So far pricing has been the main issue concerning the float, due to a significant retreat from initially planned levels. Last week the share price was reduced by almost a fifth. However, with the price now set at E9.50, France Telecom is on track to generate E7.2bn and Orange would reach a valuation of E48.5 bn.
France Telecom’s Chief Executive, Michel Bon explained at a press conference that current market trends had caused the revaluation, and prompted the possibility of postponement. When the road is icy, you leave the Rolls Royce in the garage, he said. Bon also commented that there are no plans for further sales of Orange shares in the near future.
For some time, all eyes will be on Orange. Not only will British Telecom, Deutsche Telecom and KPN be interested to see if their proposed flotation plans are viable, but investors will also be keen to see if the IPO is more successful that France Telecom’s last one. Last year the company sold part of Wanadoo, which has since seen shares halve in value.
