UAE-based operator Etisalat is now the only remaining bidder for Vivendi’s 53% stake in Maroc Telecom of Morocco, though the French media giant is reportedly trying to persuade its compatriot Orange to put in an offer and potentially drive up the price.
Orange has, according to The Wall Street Journal, been considering a bid as part of its ambitious strategy to expand its presence across Africa. Vivendi will not be able to give it much time to decide though ‘ it needs to sell the stake, valued around $5.6bn, as a key element of its debt reduction program, and cannot afford to alienate Etisalat with a long delay.
That has already been a factor in seeing off another bidder, Ooredoo of Qatar, which withdrew its own offer on Friday, citing the prolonged process. ‘Although Maroc Telecom represents a good fit for our global portfolio, it is no longer in the best interests of our shareholders to continue to commit capital to what has become a lengthy process,” said CEO Nasser Marafih in a statement.
The firm also said it had not agreed to the valuation though previous reports had suggested it might have secured funding of up to $12bn to make the acquisition.
Vivendi is also considering the future of its French cellco, SFR, including possible sale or IPO, but it has failed to attract acceptable bids for other assets it is looking to sell to reduce its debt – Activision Blizzard and Brazilian broadband company GVT.