Vivendi breaks off talks on Africa telecoms deal

21 Jul 2009

PARIS: French media giant Vivendi said on Monday, 20 July 2009 that it was breaking off talks on buying telecom operations in Africa from Kuwait's Zain company.

Vivendi "is today suspending discussions begun some weeks ago ... on acquiring a majority stake in (Zain's) telecommunications activities in Africa," the company said.

It said it had made the decision after applying its "usual criteria of profitability and financial discipline, in the best interest of shareholders."

It had aimed to boost its presence in Africa, where it already holds a 53% stake in Morocco's Maroc Telecom. Zain has some 65 million subscribers in all, with 40 million across Africa.

An analyst at Oddo Securities investment group told AFP that Zain was looking to sell the African assets for US$10 billion to US$12 billion.

Vivendi's shares rose on the news, gaining 4.67% in midday trade to €18.27.

Elsewhere in the telecom sector, Egyptian operator Orascom Telecom's president Naguib Sawiris said his company wanted to get a foothold in France, home to millions of north Africans, possibly by buying or teaming up with another firm.

Source: AFP

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