Vivendi Chooses Altice’s 17B Euro Bid for SFR

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April 7 (Bloomberg) –- Bloomberg’s Caroline Connan reports on the reasons why Vivendi chose Altice’s bid for SFR over Bouygues’ offer. She speaks to Anna Edwards and Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Carolyn, why did out this jews this offer over the offer that was on the table from bouygues?

There is a lot of official reasons.

Obviously vivendi will get less cash from altus, only 13.5 billion euros.

Bouygues offered 15.5 billion euros.

The first official region is just altice has promised not to fire any sfr employees in the next 36 months.

The chairman of vivendi said that the bouygues offer would have put 6000 sfr jobs at risk.

That is the first official reason.

More importantly, the offer has less risk to be rejected by competition.

A much smaller operator than bouygues.

It wasn't clear whether the bouygues offer would have passed the regulatory test.

The chairman this morning said it probably wouldn't have passed because it would control 47% of the market.

Vivendi will keep about 20% and 20% will be publicly traded.

Vivendi also wants to keep their shareholders happy.

The chairman has promised to return cash to shareholders either in a special dividend or share buyback.

What does this mean for bouygues?

What is the future for this divestment five business?

The problem for bouygues is that it will be left over in this deal.

Numericable and orange control about 80% of the market in france, meaning that bouygues and the fourth operator will have to share just about 20% of the market.

There is a lot of investments that need to be made for high-speed internet, for fiber.

It is unclear whether bouygues will be able to keep that investment.

That is why the bouygues offer was backed officially, openly by the french government and by the former industry minister.

There is even speculation that bouygues could become in time a target because of the situation and that possibly another company could attempt to take over bouygues.

Thank you very much.

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This text has been automatically generated. It may not be 100% accurate.


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