Vivendi spreads widen due to Cegetel bid fears

The cost of protection on the credit had narrowed to 700bp from 900bp 12 days ago, when UK mobile company Vodafone made a bid for Vivendi’s 44% stake in Cegetel. But spreads widened by 40bp on October 19 as it emerged that the new Vivendi chief executive, Jean-Rene Fourtou, wanted to win control of Cegetel by keeping its stake and placing a counterbid for the 15% and 26% stakes held by US telecoms carrier SBC Communications and UK telecoms company BT.

A commercial tribunal in Paris on Monday

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