Iliad’s Bid for Bouygues Telecom Said to Stumble Over Price Gap
2014-06-09 16:26:22.96 GMT
By Matthew Campbell and Marie Mawad
June 9 (Bloomberg) -- A bid by Iliad SA for Bouygues
Telecom has stumbled over a 3 billion-euro ($4 billion) price
gap as French mobile operators seek to merge in one of Europe’s
most competitive markets, people familiar with the matter said.
Iliad, owner of the Free brand, in recent weeks made an
informal offer valued at between 4 billion euros and 5 billion
euros, the people said, asking not to be identified discussing a
private matter. Bouygues Telecom’s owner, Bouygues SA, is
seeking about 7 billion euros to 8 billion euros for the mobile
operator, France’s third-largest cellular carrier, they said.
Discussions are currently at a standstill, the people said.
Europe’s telecommunication operators are trying to combine
as costs rise for high-speed fourth-generation networks and the
pace of smartphone adoption slows. In Germany, a proposed merger
between Telefonica SA and Royal KPN NV’s local units is awaiting
approval by antitrust regulators, a deal that would make it the
first large European market to shrink to three full-service
mobile operators.
A representative for Iliad declined to comment. A spokesman
for Bouygues declined to comment on an Iliad offer, saying only
that all options are on the table and the company favors a
standalone strategy for its mobile unit.
Bouygues, a family-controlled construction conglomerate,
has said it is in early-stage discussions about a deal with
Orange SA, the largest French phone company and former state
monopoly. That combination could lead to significant antitrust
challenges, since Orange is by far the market leader in French
mobile.
For Related News and Information:
Top Stories:TOP<GO>
--With assistance from Francois de Beaupuy and Helene Fouquet in
Paris.
To contact the reporters on this story:
Matthew Campbell in London at +44-20-3525-8684 or
mcampbell39@bloomberg.net;
Marie Mawad in Paris at +33-1-5530-6290 or
mmawad1@bloomberg.net
To contact the editors responsible for this story:
Aaron Kirchfeld at +44-20-3525-8830 or
akirchfeld@bloomberg.net;
Kenneth Wong at +49-30-70010-6215 or
kwong11@bloomberg.net
Mark Beech
2014-06-09 16:26:22.96 GMT
By Matthew Campbell and Marie Mawad
June 9 (Bloomberg) -- A bid by Iliad SA for Bouygues
Telecom has stumbled over a 3 billion-euro ($4 billion) price
gap as French mobile operators seek to merge in one of Europe’s
most competitive markets, people familiar with the matter said.
Iliad, owner of the Free brand, in recent weeks made an
informal offer valued at between 4 billion euros and 5 billion
euros, the people said, asking not to be identified discussing a
private matter. Bouygues Telecom’s owner, Bouygues SA, is
seeking about 7 billion euros to 8 billion euros for the mobile
operator, France’s third-largest cellular carrier, they said.
Discussions are currently at a standstill, the people said.
Europe’s telecommunication operators are trying to combine
as costs rise for high-speed fourth-generation networks and the
pace of smartphone adoption slows. In Germany, a proposed merger
between Telefonica SA and Royal KPN NV’s local units is awaiting
approval by antitrust regulators, a deal that would make it the
first large European market to shrink to three full-service
mobile operators.
A representative for Iliad declined to comment. A spokesman
for Bouygues declined to comment on an Iliad offer, saying only
that all options are on the table and the company favors a
standalone strategy for its mobile unit.
Bouygues, a family-controlled construction conglomerate,
has said it is in early-stage discussions about a deal with
Orange SA, the largest French phone company and former state
monopoly. That combination could lead to significant antitrust
challenges, since Orange is by far the market leader in French
mobile.
For Related News and Information:
Top Stories:TOP<GO>
--With assistance from Francois de Beaupuy and Helene Fouquet in
Paris.
To contact the reporters on this story:
Matthew Campbell in London at +44-20-3525-8684 or
mcampbell39@bloomberg.net;
Marie Mawad in Paris at +33-1-5530-6290 or
mmawad1@bloomberg.net
To contact the editors responsible for this story:
Aaron Kirchfeld at +44-20-3525-8830 or
akirchfeld@bloomberg.net;
Kenneth Wong at +49-30-70010-6215 or
kwong11@bloomberg.net
Mark Beech