FT plans EUR3bn share sale

1 Sep 2005

France Télécom has announced a EUR3 billion share issue to finance its recent acquisition of Spanish mobile operator Amena. EUR3 billion of new shares will be sold at a price of EUR22.63 each; shares were trading at EUR24.28 yesterday afternoon. Existing shareholders will be offered one warrant for each outstanding share, and 37 warrants can then be used to buy two new shares. The sale will dilute the French government’s stake in the country’s former monopoly telco from 34.9% to 33.1%, just enough to retain a blocking minority at shareholder meetings. France Télécom announced plans in July to buy an 80% stake in Amena – Spain’s third largest wireless operator – for EUR6.4 billion.

France, Orange Group