FONT-SIZE Plus   Neg

Bloomberg: Iliad's Informal Bid For Bouygues Telecom Stumbles On Price

France's third-largest mobile carrier Iliad SA's (ILIAF) informal takeover bid for conglomerate Bouygues SA's (BOUYY) telecom unit has stumbled due to a difference of 3 billion euros, or $4 billion, over the price for the unit, Bloomberg reported Monday, citing people familiar with the matter.

According to the Bloomberg report, Iliad recently made an informal takeover offer for Bouygues Telecom, France's fourth-largest mobile carrier, between 4 billion and 5 billion euros, However, Bouygues SA is seeking about 7 billion to 8 billion euros for the unit, putting the talks at a standstill.

According to the Blomberg report, a combination between Iliad, owner of the Free brand, and France's fourth-largest mobile carrier Bouygues Telecom would likely face fewer antitrust obstacles than a combination between Bouygues and French market leader Orange SA (ORA). Bouygues, a family-controlled construction conglomerate, is also said to be in early talks with Orange about a combination.

Bouygues very recently lost a bidding war for French media and telecom giant Vivendi SA's (VIV.L,VIVEF.PK) telecom unit SFR.

SFR was sold to cable TV provider Numericable SA, affiliated to cable holding company Altice S.A, in a deal valued at 17 billion euros or $23 billion. Bouygues was expecting to merge Bouygues Telecom unit with SFR, the second-largest French operator.

Iliad's shares closed Monday's trading in Paris at 238.70 euros, up 2.40 euros or 1.02 percent on a volume of 60,698 shares. Bouygues shares closed trading at 34.32 euros, up 0.12 euros or 0.37 percent on a volume of 471,398 shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Chipmaker Qualcomm is reportedly in talks with NXP Semiconductor NV (NXPI) for a possible acquisition, reports said. According to Bloomberg, negotiations are on with a probable price of $110 t $120 per NXP share. The deal would value NXP at around $34.7 billion. Regulators have confirmed the eleventh U.S. fatality linked to Takata Corp.'s defective air bag inflators. The National Highway Traffic Safety Administration or NHTSA said Thursday that a crash fatality in Riverside County, California, was tied to the rupture of a recalled Takata air bag inflator. Reynolds American Inc. (RAI) on Friday confirmed that British American Tobacco plc (BATS.L, BTI) has offered to buy the remaining 57.8 percent stake that it does not own in the US tobacco company for $47 billion. Reynolds said its board of directors will evaluate the offer, and respond accordingly to BAT, which currently owns 42.2 percent stake in Reynolds. The proposal represents an enterprise va
comments powered by Disqus
Follow RTT