Vivendi Universal has entered discussions with its bankers in an attempt to secure the funding necessary to take control of Cegetel, the French telecoms firm.
A report in the
Financial Times claimed that the indebted media group plans to head off a challenge from Vodafone and launch a bid for BT’s 26% stake in Cegetel.
Vodafone has an agreement to purchase the holdings of BT and SBC Communications for a total of E6.3 billion and is willing to pay a further E6.8 billion for Vivendi’s investment. However, Jean-Marie Fourtou, who heads up the French media group, has not responded to the offer and is believed to be considering a counter bid.
By rights, Vivendi is allowed to pre-empt any bid for BT’s share and would secure the stake if it offered the same amount as Vodafone. This also applies to the 15% stake held by SBC. Cegetel is particularly sought after because of its 80% share in the French mobile operator, SFR.
Vivendi is striving to reduce a E19 billion debt burden but earlier this week managed to secure an extension to a $1.6 billion credit facility that will give it time and breathing space to organise asset disposals. Vivendi Universal Publishing (VUP), which includes the US publisher Houghton Miffin, is expected to feature in the next round of sales (see Record Losses Force Vivendi To Hawk Assets).
