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: email@example.com