France: State encourages Orange outreach to international telcos

French officials are reportedly encouraging domestic wireless mergers, but have asked top telco Orange to reach out to cross-boarder EU peers to form alliances, say reports.

Economy Minister Arnaud Montebourg spoke at the National Assembly to discuss the industry following the sale of SFR, sold by Vivendi and sparking a bidding war between Numericable and Bouygues.

SFR was sold for more than $23 billion, say reports, to Numericable.

Since, more changes in the wireless sector are expected as Bouygues is rumored to be discussing a deal with Iliad, though officials denied it this week.

”Consolidation is a necessity in France and in Europe,” Montebourg said. “We will work actively to encourage it.”

While the economic chief said a deal between Iliad and Bouygues would be encouraged, Orange is being asked to seek out partnerships abroad; the company’s largest shareholder is the government, which holds a 27 percent stake in the company.

Full Content: Businessweek

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