France Telecom has announced plans to purchase the approximate 14% stake in Orange SA which it does not already own. The company has reportedly said that it plans to submit an exchange offer for Orange shares to French regulatory authorities, valuing the deal at EUR 7.1 billion. The announcement represents a change in policy for France Telecom, which has been making efforts to reduce its debt level. According to press reports, the company justified the move based on the access, which it would provide to Orange's cash flow.
In its H1 2003 results, Orange reported total revenues of EUR 8.615 billion, up 6.9% compared to the same period in 2002. Operating income grew 68% to EUR 2.086 billion. The Orange Group subscriber base increased to 45.6 million according to Orange, reflecting 1.3 million net additions during H1 2003
