Economy minister Arnaud Montebourg told parliament this week that France will become a three-player telecoms market in the future.
Orange is reportedly wary of the potential risks of pushing such a deal through, which could face anti-trust concerns, while Bouygues continues to look for consolidation after losing out to Numericable in a bidding war for mobile operator SFR last month.
“All opportunities are on the table, said Philippe Marien, CFO at Bouygues. “All market operators are looking at hypotheses, opportunities, work-sharing, partnerships and commercial exchanges.”
Stephane Richard, CEO at Orange, and counterpart CEO Martin Bouygues have both suggested the possible tie-up on several occasions, according to French media reports.
Bouygues is valued at approximately €5 billion, while Orange has a market value of €32.5 billion, according to estimates.
France is targeting increased consolidation in telecoms after low-cost operator Iliad began a price war by offering lower tariffs.
The move has distressed earnings across the industry, with many losing jobs.
A combined Orange and Bouygues would create a company consisting of 50% of France’s wireless users, according to Bloomberg.
