France Telecom rules out rights issue

French government supports Bon...

By Kate Hanaghan, 28 May 2002 09:15

NEWS France Telecom will not resort to a rights issue in order to reduce its debt mountain valued at more than £40bn. The French government owns more than 50 per cent of the company and has come down on the side of executive chairman Michel Bon in ruling out the possibility of a rights issue. French newspaper, Les Echos claims the decision was made at meeting between Bon and France's Finance Minister last Friday. A rights issue would increase France Telecom's capital but the company is concerned it would have a detrimental effect on its share price.

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