Bouygues borrows billions

French construction and communications group Bouygues is to borrow $5.3bn.

It must find the cash to beat the 31 January 2001 deadline for applications to join next year's auction of French 3G licences and to fend off Telecom Italia's efforts to extend its 10.8 per cent holding in the mobile operator Bouygues Telecom. Two weeks ago, Bouygues broke off talks with Telecom Italia, which hoped to lift its stake in Bouygues Telecom. Now the French company has said that it is in talks with a number of banks. Bouygues had already made it clear that it wanted to keep a majority control of its mobile subsidiary. When it ended talks with the Italian telco, it gave no reason, saying only that it was already talking to a 'restricted number of interested companies'. Around $2.08bn of the loan will be to refinance an existing loan. Bouygues said that investors in Bouygues Telecom have contributed $4.6bn, which can be used to develop the new network. The French company is looking for eight to ten year term loans.