French incumbent France Telecom is set to convert E4bn of loans to its Spanish subsidiary, Orange Spain, into shares, according to local media.
The Spanish newspaper Expansion reported yesterday that the liabilities of Orange Spain will be reduced by 87%…
French incumbent France Telecom is set to convert E4bn of loans to its Spanish subsidiary, Orange Spain, into shares, according to local media.
The Spanish newspaper Expansion reported yesterday that the liabilities of Orange Spain will be reduced by 87% to E600m.
A spokesman for Orange Spain confirmed the information but would not give any further comments. Orange in France also would not give any comments.
According to Expansion, the reason for the decision was the importance that France Telecom gives to its Spanish business, with Spain being its third largest market in the world.
Orange Spain is also reportedly facing tough competition from established players like Telefonica’s Movistar and Vodafone, as well as emerging operators like Telstra.
Orange Spain is wholly owned by the France Telecom group.
