French prime minister Manuel Valls warned Altice and Bouygues that the French government won’t back any deals in the telecommunications sector that wouldn’t guarantee to preserve jobs and investments in future networks, reports The Wall Street Journal.
Since Sunday, the French government has sent repeated warning shots against Altice’s proposed offer to buy Bouygues’s telecom unit Bouygues Telecom. Altice Monday confirmed it had made an offer for Bouygues Telecom that, according to sources familiar with the matter, is offering to pay around €10 billion ($11.35 billion).
Speaking on French TV, Mr. Valls said telecom operators will need to make sure they preserve or even increase the number of jobs in the sector, and that they will continue to invest in networks. “Any operation that doesn’t respond to these challenges can’t have the support of the government,” Mr. Valls said.
The tough stance comes as the French government is preparing to auction off new mobile spectrum at the end of the year that it hopes will fetch at least €2.5 billion.