Bouygues Telecom, the French mobile phone operator, has agreed the sell its network to the smaller rival, Iliad.
The move is designed to head off any interference from competition regulators as Bouygues bids for Vivendi’s SFR.
Vivendi has decided to exit telecoms after seeing core operating profit at SFR, France’s second-biggest operator, halve from 2011 levels to 1.07 billion euros last year.
Vivendi is reviewing competing bids from Bouygues and local cable operator Numericable.
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