Paris: State-controlled France Telecom said on Thursday that it intends to list 9.7 per cent of shares in its Internet subsidiary Wanadoo on the Paris stock exchange on July 18. The shares would be priced at 17-20 euros, which would give the entire Wanadoo group a value of 17-20 billion euros (16.1-19.0 billion dollars).France Telecom had indicated in March that it would float shares in its Internet activities in July or September. The news initially sent France Telecom shares higher, but an hour after the market opened they were down 2.83 percent at 154.40 euros.
Figures released on Thursday showed the new Wanadoo unit making a pro forma operating profit of 39.6 million euros in 1999 on turnover of 810.3 million euros. In addition to the Internet access operation under the Wanadoo name, the new unit will include France Telecom's fast-growing online directory service Les Pages Jaunes and specialist services such as Mappy, which offers travel and tourist information and detailed route plans for European travel by road.
French and overseas institutional investors will be offered some 54 million shares in Wanadoo, and 36 million will be available to individual investors. France Telecom and Wanadoo staff will be offered some 10 million shares. Wanadoo is the leading French mass market internet access provider with some 1.8 million customers and a 39 per cent market share.
The Internet access operation had revenue of some 97.6 million euros last year. France Telecom is listing Wanadoo now to increase growth and to position itself to play a full part in the current consolidation of the European Internet market, France Telecom chairman Michel Bon said in a statement.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.