NEW YORK-France Telecom’s partial privatization through an initial public offering of common stock, priced Oct.7, should raise $8.2 billion for the federal government, Dominique Strauss-Kahn, finance minister, said.
The government hopes that selling 20 percent of France Telecom will allow the telecommunications giant to compete better with its international rivals when the European phone market is deregulated early next year.
Shares in the state-owned company are being offered to the public for $30 each and to institutional investors for $31, she said.
Institutional demand totaled about $58 billion of stock, far exceeding the amount on offer. Due to heavy investor demand, Strauss-Kahn said the number of France Telecom shares has been raised by 10 percent over initial targets.
Institutional investors will receive 115 million shares, with retail investors receiving 94 million shares.
Trading of France Telecom IPO stock will begin Oct. 20 in Paris and New York.
