french telecoms stocks soar amid takeover talks
Last Updated : GMT 22:36:19
Arab Today, arab today
Arab Today, arab today

French telecoms stocks soar amid takeover talks

Arab Today, arab today

Arab Today, arab today French telecoms stocks soar amid takeover talks

Numericable-SFR above Orange and bring the French telecoms
Paris - AFP

Shares in leading French telecoms operators soared Monday, as one of the top players officially launched a takeover bid for a rival that would profoundly shake the sector.

The Altice group, owned by acquisition-hungry Franco-Israeli tycoon Patrick Drahi, announced an offer for Bouygues Telecom thought to be around 10 billion euros ($11.3 billion).

Bouygues Telecom confirmed it had received the "unsolicited" offer and said it would hold a meeting of its board on Tuesday to discuss the takeover bid.

"There is no negotiation under way," stressed Bouygues.

Neither company disclosed the actual value of the takeover offer.

But traders were jubilant at the prospect of consolidation in the French telecoms market and rushed to buy stock in both companies.

At the opening bell, Numericable-SFR, a subsidiary of the parent group Altice, was up more than 13 percent while Bouygues was trading more than 14 percent higher.

Another player, Iliad -- which owns operator Free -- was also up by more than 10 percent.

Altice said in its statement that it would likely resell some of the assets to Iliad/Free if the deal went ahead.

According to the Journal de Dimanche weekly, which broke news of the possible tie-up on Sunday, Free would get some of Bouygues's mobile frequency, antennas and shops, while some of its employees may end up at market leader Orange.
By the middle of the session, stocks were broadly unchanged, holding onto their strong gains from the open.

The main French stock index, the CAC 40, opened up nearly three percent higher on optimism a deal could be found over Greece but fell back to around 1.5 percent higher by mid-session.

- Sands of debt -

But the French government immediately came out against the deal, with Economy Minister Emmanuel Macron saying: "Consolidation is currently undesirable for the sector."

By the middle of the session, stocks were broadly unchanged, holding onto their strong gains from the open.

"Now is not the time for opportunistic tie-ups which may be of interest to some people but which are not in the public interest," Macron told AFP.

"Jobs, investment and better customer service are the priority," added Macron, who noted that recent cases in Europe had shown telecoms mergers to have a "negative" impact.

Finance Minister Michel Sapin also advised the players to take into account "the general interest."

"If this is just to consolidate and raise all the prices, I don't think anyone will win out," he told French radio RFI.

"These are big deals between big French companies... in an area that is absolutely fundamental in daily life but also for the economic development of our country," noted Sapin.

"Therefore, by definition, the state is interested and should give its opinion," stressed Sapin.
In addition, Sapin said he was concerned about the financing of the deal -- reportedly via a loan from top bank BNP Paribas -- given that Drahi has already piled up debt of around 30 billion euros with a frenzy of acquisitions.

"We have to pay attention that this empire is not built on the sands of debt," said Sapin.

Macron's office later announced he would hold talks with Drahi over the offer on Tuesday.

Analysts at Aurel BGC financial consultancy said that the strategy of offloading some of the assets to Iliad/Free might be to ease concerns over competition.

"Over and beyond the question of financing -- very important for a group that is already in heavy debt -- Altice and Numericable-SFR will have to convince the competition authorities but also the government," Aurel BGC said.

If the deal goes ahead, it will push Numericable-SFR above Orange and bring the French telecoms sector more into line with the majority of European markets, which are consolidating from four top players to three, the analysts said.

This aspect of the deal caused concern with consumer group "UFC-Que Choisir," whose political director Cedric Musso told AFP the deal "raises several questions."

"Going from four to three operators always leads to a hike in price for consumers. We have seen this elsewhere in Europe, notably in Austria," said Musso.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

french telecoms stocks soar amid takeover talks french telecoms stocks soar amid takeover talks

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

french telecoms stocks soar amid takeover talks french telecoms stocks soar amid takeover talks

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Air China suspends flights to North Korea

GMT 10:39 2017 Thursday ,23 November

Air China suspends flights to North Korea
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria opposition meets in Riyadh

GMT 06:23 2017 Thursday ,23 November

Syria opposition meets in Riyadh
Arab Today, arab today Jordanian journalist happy of her career

GMT 17:37 2017 Thursday ,23 November

Jordanian journalist happy of her career
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Srebrenica women cry tears of joy

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 10:43 2017 Wednesday ,22 November

Cigar-shaped asteroid came

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday