PARIS-In addition to its first-half operating results released Monday, France Telecom said it will buy the remaining 13.7-percent stake in mobile subsidiary Orange that it does not already own for $7.7 billion. The move will allow France Telecom to gain access to all of the cash generated by Orange.
France Telecom is offering 11 of its shares for every 25 Orange shares. Minority shareholders in Orange will have a 12-percent stake in France Telecom if they accept the offer.
In its first-half 2003 results, Orange said revenues grew by 9.4 percent to$9.3 billion. The company’s net income was nearly $3.6 billion, and it said it reduced net debt by 32 percent since year-end 2002. France Telecom intends to use Orange’s strong cash flow to reduce its high debt margin.
In late July, a government bill gave France Telecom the option to buy out minority shareholders of Orange and Wanadoo, France Telecom’s Internet unit.
