France Telecom: Examining Acquisition Of Amena

PARIS -(Dow Jones)- France Telecom (FTE) is examining the acquisition of Spanish mobile telephone operator Amena, a company spokeswoman said Tuesday.

The spokeswoman said Paris-based France Telecom is conducting due diligence on Amena, estimated to be worth EUR9 billion and a part of Grupo Auna SA.

The spokeswoman said France Telecom's future plans regarding Amena will be determined by the outcome of the due diligence process.

The spokeswoman said any acquisition won't compromise France Telecom's ability to meet its debt targets, increase its dividend and be accretive for free cash-flow per share.

Europe's second largest telecoms operator, which currently has fixed and broadband operations in Spain, is looking to round out its portfolio in one of its core European markets.

Amena is part of the Grupo Auna SA (AUNA.YY) telecommunications company.

France Telecom chairman Didier Lombard mandated a due diligence process of the mobile assets now that the purchase of these operations separate from the fixed-line has become "feasible," the France Telecom spokeswoman said.

-By Kenneth Maxwell, Dow Jones Newswires; 33-1-4017 1740; kenneth.maxwell@dowjones.com

(Brian Lagrotteria contributed to this article.)

(END) Dow Jones Newswires"

Posted to the site on 19th July 2005