BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Friday, 29 November, 2002, 10:25 GMT
France Telecom rumours build
phone
France Telecom is planning to tackle its immense debts with a wide-ranging cost-cutting plan which will eat into its planned spending on advanced mobile phone services, reports say.

After two days of sharp stock market gains which boosted the company's share by 27%, Friday brought newspaper speculation that the company's third-generation mobile rollout programme is first in line for the chop.

Market speculation has already suggested that a 9bn euro (5.8bn; $8.9bn) government loan and 5bn euros in new bonds are part of the package.

The company has denied separate reports that it is also planning to lay off 45,000 workers in an attempt to cut costs.

France Telecom is expected to provide full details after the company's board meets on 4 December.

Thursday's share price rise built on gains earlier this week after France Telecom extracted itself from a costly partnership with German mobile operator Mobilcom.

Return to health

France Telecom stock, weighed down by concerns over its 70bn euro debt pile, has plummeted in recent months.

Even allowing for the recent recovery, France Telecom shares are down by nearly 60% since the beginning of the year.

The company went on a costly acquisition spree during the boom years of the 1990s in an attempt to build up a global presence.

The subsequent collapse of telecom company valuations as the technology bubble began to burst put the firm under severe financial pressure.

The French government, which still owns 55% of France Telecom, is expected to play a major role in restoring the firm's finances.

 WATCH/LISTEN
 ON THIS STORY
David Cleverley, telecoms consultant
"This looks like a particularly plausible rumour."
See also:

11 Jul 02 | Business
26 Jun 02 | Business
30 Apr 02 | Business
19 Apr 01 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes