France Telecom steps up debt drive
12 April 2012
FRANCE Telecom took a fresh step to cut its e63bn (£41bn) debt mountain with a placing of convertible bonds in silicon chip maker STMicroelectronics.
The group, which owns Orange and Freeserve in Britain, will raise e500m through the placing of convertibles equal to 2.7% of ST's enlarged equity. The deal is co-managed by Credit Suisse First Boston, ABN Amro Rothschild, Deutsche bank, Merrill Lynch and SG Investment Bank.
An e800m sale of cable TV subsidiary Casema to Liberty Media is imminent, and the French government, which owns 55.4% of Telecom, has hired bankers Lazard to plan further debt cuts.
