Bouygues launches its SFR to counter Numericable :
PARIS
( Reuters) - Bouygues detailed Thursday against its offensive to
prevent Numericable not get their hands on SFR, an offer that is more
delicate than that of the cable operator in terms of competition, but
that promises a high amount synergies.
Bouygues offers Vivendi € 10.5 billion in cash and 46% of the group consisting of Bouygues Telecom and SFR, which would then be traded.
Bouygues , which would retain a 49% stake in the new company , said further 10 billion euros potential synergies of the combination . He therefore argues that its offer values SFR to 19 billion euros after synergies ( 14.5 billion before synergies) .
Numericable no plans so far intends to raise its offer , told Reuters two sources familiar with the matter .
" There will be no change in supply. This is not expected," he told Reuters one of these sources. " These are two different industrial projects. "
Altice , the parent Numericable , did not wish to comment on these reports .
Bouygues is the only rival cable operator to take control of SFR, Vivendi 's telecom subsidiary for sale in connection with the demerger of its business media and telecoms.
According to sources close to the negotiations , Numericable has 11 billion euros in cash to Vivendi and a 32% stake in the new company , a project that valued SFR at € 14.75 billion .
The group, which was introduced in Exchange late last year , said , according to a source familiar with the matter , to € 12 billion potential synergies. Press articles had initially mentioned a figure of six million.
Iliad JUMPS IN STOCK
Bouygues said he would not need to resort to a capital increase to finance the operation or sell assets .
In an interview with Les Echos Friday , Martin Bouygues promised a reconciliation between the two operators would be no dismissal or voluntary redundancy .
"We want to reorganize the company without forced departures and I have already mentioned ," said the CEO of Bouygues . "I am clear commitments : we will not plan termination , we will not make voluntary departure plan ," he adds .
In exchange , the stock jumped after these announcements, while the title Numericable accused the blow.
"Traditionally, in Arbitration M & A , we sell and the buyer buys the target, but the target here is not publicly and visibly Bouygues is chosen by the market preferably Numericable because it is a player already installed and more credible , which may be reinforced by this acquisition , "said Christian Jimenez , president of Diamant Bleu Gestion.
" The announcement club are the synergies ," said a market operator , while finding difficult to verify the figures .
The Bouygues share price ended the session with a gain of 6.59% to 30.67 euros, in volumes representing about 5 times those achieved in an entire session on Euronext past three months . Numericable his side fell 5.26% .
"The offer Numericable seems disproportionate to the financial situation of the group ," says Frederic Rozier , management consultant at Meeschaert Gestion Privée .
Vivendi closed on an increase of 0.88% and Iliad , the parent company of mobile operator Free has ransacked the French telecoms market for two years, was awarded 6.96% .
" Iliad should be the final winner of consolidation movements to come ," said Nomura in a note. The broker believes that a transaction between Numericable and SFR would mainly neutral for the market and a " consolidation involving Bouygues (with SFR and Iliad ) would be very positive for the market."
THE " ACTION " TO ENSURE THE COMPETITION
In the interview with Les Echos , Martin Bouygues announced that it will invest in the technology of optical fiber.
"We believe (...) that the ultra-fast broadband technology that should be encouraged is that of ' fiber to the home (...) ," he notes . " We pledge to invest 400 million euros per year in this technology , which is twice more than before ," he said.
During a conference call , Chief Financial Officer of Bouygues Philippe Marien said without elaborating that the group was willing to consider " measures " to ensure competition on the French telecoms market and that it " would be able to avoid any forced departure " .
"Contacts with the Competition Authority has not started," he said, adding that the offer would not need to be examined by the European regulatory authorities.
On the occasion of the IPO , Bouygues plans to launch a capital increase of the new group Bouygues Telecom , SFR, in which the group would not participate .
Requested to encrypt the call market , Philippe Marien simply replied that the fundraising and product sales potential from the combination would achieve some three billion euros .
Philippe Marien would not say if the offer included a penalty clause in case of failure of the talks .
Bouygues offers Vivendi € 10.5 billion in cash and 46% of the group consisting of Bouygues Telecom and SFR, which would then be traded.
Bouygues , which would retain a 49% stake in the new company , said further 10 billion euros potential synergies of the combination . He therefore argues that its offer values SFR to 19 billion euros after synergies ( 14.5 billion before synergies) .
Numericable no plans so far intends to raise its offer , told Reuters two sources familiar with the matter .
" There will be no change in supply. This is not expected," he told Reuters one of these sources. " These are two different industrial projects. "
Altice , the parent Numericable , did not wish to comment on these reports .
Bouygues is the only rival cable operator to take control of SFR, Vivendi 's telecom subsidiary for sale in connection with the demerger of its business media and telecoms.
According to sources close to the negotiations , Numericable has 11 billion euros in cash to Vivendi and a 32% stake in the new company , a project that valued SFR at € 14.75 billion .
The group, which was introduced in Exchange late last year , said , according to a source familiar with the matter , to € 12 billion potential synergies. Press articles had initially mentioned a figure of six million.
Iliad JUMPS IN STOCK
Bouygues said he would not need to resort to a capital increase to finance the operation or sell assets .
In an interview with Les Echos Friday , Martin Bouygues promised a reconciliation between the two operators would be no dismissal or voluntary redundancy .
"We want to reorganize the company without forced departures and I have already mentioned ," said the CEO of Bouygues . "I am clear commitments : we will not plan termination , we will not make voluntary departure plan ," he adds .
In exchange , the stock jumped after these announcements, while the title Numericable accused the blow.
"Traditionally, in Arbitration M & A , we sell and the buyer buys the target, but the target here is not publicly and visibly Bouygues is chosen by the market preferably Numericable because it is a player already installed and more credible , which may be reinforced by this acquisition , "said Christian Jimenez , president of Diamant Bleu Gestion.
" The announcement club are the synergies ," said a market operator , while finding difficult to verify the figures .
The Bouygues share price ended the session with a gain of 6.59% to 30.67 euros, in volumes representing about 5 times those achieved in an entire session on Euronext past three months . Numericable his side fell 5.26% .
"The offer Numericable seems disproportionate to the financial situation of the group ," says Frederic Rozier , management consultant at Meeschaert Gestion Privée .
Vivendi closed on an increase of 0.88% and Iliad , the parent company of mobile operator Free has ransacked the French telecoms market for two years, was awarded 6.96% .
" Iliad should be the final winner of consolidation movements to come ," said Nomura in a note. The broker believes that a transaction between Numericable and SFR would mainly neutral for the market and a " consolidation involving Bouygues (with SFR and Iliad ) would be very positive for the market."
THE " ACTION " TO ENSURE THE COMPETITION
In the interview with Les Echos , Martin Bouygues announced that it will invest in the technology of optical fiber.
"We believe (...) that the ultra-fast broadband technology that should be encouraged is that of ' fiber to the home (...) ," he notes . " We pledge to invest 400 million euros per year in this technology , which is twice more than before ," he said.
During a conference call , Chief Financial Officer of Bouygues Philippe Marien said without elaborating that the group was willing to consider " measures " to ensure competition on the French telecoms market and that it " would be able to avoid any forced departure " .
"Contacts with the Competition Authority has not started," he said, adding that the offer would not need to be examined by the European regulatory authorities.
On the occasion of the IPO , Bouygues plans to launch a capital increase of the new group Bouygues Telecom , SFR, in which the group would not participate .
Requested to encrypt the call market , Philippe Marien simply replied that the fundraising and product sales potential from the combination would achieve some three billion euros .
Philippe Marien would not say if the offer included a penalty clause in case of failure of the talks .
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