Orange CEO Stephane Richard and Martin Bouygues have spoken on several occasions since April about the possible sale of Bouygues Telecom, for which Bouygues reportedly wants EUR 8 billion, Les Echos reports. "We are studying our options, but no one in government asked me to study the potential acquisition of Bouygues Telecom," Richard told the newspaper.
Orange states in a press release that it believes consolidation of the French mobile market to be positive in the long-term for investment and consumers, and that its leadership position allows it complete independence in its decision making. Free, Bouygues Telecom’s natural rival, is said to have offered EUR 4-5 billion for the company. Orange would reportedly offer at least EUR 6 billion in cash and shares, and Bouygues and JC Decaux, which own 90 and 10 percent of Bouygues Telecom, respectively, would become Orange’s biggest shareholders after the government, which holds 27 percent.
In an open letter, the CFE-CEC union representative at Orange stated that in four months of natural attrition, Orange would be able to absorb the 2,000 Bouygues employees who are reportedly due to be laid off. A merged Orange and Bouygues Telecom would have half of France’s mobile customers and up to 45 percent of fixed lines subscribers, raising competition issues.
Bouygues Telecom told Les Echos that all operators consider all hypotheses and opportunities, and restated that it is capable of pursuing its strategy alone.
