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British Telecom offers $82.7 million to buy French firm

Indiantelevision.com Team

(4 August 2007 7:35 pm)

MUMBAI: British Telecom (BT) is planning to fortify its presence on French shores.

In a $82.7 million acquisition, it is seeking to buy a loss making division of CS Communication and Systemes, which manages communication networks and related IT systems for French companies and public sector units.

CS Communication's 2006 annual report stated that one of the company's priorities was to restore this loss making infrastructure division to profit.

If the deal goes through, it would be the latest in a string of acquisitions by BT Global Services, which has become BT's international growth engine by serving multinationals.

Compared to European countries like Germany, Italy and Spain where it is a leading operator, BT is yet to establish its presence in France. The deal with CS Communication is expected to strengthen the UK group's presence and more than double the UK group's workforce in the country.

BT has made the offer to acquire the critical mission critical infrastructures division employing 1,400 people. This division generated $190.16 million of revenues in 2006 and had an operating loss of $1.65 million.

BT Global Services generated $352.16 million in revenue from France in 2006-07, a 14 per cent increase on the previous year and employs 900 people.

BT's proposed deal should intensify its battle for corporate customers with France Telecom, the country's former state monopoly.