The French government set a discounted price for the sale of a minority stake in France Telecom, yesterday expecting to generate 42bn francs of revenue. Finance Minister Dominique Strauss-Kahn said the state was selling 209 million shares in France Telecom to institutional investors is 187 francs and 182 francs for individual investors. The price came in at the high end the government’s previously announced range of 170 to 190 francs a share, as a result of strong demand both from individual and institutional investors. The sale represents just over a quarter of France Telecom, Europe’s second-biggest telephone Company in a sale aimed at boosting the government’s coffers as well as allowing Telecom to raise capital on the markets and swap shares with key partners. Under the government’s plan, 115 million shares will go to institutional investors, raising 21.5bn francs: 94 million shares to individuals for 17.1bn francs and employees will be able to buy 23.2 million shares at a discount of as much as 20% to other individual investors. Currently, the unofficial gray market has priced the share at between 200 to 210 francs. Investors have until October 14 to reserve the shares. They will be allocated Friday, October 17. The pre-marketing period of the offering to institutional investors closes today.
