Hollande Government Dipping Into SFR Shows Dirigisme Rules

French dirigisme is alive and well.

For evidence, look no further than Vivendi SA’s efforts to sell its SFR unit, France’s second-largest phone company. The French government, with no stake in Vivendi, openly came out in favor of a bid by Bouygues SA. When Paris-based Vivendi disregarded its advice and decided to hold exclusive talks with Altice SA, President Francois Hollande’s government backed Bouygues’s sweetened offer with an investment pledge.