Tuesday, Jun 18, 2013
(This story was originally published on Monday.)
By Sam Schechner and David Gauthier-Villars
PARIS--Vivendi SA (VIV.FR, VIVHY) is pushing France Telecom (FTE, FTE.FR) to step in with a last-minute bid for Vivendi's African phone operator Maroc Telecom (IAM.CL), according to people familiar with the matter, a move that would inject new competition into a months-long auction process that has dwindled down to one official bidder.
The Paris-based France Telecom has for months been studying whether to throw its hat in the ring, in case there were an opportunity to swoop in, some of the people familiar with the matter said. But no bid, nor decision on whether to make one, has yet been made, the people added.
"It's something we're looking at because it's strategically interesting, but there's no offer on the table," a spokesman for France Telecom said.
On Friday, Qatar Telecom (QTEL.DO) presented what could be a possible opening for the former French monopoly: The Doha-based company withdrew its formal offer to buy Vivendi's 53% stake in Maroc. That left only Emirates Telecommunications Corp. (ETISALAT.AD), also known as Etisalat, in the official running for the asset, which has operations in various parts of West Africa.
Vivendi, which has been in advanced negotiations on a potential sale with Etisalat, has been pushing France Telecom to make a bid as soon as possible, in part to help boost its negotiating position, the people familiar with the matter said. But one of those people said that Vivendi cannot wait long for France Telecom, lest it alienate its only official bidder.
Vivendi has in recent months been looking for offers that value its stake in Maroc Telecom above its value on the Moroccan stock exchange, about EUR4.2 billion, according to people familiar with the matter. It remains unclear whether Etisalat's offer is in that ballpark, and whether France Telecom would be willing to pay such a price for control of the asset.
Selling Maroc Telecom is a lynchpin in Vivendi's broader effort to get rid of its telecommunications assets and reshape itself as a smaller business focused on a lineup of media companies.
In particular, the Maroc deal would set up the company's bigger ambition to spin off French telecommunications operator SFR by allowing the company to reduce debt, according to people familiar with the matter.
Write to Sam Schechner at sam.schechner@wsj.com and David Gauthier-Villars at david.gauthier-villars@wsj.com
(END) Dow Jones Newswires
18-06-13 0330GMT
