France Telecom Agrees On Terms for Acquisition of Stake in E-Plus
PARIS--(BUSINESS WIRE)--Oct. 4, 1999--France Telecom announced today an agreement on the terms of the acquisition from Vodafone AirTouch plc of its 17.24 percent equity interest in the German mobile operator E-Plus Mobilfunk GmbH. At DM 3.4 billion (1.7 billion euros), the agreed acquisition price valuates 100 % of E-Plus equity at DM 19.8 billion (10.1 billion euros).
Completion of the acquisition is planned for the beginning of the year 2000. It is subject to the other E-Plus shareholders waiving their pre-emptive rights and to the usual regulatory approvals.
The other E-Plus shareholders are the German groups VEBA and RWE, which together hold 60.25 percent of the equity, and the American telecommunications operator Bell South, which owns 22.51 percent of the equity.
France Telecom intends to invite each of the other E-Plus shareholders to either sell their stake to France Telecom, or conclude a partnership agreement on the joint management of the company.
Created in 1994, E-Plus is the third largest mobile operator in Germany. It currently has 3 million subscribers, representing a 16 percent market share.
France Telecom (NYSE: FTE - news) is one of the world's leading telecommunications carriers, with 1998 consolidated operating revenues of 24.6 billion euros (first-half 1999: 13 million euros) and operations in more than 50 countries. France Telecom provides businesses, consumers and other carriers with a complete portfolio of solutions that spans local, long-distance and international telephony, data, wireless, multimedia, Internet, cable TV, broadcast and value-added services. France Telecom held an initial public offering in October 1997 and is listed on the Paris and New York stock exchanges. |
