Vodafone Group Plc and SBC Communications Inc – the initials hide the old Southwestern Bell Corp, are stepping up their involvement in France’s second – analogue – cellular network, which is controlled by Compagnie Generale des Eaux SA. Vodafone exchanges a 4% stake in the Cofira SA holding company for a 10% stake in the operating company for the network, Societe Francais du Radiotelephone SA, with the option to increase that to 20%. The 10% stake will cost about UKP105m, and Vodafone gets two seats on the board. SBC International subsidiary, the San Antonio, Texas Baby Bell will invest $626m for an effective 10% of Societe Francaise du Radiotelephone – it will actually be investing in a new holding company – and a minority stake in other communications businesses controlled by the water company, including mobile data and paging services. The water company will in turn invest $247m and receive an effective 10% stake in Southwestern Bell Mobile Systems’ cellular operations in the Washington, DC-Baltimore market. SBC International will also acquire 10% of French cable television properties owned by Compagnie Generale’s cable television subsidiary, CGV. In the US, the two will form a partnership to hold the Washington-Baltimore stake.
