The board of directors of Orange has concluded that an agreement reaching a possible consolidation with Bouygues Telecom has not been reached.
As a result, the decision has been taken to end the discussions with Bouygues, which have been ongoing since January 5 this year.
Bloomberg reports that although the two sides had imposed a deadline by the end of this weekend (Sunday, April 3), talks between the two parties broke down well before then.
Bouygues, in a separate statement, said key sticking points included social guarantees for its employees, the level of its stake in Orange and related governance, execution risk and the valuation of its telecom unit.
Bloomberg adds that Orange was negotiating with its competitors Iliad and Numericable-SFR and the French state over the sale of assets to fend off antitrust concerns.
A deal would have valued Bouygues’ carrier at as much as €10 billion. However, disagreements surfaced over such issues as valuation, breakup fees and who would buy or take over such assets as Bouygues mobile frequencies and network.
Had a deal gone ahead, it would have made Bouygues a partner with the French government, Orange’s biggest shareholder.
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