"Orange confirms the resumption of preliminary negotiations with the Bouygues group for the purpose of integration with Bouygues Telecom“. So Orange formalizes in an official note the rumors circulated in recent weeks. The discussions "have no calendar constraints and do not commit to a predefined scheme", specifies the French telecommunications operator (formerly France Telecom). But the market observes the moves of the two transalpine groups as it looks at the kick-off of the consolidation game in the TLC sector in Europe.
Orange – continues the press release – “explores the opportunities of the French telecom scenario, recalling at the same time that its investments and positions allow it total independence”. The group led by Stephane Richard also indicates that "it will act in the exclusive interest of its shareholders, its employees and its customers and will be particularly attentive to the creation of value from this project".
In turn, the Bouygues group - which is also active in construction and industry - in a note indicates that today "a confidentiality agreement" was signed with Orange regarding the negotiations on the subsidiary in the telecommunications. "To date, no decision has been taken and nothing is guaranteed on the outcome of the talks," adds the Bouygues group.
In recent weeks, rumors of Orange's interest in Bouygues Telecom have gradually increased. On Sunday, the 'Journal du Dimanche' reported the formal start of negotiations before Christmas, estimating the valuation of Bouygues Telecom at 10 billion euros. According to the JDD, Bouygues would receive in exchange for the sale of the subsidiary a 15% stake in Orange worth 8 billion and the rest in cash and would be the second largest shareholder behind the French state.
