Vivendi talking with Neuf Cegetal on possible merger

French media and telecommunications group Vivendi said it is in talks with Neuf Cegetel shareholders, an Associated Press report said.

The Associated Press report quoted local media as saying that Vivendi's SFR mobile-phone unit is negotiating a 5 billion euros ($7.2 billion) bid.

SFR has amassed 40.5% of Neuf Cegetel.
A spokesperson for Vivendi confirmed the talks but declined to comment further, the report said.

A merger would join France's second largest cell phone company with the country's second largest internet service provider, helping SFR compete with France Telecom's mobile phone unit Orange, the report said.