* No capital increase needed - sources
* Will not sell Alstom stake to fund bid - source
* 10 bln in synergies from Bouygues-SFR combo - Le Figaro
* Rival Numericable has up to 12 bln eur financing - sources
(Adds details, context)
By Sophie Sassard and Leila Abboud
LONDON/PARIS, March 5 Bouygues' bid
for Vivendi's SFR will be financed with cash, debt, and
shares in the newly combined company and will not require a
capital increase, said two people close to the situation.
Vivendi is expecting offers for France's second-biggest
telecom group from French cable operator Numericable
and Bouygues, sources earlier said, ahead of a 1900
GMT deadline on Wednesday.
"The financing is perfectly lined up and there is no need to
do a cash call," said one of the people of Bouygues' bid.
Reuters was unable to establish the value of the Bouygues
offer, but it will compete with a 14.75 billion euro bid being
prepared by rival Numericable. A debt financing worth
up to 12 billion euros ($16.49 billion) to back Numericable's
bid was being worked on Wednesday, banking sources said.
According to a report on Le Figaro newspaper's web site,
Bouygues would pay Vivendi in cash and a 40 percent stake in the
combined company, bringing its total offer to a value "above 15
Bouygues, the third-largest telecom operator in France,
estimates that it can reap 10 billion euros in cost savings from
teaming up with SFR, the second-largest, said the report. That
is likely higher than the synergies that could be won by
combining SFR and Numericable.
Bouygues shares had fallen as much as 2 percent on Wednesday
morning before paring back losses as investors worried about how
the SFR bid would be financed. They closed down 0.52 percent to
28.78 euros, giving the construction-to-media conglomerate a
market capitalisation of 9.23 billion euros.
Another source said Bouygues would not need to sell assets
to finance its bid, including its stake in engineering group
Bouygues, the construction-to-media conglomerate, faces a
tougher battle to get its hands on SFR because merging the
number two and three mobile operators would attract tough
regulatory scrutiny - a handicap Numericable would not face
since it is not a force in mobile.
For its part, Vivendi earlier said it will take its time to
decide whether to sell SFR now or continue with its original
plan to spin the unit off into a separate company this summer.
A spokesman for Bouygues did not return a request for
To read le Figaro story, please click here: link.reuters.com/dah47v
(Reporting by Sophie Sassard, Leila Abboud, and Gwenaelle