The future of Orange, Britain's youngest mobile phone company, was thrown into doubt yesterday after dealers said key Hong Kong shareholder Hutchison Whampoa had placed a 5 per cent stake.
A fall in Orange's shares accelerated during the afternoon, despite stronger than expected full-year results, puzzling analysts until dealers said Goldman Sachs had placed around 50 million shares with institutional investors at 865p.
The placing, which some analysts interpreted as a move by Hutchison to cushion an economic crisis in Asia, takes the Hong Kong conglomerate's holding in its main European investment vehicle to 44.9 per cent from 49.9 per cent.
And it raised questions whether the company might sell more. "Orange is clearly not as bid proof as everyone thought it was," said one analyst, tipping potential predators such as Germany's Mannesmann. Orange shares closed 5.7 per cent lower at 904p.
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