Europe's largest mobile phone company Vodafone Group is preparing a possible takeover bid for No 2 French mobile operator SFR should its largest shareholder Vivendi Universal seek a sale, according to UK media reports today.
Word of Vodafone's plans came after Vivendi Universal shares fell to their lowest level in over four years yesterday, after it unveiled a mammoth €17 billion first quarter charge.
Vivendi's poor performance, and widespread criticism of Chief Executive Jean-Marie Messier, has fuelled concern about a possible break up of the group, the Guardian newspaper reported.
Estimates on the cost to Vodafone of acquiring the balance of SFR - based on its market share in France - range from £6 billion sterling upwards, depending on whether a takeover battle ensues, the newspaper said.
A Vodafone spokeswoman declined to comment on the story. Vivendi were also not available for comment.
Vodafone directly owns a 20% stake in SFR and indirectly owns another 12% of the company through its shareholding in French general telecoms firm Cegetel.
Industry sources have long said Vodafone has been seeking to increase its stake in SFR, to add a French mobile phone service to its pan-European mobile phone network. But analysts said a deal would hinge more on Vivendi's intentions towards SFR than on the UK company's plans.
