tomorrow's session.

- Over the weekend, tensions have flared up once again in Ukraine, as protesters in the eastern cities seized several administrative buildings and demanded a referendum. Ukraine's interior min Avakov said he will order the police to peacefully restore order, blaming Russian Pres Putin for the provocations. Separately, Ukraine interim PM Yatseniuk denounced last week's gas price hike by Russia's Gazprom as unacceptable, warning that Ukraine should now prepare for the possibilities of Russia halting deliveries.

***Fixed Income/Commodities/Currencies*** - (JP) BOJ offers to buy ¥400B in 5-10yr JGB and ¥170B in JGB with maturity over 10-yr as well as ¥450B in CP - GLD: SPDR Gold Trust ETF daily holdings fall 1.8 tonnes to 809.2 tonnes (lowest since Mar 7th)

- USD majors are little changed, with slightly more pronounced moves coming after the World Bank cut of China GDP. AUD/USD is off by about 20 pips from its best levels below $0.9280, while NZD/USD retreated back below $0.86 after rising as high as $0.8615. USD/JPY is in a 20pip range around ¥103.30 while EUR/USD is in a 10pip range around $1.37.

***Equities*** US markets: - CTRP: Hearing rumors Baidu to fully acquire Ctrip.com; Baidu said to integrate Ctrip.com and Qunar.com after acquisition - Chinese press - SYMC: Said to be seeking to hire an advisor to protect against activist investors following reports on 3/27 that an activist investor could be seeking to effect change at the company - financial press

Notable movers by sector: - Consumer Discretionary: Kwoon Chung Bus Holdings 306.HK +25.5% (sales, purchase agreement); Toray Industries 3402.JP -1.2% (acquires asset) - Financials: Future Land Development Holdings 1030.HK +1.2% (Mar sales results); WesFarmers Ltd WES.AU +0.9% (to sell asset); Hong Kong Exchanges & Clearing Limited 388.HK +0.5% (speculation of interconnection with mainland exchanges) - Energy: CNOOC 883.HK +1.5% (speculation on asset sale); Sunshine Oilsands 2012.HK -12.7% (announces strategic financial plans) - Industrials: Kai Shui International Holdings 822.HK -2.3% (FY13 results); Great Wall Motor 2333.HK +2.0% (Mar sales results) - Technology: TCL Corp 1070.HK +4.1% (to launch game console)

>>> Ctrip.com International, Ltd. Hearing rumors Baidu to fully acquire Ctrip.co

Ctrip.com International, Ltd. Hearing rumors Baidu to fully acquire Ctrip.com; Baidu said to integrate Ctrip.com and Qunar.com after acquisition - Chinese press

- Ctrip is the largest online travel agency in China.

- Ctrip and Qunar currently receive large volume of orders through Baidu.

- Earlier in 2014, there were rumors that Alibaba could invest in Ctrip.

(Les Echos) Jean-René Fourtou "Partnering with Bouygues was untenable in terms o

Link to google Translation : { http://bit.ly/1igtCz7}

Link to French Article : {http://bit.ly/PNcM3U}

Jean-René Fourtou "Partnering with Bouygues was untenable in terms of competition"

With the sale of SFR, have you completed your disposal program?

Yes, because our Brazilian subsidiary GVT intended to remain permanently in the group. It is indeed a great tool for us to develop content in this country where the company is already considered the best broadband provider, which allowed him to strengthen in the pay TV and launch its own platform form of music. Regarding the sale of Morocco Telecom Etisalat, it is now almost complete: it will bring us to EUR 4.2 billion, the acquisition of the West African subsidiary of Etisalat in Morocco Telecom is now set and all regulatory green lights achieved. As for Activision Blizzard, we are satisfied we be disengaged from an activity whose growth was based on some great games headlights, included many uncertainties related to the success of the new consoles, and was constrained by the prohibition of certain violent games Yet countries with strong economic dynamism.

What is the profile of the new Vivendi?

We passed an even leveraged in group 13 billion euros in late 2012 to a company that will have cash of about 5 billion euros, while maintaining significant holdings in the companies we cede: 20% in SFR-Numericable should be worth around € 4 billion, we could mobilize if we make an acquisition structuring; 12% of Activision Blizzard would be worth more than € 1 billion after tax. In addition, the results of the new Vivendi permit a great debt capacity.

What will you do with all this cash?

We will make a party to all the shareholders in the form of a special dividend or a share buyback. We will clarify our intentions on this point at the time of publication of the resolutions of the General Meeting of 24 June At this meeting, Jean-François Dubos and I démissionnerons our duties with a sense of accomplishment. As already announced, I will be very happy to provide Vincent Bolloré as chairman. Arnaud de Puyfontaine be CEO. This new team will have the opportunity to comment on its guidance on the occasion of the publication of first quarter results scheduled for mid-May.

At the general meeting of 2012, you announced your intention to refocus activity Vivendi media. Where are you?

Our strategy is to position the group on growth businesses. We invest in new activities that are sources of future growth: service video on demand subscription at Canal +, and more recently in Germany, ticketing, merchandising, partnerships between music and brands .... And also making acquisitions: EMI, the free TV channels D8 and D17, the 20% of Lagardère in Canal + France, the movie studios Hoyts Australia and New Zealand, the UK producer Red, strengthening Canal + Poland. And finally taking stakes in companies similar to ours Trades: 47% in Vevo, Spotify 5%, 14% in helmet manufacturer Beats has just launched its own platform music streaming, and also interests in Firefox and other platforms. These investments increase in value and already weigh together more than a billion dollars.

Basically, why focus on the media while this activity is not without risks?

Our ambition is growth. We do not realize that there are opportunities in music, to speak only of falling record sales and forgetting the success of streaming or downloading. Did you also know that television in Brazil increased by 20-25% per year? Canal + Group generates 40% of its turnover outside France, with a growth of 15% a year abroad? We are the world leader in music and European leader in the cinema. Platforms of distribution being global players, we must be global too. Last year, 62% of the turnover of the perimeter of Vivendi future were made abroad, with a growth of 8%. Starting this year, we will exceed 70% outside France.

What was the decisive factor that led you to choose Numericable?

The feasibility of the operation. A reconciliation Bouygues would have created a group with 47% of market share by value in the mobile, which was untenable in terms of competition. The regulator has asked very important remedies to rebalance the market. The proposal Bouygues sell its mobile network and frequencies Free moving in the right direction, but it would probably take also give customers. Therefore, in the case of a marriage between Bouygues and SFR, we would have ended up with a company facing a decline in over-armed competitor, Free. Execution risks of such a project were really too important.

Bouygues How could he win?

If he had offered 15 billion euros in cash by ensuring that all competitive risks were taken to his office, he would have had a serious chance. But this was not the case. The allowance of EUR 500 million proposed in the case of veto of the Competition Authority was not enough to offset the risk of execution.

The social argument he weighed heavy?

Of course, it was also one of the weaknesses of the project Bouygues. His project involved very significant synergies but with much duplication in staffing. Bouygues Telecom and SFR are very close trades. There would have been 4000-6000 people too, not counting subcontractors. It would have been difficult to manage, even as Bouygues pledged not to lay for three years. SFR is part of Vivendi for 27 years. We can not afford to ship the employees in a project when you realize that there is a third effective too. The representative of employee shareholders and board member of Vivendi stressed this point.

The industrial project Numericable you so convinced?

He especially convinced the council. This is a promising project growth. Activities are highly complementary. There is very little overlap and very little duplication in terms of staff. It is to develop the convergence between fixed and mobile, relying on the growth of high-speed broadband and the generation of new services. This is the winning strategy in telecoms. It is the government's vision and plan France Very High Speed. It also develops everywhere in Europe. Look what Vodafone in Germany and Spain. We strongly believe in the industrial relevance of this project. And that is why Vivendi retains a 20% stake of the future together, because its valuation may increase. There is also plenty to do on the enterprise market. The future is the combination of cable and mobile.

What do you think of Patrick Drahi?

This is a polytechnic, teachers son and especially passionate about telecom. He already knows SFR in every detail, both financially and technically. It is also an entrepreneur with a lot of ambition. Finally, this is a very good financier. When he came to us in February, he had already completed its funding quite secure.

Are you worried that the Bouygues flakes sharing agreement with SFR mobile network, out of spite?

I do not see why. Bouygues Telecom remains a serious partner with whom we work and the sale of SFR is not a ground for termination of mutualisation.

You have been personally implicated because you would have taken a financial interest or applied for a position in the Numericable operation ...

In fifty years of business, I have heard everything! I remember that I have no plans at Vivendi hat, no bonus, no stock options since 2005, and I paid a fixed remuneration of € 700,000 per year, the amount is public. This time, I decided to sue for defamation Mediapart and Le Nouvel Observateur. As the Board of SFR / Numericable, will be set up following the recommendations of regulatory authorities who must authorize the entire project.

Will you retire?

I was already boss in 1972, I did not even have 33 years. The merger between Rhône-Poulenc and Hoechst was the pinnacle of my career. Then merged with Aventis, I participated in the creation of a leading global pharmaceutical which I am still a director. Then they came for me to rescue Vivendi. I was director of a twenty companies. I look forward to delivering a well endowed Vivendi and reformatted!

>>> What to look at this week end.

US Market closed lower - Nasdaq leaded the move (-2,60% lower), market opened on the highs and decline all day...Tech lower and Utilities Higher in a defensive move...Volume were above average with 764mil shares...VIX @ 13,96 +4,41%...

Macro

- Japan Econ Min Amari: PM Abe will tread carefully regarding further sales tax increases

Keep an eye on :