France Telecom: French State To Remain Significant Holder
PARIS -(Dow Jones)- French telecom operator France Telecom, Monday said it has noted that the French state aims to remain a significant shareholder in the medium term, after the French government announced Sunday it was selling a 5% stake in the company.
"France Telecom takes note of the French government announcement and observes that the French state in its June 24 press release signaled its will to remain a significant shareholder (of the company) in the medium term," a France Telecom spokeswoman told Dow Jones Newswires.
The French Finance Ministry Sunday said it plans to reduce its stake in France Telecom by selling shares representing 5% of the company's equity. It will use the proceeds to reduce public debt, it said.
The French government intends to sell 130 million France telecom shares, with the possibility of increasing this to 180 million shares, or 7% of France Telecom's share capital, if sufficient demand is there.
The former monopoly operator is still the country's largest telecoms company by subscriber numbers.
As of May 31, the French state owned 32.39% of shares and 32% of voting rights. After the divestiture announced Sunday "it will remain France's Telecom largest shareholder," the company's spokeswoman said.
After the planned offer, the French government will still own, directly or indirectly, between 25.5% and 27.4% of France Telecom, according to the ministry's statement Sunday.
Newly-appointed Finance Minister Christine Lagarde said in a statement that the state "intends to remain a significant shareholder in France Telecom in the medium term."
France Telecom is Europe's second-largest telecoms company, behind Deutsche Telekom, in terms of subscriber numbers and revenue.
At 0932 GMT, France Telecom shares in Paris were trading EUR0.54, or 2.6%, lower at EUR20.46 in an overall negative market.
-By Geraldine Amiel, Dow Jones Newswires; +331 4017 1740; geraldine.amiel@dowjones.com;
(END) Dow Jones Newswires"
Posted to the site on 25th June 2007
