Bouygues Turns Down Altice Offer For Telecom Unit
French telecom company says it was concerned by antitrust risk and jobs impact
PARIS— Bouygues SA Tuesday turned down an offer from Altice SA to purchase its telecom unit, delivering a blow to billionaire investor Patrick Drahi’s efforts to ease competition in the French market.
Bouygues said its board of directors unanimously decided not to pursue Altice’s proposal that, according to sources familiar with the matter, offered to pay around EUR10 billion for the rival telecom operator.
Bouygues said it believed Bouygues Telecom as a stand-alone could significantly boost profit margins in the years to come. The company also said it was concerned whether regulators would sign off on the proposed tie-up as well as its impact on jobs.
Altice has aimed to merge its French unit Numericable-SFR with Bouygues telecom for months, a deal that would have thrust it into the no. 1 position on the French market. A tie-up would have also generated massive cost savings.
Bouygues’s refusal comes amid intense political pressure from the French government. Economy Minister Emmanuel Macron in particular lashed out at Mr. Drahi this week, warning that the merger would lead to job losses.
Advertisement
Altice and the French government weren’t immediately available to comment.