Cegetel and 9 Telecom prepare to merge

11 May 2005

Vivendi Universal’s fixed line telecoms operator Cegetel and 9 Telecom will later today announce plans to merge their two enterprises, according to reports in French newspaper Les Echos. The amalgamated entity will become the second largest player in the fixed line market behind incumbent France Télécom, with pro forma sales of around EUR2.6 billion (in 2004) and with more than 850,000 ADSL broadband subscribers. Vivendi has already acquired the 35% stake in Cegetel held by railways operator SNCF, and will soon swap its entire Cegetel holding for 9 Telecom shares and a deferred cash payment. Upon completion of the tie-up, 9 Telecom shareholders will hold 72% of the new company, with Vivendi holding the remainder.

France, neuf Cegetel