French conglomerate Vivendi issued a statement yesterday confirming widespread reports it is in talks to buy a controlling stake in the African mobile phone businesses of Zain, the Kuwaiti telecoms group, as the French company seeks to ramp up its exposure to emerging markets. “This acquisition would enable Vivendi to capitalise on its successful experience of developing mobile telephony in Africa,” it noted. “However at this stage there is no certainty that the discussions currently in progress will lead to a successful outcome.”

As reported yesterday, Vivendi is keeping a very cautious eye on costs. “Vivendi will examine this investment according to its usual profitability criteria and will adhere strictly to its usual principles of financial discipline. In particular, Vivendi attaches the utmost importance to keeping its credit rating and its dividend at their current levels and will continue to work in the interests of its shareholders.” A Financial Times report claims that Vivendi has already made an informal offer to Zain this week, valuing the African assets at US$10 billion to US$11 billion.