CDC Head Offers Bouygues Help for SFR Merger - Report

PARIS--The Caisse des Depots et Consignation, a government-owned bank that manages state holdings in private companies, has offered help to Bouygues SA (EN.FR) if it reopens negotiations with Vivendi SA (VIV.FR) to buy its mobile phone unit SFR, the bank's Chairman Jean-Pierre Jouyet told Les Echos.

"The Caisse des Depots, which is a Vivendi shareholder, could... back with funds a merger between Vivendi, SFR and Bouygues," Mr. Jouyet told the newspaper in an interview.

Vivendi said Friday it had entered exclusive talks with Altice SA (ATC.AE) for three weeks, and that its board would then review options.

France's Industry Minister Arnaud Montebourg has publicly backed a merger with Bouygues Telecom, an option that would cut the number of mobile phone operators on the French market to three from four, and end a price war that has weakened the country's mobile companies.

Separately, Mr. Jouyet said he's "flexible" on the CDC's stake in Veolia Environnement SA (VIE.FR), a waste-management company.

"In Veolia, we're not necessarily remaining the largest shareholder," Mr. Jouyet said.

Newspaper website: http://www.lesechos.fr

Write to Gabriele Parussini at [e-mail]

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