June 12, 2014 / 9:31 AM / in 4 years

Orange says no deal terms reached with Bouygues

PARIS, June 12 (Reuters) - Orange Deputy Chief Executive Pierre Louette on Thursday said no deal term sheet or agreement existed with Bouygues over the sale of France’s third-largest mobile operator to its biggest player.

The two companies have explored a tie-up in recent weeks but talks have not been successful to date. Both sides on Thursday did not rule out talks could restart at some point.

Speaking at Les Echos telecom conference, Louette said Orange must take into account the remedies that competition regulators would impose and whether they would sap the economic interest of a deal.

“Today there have been no discussions that have led to agreeing on a term sheet or deal structure,” Louette told the conference.

“Orange would do nothing that would not rebuild value and create margin for us relatively quickly,” he said.

Louette also holds the title of general secretary of Orange.

Third-placed Bouygues on Wednesday said that tie-up talks with Orange and low-cost player Iliad had not yet succeeded and that it was preparing to chart a solo course.

Bouygues Telecom, which has been hard hit by the arrival of Iliad to the mobile arena since January 2012, plans to cut 1,516 jobs or 17 percent of its staff to reduce costs to ensure its survival.

In midday trading, Iliad shares were up 7 pct, Bouygues more than 4 percent and Orange relatively flat. (Reporting by Leila Abboud and Gwenaelle Barzic, editing by Astrid Wendlandt)

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