Entente cordiale

8 October 2003

A deal would allow Cegetel’s tax losses to be offset against SFR’s profits. The merged group could then pay bigger dividends. It would also mark a new spirit of cooperation between the owners of the French telecoms businesses Vivendi and Vodafone.

This content is for Subscribers only

Context News

Vivendi Universal plans to merge its French mobile telecoms unit SFR with its fixedline unit Cegetel, Dow Jones Newswires reported, citing unnamed sources close to the matter.

Vivendi would end up with a 56% stake in the merged group, to be called Group Cegetel SFR, according to the report. The balance would be owned by Vodafone, the UKbased mobile operator that has minority stakes in Cegetel and SFR.

The report appeared to suggest that SFR would merge with Groupe Cegetel, a holding company that owns 65% of Cegetel and 85% of SFR. That would make Cegetel a majorityowned subsidiary of the merged unit.

Vodafone and Vivendi declined to comment on the report. However, a person close to one of the companies told breakingviews that he thought a merger of SFR and Cegetel was likely.

Cegetel has a taxloss asset worth "a few hundred million euros", this person said, but no profits to offset it against. SFR made a E988m operating profit in the first half of this year.

Context News

Email a friend

Please complete the form below.

Required fields *