Once could be forgiven for checking that it is indeed 2010, having seen French incumbent France Telecom spend most of today denying large-scale European M&A rumours.
First, it had to issue a statement promising French unions there would be no takeover by…
Once could be forgiven for checking that it is indeed 2010, having seen French incumbent France Telecom spend most of today denying large-scale European M&A rumours.
First, it had to issue a statement promising French unions there would be no takeover by German counterpart Deutsche Telekom, recalling grandstanding talk in the 1990s. Later, it had to tell the market that there would be no resuscitation of its efforts two and a half years ago to buy Sweden’s TeliaSonera.
The DT speculation started when the French stock market regulator announced that Deutsche Bank’s stake in FT had surpassed the 5% threshold, prompting the CFE-CGC/UNSA union to describe this “profound change” as a possible “precursor to consolidation transactions” that could alter the face of European telecoms. The union then went further, demanding that the company’s management expressly explain to staff “the shareholder structure” as well as the steps that would be taken to “protect France Telecom’s independence”.
Later in the day, Dow Jones reported that the French stock market regulator said that Deutsche Bank’s 5.07% stake in FT had fallen below the 5% threshold, to 3.25% with as many voting rights on the last day of August, having sold shares outside the market.
The origins of the talk around TeliaSonera, deemed “totally unfounded” by a France Telecom spokesperson speaking to Dow Jones, was less clear.
When setting out his three-year strategy earlier this year, incoming CEO France Telecom Stephane Richard reiterated the company’s focus on emerging markets and content. He later specified that France Telecom was no longer interested in TeliaSonera
