Feeds

Vodafone renews offer for Vivendi's Cegetel stake

Not raising stakes

  • alert
  • submit to reddit

Mobile application security vulnerability report

ComputerWire: IT Industry Intelligence

Vivendi Universal SA's gamble that it could force Vodafone Group Plc to come back with an improved offer for its 44% Cegetel stake has spectacularly failed, after the Newbury, UK-based company renewed its original offer of 6.77bn euros ($6.64bn), which Vivendi rejected last week as too low.

"Vodafone believes its cash offer represents a full and fair price for Vivendi's Cegetel interests," the mobile operator said in a statement.

The renewed offer is a shrewd move by Sir Christopher Gent, CEO of Vodafone because it puts the onus firmly back onto Vivendi to either sell its Cegetel interests for an attractive amount of cash, which would go a long way to reduce its $18.6bn debt burden, or to find enough money to launch its own counter bid for the Cegetel stakes held by BT Group Plc and SBC Communications Inc.

Finding money to launch a counter bid is proving to be difficult for the financially weak Vivendi. Bankers have been reluctant to help it finance a counter bid, and so far it has raised disappointing amounts from recent asset sales, namely its publishing businesses. Investors would much prefer the Paris, France-based media giant accepts the money. However, the Cegetel stake is Vivendi's cash cow, and CEO Jean-Rene Fourtou is known to be keen to hang on to it if he possibly can.

Vodafone's renewed offer is valid until December 10, the same deadline by which Vivendi has to decide whether to make an offer for the Cegetel stakes held by BT and SBC.

© ComputerWire

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.