European Telecoms companies were yesterday reconsidering plans to list their mobile phone subsidiaries after France Telecom's decision to cut its valuation of Orange by €10 billion ($9.3 billion).
British Telecommunications, Deutsche Telekom and KPN of the Netherlands publicly restated their desire to follow France Telecom and attempt to offer their own mobile groups in the next few months.
However, advisers involved in the planned initial public offerings said all were drawing up contingency plans. They fear Orange's unexpected price cut will make it impossible to raise as much money as previously hoped for.
The telecom groups are heavily indebted, having bid billions to win third generation mobile phone licences.
Mr Jean-Louis Vinceguerra, the French finance director, last night said the decision to cut the valuation range of Orange from between €55.2 billion and €64.8 billion to between €45.6billion and €52.8 billion meant the offer was fully subscribed and certain to go through on Tuesday.
BT, which today announces its third quarter results, has said that it is committed to reducing its debt by £10 billion sterling to £20 billion largely through the partial listing of BT Wireless.
One person involved in the restructuring said management was working on a plan B to allow the company to maintain its credit rating without offering BT Wireless.
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