FT dismisses suggestion of merger with German counterpart

7 Sep 2010

In a move to assuage the concerns of anxious union officials, France Telecom (FT) has dismissed suggestions that it could seek a structural merger with its German rival Deutsche Telekom (DT), Reuters reports. Union officials’ concerns were raised after the Deutsche Bank raised its stake in the French telecoms group to over 5%, calling it a ‘profound change in the current balance of the shareholding.’ A spokesperson for the CFE-CGC/UNSA union went one stage further to suggest the move was ‘perhaps a precursor to consolidation operations that are liable to change the world of telecoms in Europe.’ However, FT has since responded by saying that to date, the pair have only discussed ‘specific topics as the need arose’, meaning the tie-up between Orange UK and T-Mobile UK late last year, and that there is ‘no plan to bring together France Telecom and Deutsche Telekom.’

France, Germany, Deutsche Telekom (DT), Orange Group