Ahead of their scheduled merger, the board of directors of the French telecom giants meet independently to iron out any burrs and regulatory requirements that may act as a hindrance to the deal.
Two anonymous sources who are knowledgeable of the matter at hand have disclosed that the board of directors of Bouygues Telecom and that of Orange are schedule to meet separately so as to strategize and discuss on the planned sale of Bouygues’s telecom unit.
Given that there is just a 1 day buffer for the deadline set by both companies for the 10 billion euro ($11.2 billion) deal that sees Orange acquire Bouygues Telecom unit, certain key elements of the deal are yet to be ironed out before pen is put on paper and the deal is concluded, as per a source.
The unresolved questions hover around the financial terms and the subsequent sale of Bouygues assets to rivals its rival SFR and Iliad. The complex disinvestment is a regulatory requirement as this merger would reduce the number of French telecom operators from four to three. If this deal goes through Bouygues will become the second biggest shareholder in Orange after the French state.
“We’ve worked a lot this past week-end but there remains certain elements to discuss,” said a source.
Both companies, Orange and Bouygues, declined comment.