Wanadoo, the Internet subsidiary of France Telecom, is to make a stock offer for British Internet access provider Freeserve, valuing it at £1.6 billion, the two companies said today.
Wanadoo would offer 0.225 new Wanadoo shares for each Freeshare share, valuing the deal at £1.651 billion.
Trading in stock of Wanadoo and Freeserve had been suspended in London and Paris, amid speculation of a takeover announcement.
Wanadoo had said at the end of November that it was in talks to acquire Freeserve, which is Britain's most popular Internet service with more than two million subscribers.
