Vivendi calls Saudi talks off

French conglomerate Vivendi said Tuesday that it has called off discussions with Middle Eastern company Saudi Oger regarding an investment in Oger Telecom.

Vivendi did not give a reason for the breakdown in talks and only said it will continue to pursue an acquisition strategy “with the emphasis on value creation at an acceptable price, combined with clear prospects of control,” which suggests that the French company could not get favourable terms in the Saudi deal.

It was only last week that Vivendi executives were quoted as saying an Oger Telecom deal was close to being hammered out. Reports suggest the French firm was eyeing a stake of around 30 per cent in the Saudi operator, with a future plan to take full control.

But this seems the most likely point on which talks ground to a halt.

Had the deal gone ahead, Vivendi would have been able to tap into the Middle East prospects while also providing Oger with the opportunity to team up with a successful European operator – France’s SFR.