Neuf Telecom in Cegetel Merger, Creating Largest Alternative Full-service Operator in the Fixed French Telecom Market

May 10, 2005

Cleary Gottlieb is representing neuf telecom in its proposed acquisition of Cegetel.  With 2005 sales estimated at €2.8 billion, the combined entity is expected to be the largest alternative full-service operator in the fixed French telecom market, which is led by French historic operator France Telecom.  The transaction is expected to close later this summer, subject to approval by French antitrust authorities.

Under the merger plan, French mobile operator SFR (a member of the Vivendi Universal group) will contribute 100% of the share capital of its subsidiary Cegetel SAS in exchange for 28% of the share capital of neuf telecom and €380 million of convertible bonds issued by neuf telecom.

Neuf telecom offers broadband services and a range of voice-Internet-data products to a broad customer base composed of households, professionals, businesses, large corporations, local authorities as well as telecom operators and ISPs.