| France Telecom SA | |||
| Ticker: | FTE | 6, place d'Alleray | |
| Exchange: | New York Stock Exchange | Paris, FRANC | |
| Industry: | Service (SIC Code 4812) | ||
| Type of Shares: | American Depositary Receipts | Filing Date: | 4/21/97 | |
| U.S. Shares: | 211,000,000 | Offer Date: | 10/20/97 | |
| Non-U.S. Shares: | 0 | Filing Price: | - | |
| Primary Shares: | 0 | Offer Price: | $31.69 | |
| Secondary Shares: | 211,000,000 | Gross Spread: | $0.71 | |
| Offering Amount: | Selling: | $0.47 | ||
| Expenses: | - | Reallowance: | ||
| Shares Out After: | - |
| Manager | Tier | Phone |
| Merrill Lynch & Co. | Lead Manager | (212) 449-4600 |
| Lehman Brothers Incorporated | Co-manager | (212) 526-8100 |
| Paribas Capital Markets | Co-manager | (212) 841-3050 |
| Issuer's Law Firm: | Shearman & Sterling |
| Bank's Law Firm: | Cleary, Gottlieb, Steen & Hamilton |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 12/31/96 | ||||
| Revenue: | $26,030.00 | Assets: | $45,553.00 | ||
| Net Income: | -$5,834.00 | Curr Assets: | $8,940.00 | ||
| EPS: | -$5.83 | Liabilities: | $32,045.00 | ||
| Prior EPS: | Curr Liabilities: | $17,022.00 | |||
| Cash Flow/Oper: | $9,579.00 | Equity: | $13,508.00 | ||
| Cash Flow/Fin: | Cash: | $552.00 | |||
| Cash Flow/Inv: | Working Cap: | -$8,082.00 | |||
| Business Description |
| The company is the principal provider of telecommunications services in France and the world's fourth largest telecommunications group on the basis of 1996 revenues. The company's consolidated net revenues in 1996 totalled FF 151,259 million, of which 67.6 percent were derived from its fixed line telephony business. The company operates a network of approximately 33 million telephone lines, including 1.3 million ISDN voice channels, connected to homes and businesses in France. The company's network is among the most technologically advanced major networks in the world, with nearly 100 percent digital transmission and 93 percent digital local switching. In France, relatively large percentages of both business and residential customers express a high level of satisfaction with the quality of France Telecom's services. To capitalize on its advanced network and high level of customer satisfaction, the company has streamlined and decentralized its operating structure to improve its custoemr focus and is rapidly rebalancing its rates to reduce domestic and international calling tariffs while increasing monthly subscription charges. The company is also in the process of simplifying its rate structure. |
| Business Plan |
| The company seeks to promote and benefit from growth in the French, European and global markets for telecommunications services spurred by increased competition and to this end has established four strategic priorities for the coming years: expanding network usage and services, reinforcing competitiveness, increasing productivity and emphasizing international development. To implement its strategy, the company is planning to (I) Expanding Network Usage and Services, (ii) Reinforcing Competitiveness, (iii) Increasing Productivity and (iv) Emphasizing International Development |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for general corporate purposes. |