PARIS, March 6 (Reuters) - France’s Numericable does not intend to raise its bid that values Vivendi’s telecom unit SFR at 14.5 billion euros excluding synergies because it believes it is better than a rival offer, said two people close to the situation.
Numericable, backed by entrepreneur Patrick Drahi, submitted a bid for France’s second-biggest telecom operator on Wednesday that included 11 billion euros ($15.22 billion) in cash and gave Vivendi a 32 percent share in the new company, sources earlier said.
Rival bidder conglomerate Bouygues offered 10.5 billion euros ($14.4 billion) in cash for Vivendi’s SFR and 46 percent of the new company in a planned spin-off. It valued SFR at 14.5 billion euros before cost savings from the deal and 19 billion euros after.
Numericable believes that its offer will convince Vivendi’s board because it poses fewer regulatory risks and could be approved in less time than the year it could take for Bouygues to pass regulatory review, said the people.
Patrick Drahi’s Altice, the parent company of Numericable, declined to comment.
$1 = 0.7225 Euros Reporting by Leila Abboud and Matthieu Protard; Editing by Lionel Laurent