French media conglomerate Vivendi has again been linked to a potential acquisition of Zain’s African assets. Following previous reports in African publications, French newspaper Les Echos today claims that Vivendi has submitted a non-binding offer, hiring Calyon to advise on the deal whilst also contacting its major creditor banks. The publication notes that Zain hopes to get between US$11 billion and US$12 billion, preferably in cash. Vivendi reportedly has the option of selling its 20 percent stake in NBC Universal for around US$6 billion or launching a capital increase of around EUR2 billion in order to fund any deal. Les Echos claims that Vivendi’s chief executive, Jean-Bernard Levy, is apparently adamant his company does not overpay for the assets.

Kuwait-based Zain has been rumoured to be inching closer to a sale of its 16 African mobile networks for several weeks now, noting in a statement last week that it has appointed UBS and others to review its options. VivendiAfrican businesses (which it only acquired in 2005 following its acquisition of Celtel) account for 16 of the group’s 23 markets and around 65 percent of the group’s customers. However, Africa only contributed 10 percent of group profit last year, and suffered a net loss in the first quarter. Zain has repeatedly stated a target of becoming a top ten global mobile operator by 2011, an ambition that is unlikely to be achieved if it were to sell off its African businesses.