An announcement will be made today, the sources said, adding that Vodafone and France Telecom were negotiating the final terms yesterday. France Telecom is expected to pay as much as US$45 billion, including about two-thirds in cash, assume about US$9 billion in debt and pay the rest in stock, people familiar with the talks said earlier.
The Paris-based company will combine its mobile assets with those of Orange and sell shares in the entity on the London, Paris and Nasdaq stock exchanges, the sources said. Executives at France Telecom, Vodafone and Orange declined to comment.
The takeover will make France Telecom Europe's third-biggest mobile operator and strengthen operations in one of its fastest-growing divisions. As part of the accord, the company will get a license to offer fast Internet access on mobile phones in Britain. By selling Orange, Vodafone satisfies regulatory demands tied to its acquisition of Mannesmann in February.
Orange chief executive Hans Snook and Graham Howe, deputy chief executive, will lead France Telecom's mobile operation, agreeing to stay on as a result of the French company's plan to sell shares in the unit, the sources said.
Analysts have said a sale of shares in France Telecom's mobile business could value the unit at as much as US$146 billion.
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