France Telecom seeks to exit Switzerland, Portugal and Austria
29 Jul 2011
France Telecom, the country's largest mobile operator, is once again planning to sell its Swiss unit and possibly it's Portuguese and Austrian business as well as part of its recently launched portfolio review.
The announcement floowed the Paris-based telecom major saying that net profit fell to €1.95 billion for the first six months from €3.73 billion in the same period last year.
The company, under its CEO Stephane Richard, had recently launched a strategic review of its assets portfolio, with an emphasis on European markets. France Telecom yesterday said that its board will decide whether to go ahead with a sale depending on the offers it receives and added that the company has yet not started a sale process.
"No talks have yet begun on Switzerland, the process is starting today," said Gervais Pellissier, the company's CFO. "We are working with the other shareholders in Austria and Portugal to find ways to alter our stakes there."
France Telecom, Europe's fourth largest telecoms operator by market capitalisation, wholly owns Orange Switzerland, which may fetch around €1.5 billion, according to analysts and its 20 per cent stake in Portugal's Sonaecom and its 35 per cent of Austrian mobile operator One may rake in together €500 million.
"We said we would not remain shareholders in assets where we have minority stakes in the long term such as in Austria and Portugal ... we are working with the other shareholders about ways to alter our stakes there," Pellissier said.
