Shares in both companies were up around 2 percent in early trading, among the top 10 gainers on Europe’s STOXX Europe 600 index .
Parent Bouygues (BOUY.PA) is seeking 8 billion euros ($11 billion) for its telecom business, the third-biggest operator in the French mobile market, whilst Iliad, the owner of newcomer Free Mobile, is prepared to pay 5 billion, the newspaper said.
Both companies declined to comment.
Vivendi (VIV.PA) on Saturday picked Numericable NUME.PA in preference to Bouygues to buy its SFR telecoms business, the second-biggest operator in the mobile market behind Orange (ORAN.PA), ending a month-long bidding battle.
Reporting by Alexandre Boksenbaum-Granier; Writing by James Regan; Editing by Greg Mahlich