The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Seeing red over Orange

France Telecom has set a troubling precedent for all those telecom companies that were desperately hoping to turn to the equity markets to raise funding and reduce their leverage.

The dust has barely had time to settle on France Télécom's IPO of Orange. And yet it has already earned its place in the history books as one of the most significant deals of 2001.


It has set a troubling precedent for all those telecom companies that were desperately hoping to turn to the equity markets to raise funding and reduce their leverage. As the Orange price fell even after the lead banks had reduced the indicative offer price, anxious chief executives at telecom companies were asking their finance directors to somehow produce a refinancing plan B.


This was a deal that flopped and that hurt. That's evident from the blatant attempts of those involved to pass the buck in the days that followed the IPO on February 13. Rather than concentrating on exactly what went wrong with the deal, most are busy pinning the blame on each other.



Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree