France Telecom is confident of completing a deal to buy British mobile phone company Orange from Vodafone AirTouch by Monday after intensive weekend talks, its bankers said yesterday. France Telecom hopes to announce a deal on Monday, following talks with Vodafone over the weekend to finalise the price and terms of the acquisition.
Bankers see the French group's chances of success rising, with other potential bidders, notably Dutch KPN Telecom, not yet ready with the financing to counter what some are describing as a "knockout bid".
France Telecom and Vodafone declined to comment on whether the two had entered a period of exclusive talks, while KPN said it remained interested in Orange.
Analysts say Orange could fetch up to €50 billion (£39.4 billion), providing Vodafone with a much-needed cash boost. France Telecom has been pushing hard for short-term exclusivity on the sale, effectively freezing out other bidders during a period of intense talks with Vodafone, which must sell Orange as part of its takeover of Germany's Mannesmann.
Some investment bankers said that, tactically, Vodafone would only want to give France Telecom the most slender of windows in order to put pressure on the French group. While Vodafone would like to have the Orange issue settled and cash in its pocket, it does not have to sell to anyone at this stage and might stick to its original plan to relist it.
