Numericable Won't Raise SFR Bid

By Ruth Bender

PARIS--The controlling shareholder of French cable operator Numericable Group SA (NUM.FR) Wednesday said he would not increase his bid for Vivendi SA's (VIV.FR) SFR.

In an interview Patrick Drahi said he had no reason to raise his offer. "I have worked seven years on this," Mr. Drahi told French daily Les Echos. "I have no reason to modify it."

Mr. Drahi's comment comes as Altice SA (ATC.AE), the Luxemburg-based holding group that controls Numericable, finds itself in a race with French conglomerate Bouygues SA (EN.FR) to buy SFR.

Altice on Tuesday confirmed it had made a firm offer to Vivendi which includes EUR10.9 billion in cash and would grant a 32% stake to Vivendi in the newly merged Numericable-SFR unit.

Bouygues on the other hand offered EUR10.5 billion in cash and a 46% stake in a newly merged Bouygues Telecom-SFR group.

Mr Drahi reiterated that his offer stands until Friday. He said a merged Numericable-SFR would be based and listed and pay taxes in France, in a bid to reassure French officials. He also said he would be the president of a merged group if his offer is picked.

It comes as Numericable, which listed on the Paris stock exchange last November, posted a 32% drop in full-year profit. Net profit fell to 65 million euros ($90.16 million) in 2013 from EUR86 million in the prior year, after it was hit by financial costs linked to acquiring new clients.

Revenue rose 0.9% to EUR1.31 billion and the group's total customers rose 5% to 1.71 million.

Write to Ruth Bender at [e-mail]

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