FT, DT asset swap imminent, paper says

24 May 2007

According to unconfirmed reports in the French newspaper Les Echos, a deal between France Télécom (FT) and its German counterpart Deutsche Telekom (DT) to buy and sell subsidiary operations in the Netherlands and Spain could take place before the end of the week. The transaction could see DT buying the French telco’s Dutch mobile arm Orange Netherlands for EUR1.6 billion, including debt. In return, FT would pay roughly EUR300 million for DT’s Spanish internet unit (T-Online Spain (formerly Ya.com), the newspaper reports without citing sources. FT recently confirmed rumours that it is in talks over the potential acquisition of the Spanish subsidiariy, saying: ‘As indicated at the presentation of our 2006 results, France Télécom confirms it could be interested in the possible acquisition of the Spanish internet access provider Ya.com’, adding that ‘discussions are underway’.

Netherlands, Spain, Deutsche Telekom (DT), Orange Group, Orange Netherlands