France Telecom is to launch a €15 billion share capital increase, a long-awaited move to raise funds to rescue the massively indebted state-controlled company.
France Telecom plans to sell new shares at €14.50 each, the group said in a statement.
The state will subscribe to the capital increase on a pro rata basis of its 56.4% stake, accounting for €9 billion of the issue, while the remaining €6 billion will be sold on the open market.
The company said the market operation was entirely underwritten by banks. Based on France Telecom's €20.20 closing share price on Friday, the new issue was expected to result in a dilution of France Telecom's share price to €17.30 per share.
France Telecom earlier this month posted a record 2002 net loss of €20.7 billion.
