Vodafone makes €12.6bn bid for Cegetel

Vodafone Group Plc has confirmed that it has started talking with Vivendi Universal SA and BT Group Plc about acquiring their stakes in Cegetel SA, the French mobile operator.

Earlier this week, market watchers were alerted to moves that suggested Vodafone was planning a hostile $8bn bid for Vivendi's 44% stake in Cegetel, but yesterday it emerged that amicable talks are already underway with the French holding company, and the UK incumbent, which owns another 26% of Cegetel.

France's number-two wireless operator is the only major overseas company in which Vodafone is a shareholder, but does not have a controlling interest. The UK-based wireless giant currently owns 15% of Cegetel, but is known to covet control of the company, and has $10.65bn in an unused bank facility with which to launch a bid.

According to Dow Jones yesterday, persons close to the ongoing negotiations indicated that Vodafone has so far put 12.6bn euros ($12.5bn) on the table, split proportionately between Vivendi, BT, and the US carrier SBC Communications, which owns 15% of Cegetel.

It is thought that BT and SBC will be open to Vodafone's offer. Vivendi, on the other hand, has long said it would not give up its stake in Cegetel, although this position is thought to have softened now that the media conglomerate is mired in debt problems of its own. At the price Vodafone is said to be prepared to meet, Vivendi would reap 6.5bn euros ($6.45bn) from selling its stake.

According to Dow Jones, Vivendi was made aware of Vodafone's interest last week, but has yet to respond, and is unlikely to for another two weeks. In the meantime, Vivendi is expected to try to find buyers for some of its other assets, and if it can find enough, it is likely that it will stubbornly hold on to Cegetel.

© ComputerWire