To sweeten the offer, France Telecom priced its share issue at 14.50 euros ($15.45) a 28% discount to the closing price on Friday. It is already assured that the government will take up the allocation for its 56% holding. France Telecom said its banks had reported strong investor demand. Breton told a news conference in Paris: I would like France Telecom to become a normal company as quickly as possible. Frank Dangeard, head of the company’s restructuring program, dismissed suggestions that the war in Iraq had forced it to bring forward the issue. The investors who are familiar with France Telecom, who knew about this operation, want it now. The decision to go ahead with this now was made independent of geo-political factors, he said.
The company said the cash raised would cut interest payments on debts by 500m euros ($533m) this year and between 700m and 800m euros ($742m and $852.8m) in 2004. A cost-cutting operation, mainly at mobile phone arm Orange, would save another 500m euros ($533m) annually from 2003.
Source: Computerwire
