Numericable CEO eyes SFR merger
The CEO of French cable group Numericable has reportedly said that a tie up with Vivendi’s SFR would make sense in the competitive French market.
Eric Denoyer told French publication Le Figaro that the scenario of a merger with SFR has been studied “since it responds to real industry logic.”
Given the significant difference in estimated value between the two, with SFR believed to be worth €15 billion and Numericable €4 to €5 billion, it was believed at the time that a large cash payment of around €4 billion would be required as part of the deal.
SFR has suffered as a result of Iliad’s Free entering France’s mobile market at the beginning of last year. The operator sparked a price war with its low cost tariffs cutting mobile earnings for all of its competitors.
Press reports in January said France’s antitrust watchdog had opposed a merger of Iliad and Vivendi’s mobile telecoms units but SFR CEO and chairman, Stéphane Roussel, has denied the company is up for sale.