Une certaine idee de la finance

4 December 2002 By Paul Raynes

Une certaine idee de la finance

4 December 2002 By Paul Raynes

Vivendi has exercised its preemption rights over BT’s stake in France’s second telecoms company. Why? The conglomerate’s strategy is far from obvious but it’s still a conglomerate.

This content is for Subscribers only

Context News

Vivendi Universal has decided to increase its stake in telecoms operator Cegetel to 70%, by exercising a preemption right over a 26% shareholding that BT had agreed to sell to Vodafone. Vodafone will go ahead with plans to buy a 15% stake from SBC, increasing its Cegetel holding to 30%. As a result, VU will have a 56% interest in Cegetel's mobile subsidiary SFR, with Vodafone holding the rest.

The E4bn cost of buying VU's new shareholding will be financed through a special purpose vehicle into which it will inject E2.7bn of proceeds from asset sales as equity, and a E1.3bn nonrecourse loan.

VU's chief executive JeanRene Fourtou said that this move left VU with two "poles", telecoms and entertainment. He said it was possible that VU would spin off its US entertainment assets during 2003.

Email a friend

Please complete the form below.

Required fields *