(Telecompaper) Bouygues Telecom has raised its takeover bid for SFR, beating an earlier offer from Altice accepted by Vivendi. Bouygues raised the cash element of its bid by EUR 1.85 billion, to a total EUR 13.15 billion, plus a 21 percent stake for Vivendi in the new company created from merging Bouygues Telecom and SFR. This is EUR 1.4 billion more than the offer from Altice, the owner of cable operator Numericable. Bouygues said it was convinced of the "industrial strength" created from a merger of its telecom operations and SFR, which would generate EUR 10 billion in synergies, while reducing the French market to three mobile networks from four. Bouygues has pledged to sell its mobile network to smaller rival Free Mobile if its offer for SFR is accepted. The new offer values SFR at EUR 17.4 billion factoring in all of the synergies, of which EUR 16.3 billion come from the agreement with Free. The new entity would be listed on the stock market as soon as the merger is completed, thus giving Vivendi an opportunity to monetise the remainder of its interest. Bouygues has gained the backing of key shareholders to increase its bid, including the bank Caisse des Depots et Consignations, the Pinault family and JCDecaux. They have agreed to acquire an interest or to strengthen their existing interest in the new company. Under the new offer, Bouygues would hold 67 percent in the merged company, versus 52 percent in the previous offer.