French telecoms operator Orange is reportedly in early discussions with domestic conglomerate Bouygues to acquire its telecoms and media assets, Bloomberg reports. According to unnamed sources familiar with the matter, Bouygues Group is said to be considering a spinoff of its construction business while retaining a minority stake in Bouygues Telecom. No formal offer or decision has been made, though the two sides are said to be examining the antitrust and regulatory hurdles that a potential tie-up could attract.
As previously reported by TeleGeography’s CommsUpdate, market leader Orange reportedly hired investment banks Lazard and Credit Suisse to study a potential purchase of Bouygues Telecom in May 2014. Subsequently, the two sides allegedly held merger talks but failed to agree on a price.