(Associated Press via NewsEdge) French media and telecommunications group Vivendi said it is in talks with Neuf Cegetel shareholders.
French newspaper Le Figaro reported its 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.
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.
Vivendi and Neuf Cegetal have presented a merger plan to the French Finance Ministry, Le Figaro reported.
Neuf Cegetel declined to comment.
Â© 2007 The Associated Press
Â© 2007 Dialog, a Thomson business. All rights reserved