France Telecom cuts Orange float price

France Telecom says it has cut the price range for the initial public offering of Orange to between 9.5 euros and 11 euros.

This is equivalent to between £6.05 and £7.

It says it has made the decision to cut the price range from between 11.5 euros (or just over £7.30) and 13.5 euros (around £8.60) based on difficult market conditions.

France Telecom says it has decided to adjust the price range "in order to guarantee the success of the listing of Orange shares" and to boost the prospects for the later evolution of the shares on the market.

It is also delaying the closing of the offer period in France, the UK, Germany and Italy until 5pm on February 9, while the closing of the global placement period remains set for February 9.

The final price of the Orange shares will be set on February 13, and shares will begin trading the same day.

France Telecom says institutional demand for the new shares has been strong, with last Monday's convertible bond offer "several times oversubscribed".

A price range for Orange shares of between 11.5 euros and 13.5 euros would have valued the whole of the mobile phone division at between $55.2b euros and $64.8b euros (between £35.1b and £41.2b).

But a cut along the lines announced today will slice around $10b euros

(or £6.3 b) off the company's value.