Jean-Bernard Levy, Chairman of the Management Board and Chief Executive Officer of Vivendi, speaks during a news conference to present the company's 2006 full year results in Paris Mar. 7, 2007.(Xinhua/Reuters Photo)
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    BEIJING, Dec. 21 (Xinhuanet) -- France's second-largest mobile operator, Vivendi SA, announced plans Thursday to take over telecommunications operator Neuf Cegetel in a 6.33 billion U.S. dollar deal that would boost its presence in the fast-expanding broadband market.

    Vivendi's mobile phone arm, SFR, reached a preliminary agreement to buy a 29.5 percent stake owned by commodity trading group Louis Dreyfus, Vivendi said in a statement. SFR already holds 40.5 percent of Neuf Cegetel.

    The telecommunications and entertainment giant is now even closer to rivaling dominant telecom France Telecom under the agreement. SFR, which is 56 percent owned by Vivendi, will pay 34.50 euros (49.63 dollars) per share for the Louis Dreyfus Group stake. SFR would then offer 36.50 euros (52.50 dollars) per share the rest of the outstanding shares in Neuf Cegetel, the statement said.

    If the offering is successful, the overall deal would cost SFR 4.4 billion euros (6.33 billion dollars) excluding debt, Vivendi spokesman Alain Delrieu said.

    The deal would combine Vivendi with France's second-biggest broadband provider, reshaping the country's telecom landscape as companies have begun to invest heavily in rolling out next generation fiber-optic networks to give consumers access to ever faster internet connections.

    The purchase of the Louis Dreyfus stake is subject to approval from antitrust authorities, Neuf Cegetel said in a statement.

    Vivendi said that SFR's planned purchase of Neuf Cegetel would add to its net earnings per share as soon as 2009. Vodafone Group PLC, which holds the remaining 44 percent of SFR, is "fully supportive" of the company's plan for Neuf Cegetel, Vodafone spokesman Simon Gordon said Thursday

    The new company will spend more than the 450 million euros that SFR and Neuf Cegetel had previously earmarked for investment in the fiber-optic rollout, Frank Esser, the chairman and chief executive of SFR, told Dow Jones Newswires. "We have all the means to invest," Esser said.

    (Agencies)