France Telecom plays down Freeserve bid speculation

NEWS Speculation surrounding France Telecom making a bid for UK ISP Freeserve is increasing, despite Michel Bon, chairman of France Telecom, playing down the likelihood of a bid over the weekend. France Telecom's internet subsidiary Wanadoo is seen as a potential buyer for Freeserve, and has announced its intention to float with a valuation of at least E20bn (£12bn). However, in an interview on Saturday, France Telecom's chairman said while Wanadoo was looking to expand through acquisition, Freeserve did not appear to be the most attractive target. Shares in Freeserve fell by a quarter after acquisition talks with Deutsche Telekom fell through.