PARIS-France Telecom entered a framework agreement with Deutsche Telekom and Kreditanstalt fur Wiederaufbau that will reverse the cross shareholding agreement between the two European telecom companies.
The agreement calls for France Telecom to sell its 1.8-percent holding in Deutsche Telekom to KfW between Dec. 15 of this year and Jan. 31 of next year at a market price to be set at the time of closing within a range linked to the offer price of the public offering to be implemented by KfW.
France Telecom will have an option to purchase at any time between Jan. 1, 2002, and Jan. 31, 2003, the 2-percent stake of the company held by the German telecom company at a price linked to the then prevailing market price.
Deutsche Telekom will retain the right to sell its share in France Telecom on Jan. 31, 2003, under the same conditions.
