LONDON-Vodafone Group plc has agreed with Vivendi Universal S.A on the dates during which Vivendi can pre-empt Vodafone’s bid for stakes in French operator Cegetel held by British Telecommunications plc and SBC Communications Inc. In addition, the London-based global mobile operator renewed its cash offer of $6.6 billion to Vivendi for its Cegetel holding.
Vodafone agreed that Vivendi is entitled to pre-empt its Cegetel bids from Nov. 21 to Dec. 10, giving the French company more time to accept Vodafone’s offer, which Vivendi initially rejected last week. The companies are both struggling to take control of Cegetel, which holds 80 percent of French mobile operator SFR.
Vivendi is reportedly in discussions to raise the funds to counter Vodafone’s offers for the separate stakes held by BT and SBC, with the BT stake being the most likely stake Vivendi would pre-empt. Vivendi holds 44 percent of Cegetel, and with BT’s 26 percent holding, the French company could maintain its control over Cegetel.
In addition to talks with numerous banks to raise the necessary funds, Belgium’s Belgacom has been cited in press reports as a potential partner for the debt-laden Vivendi. Belgacom is one of the few European operators without high debt loads and cash for potential acquisitions.
