FRANCE TELECOM AND DEUTSCHE TELEKOM ABANDON ANY IDEA OF PARTNERSHIP.

The French and German telecommunications groups France Telecom and Deutsche Telekom have abandoned all moves towards setting up a partnership, agreeing to relinquish the shares each group holds in the other. The agreement was announced on 23 May in a France Telecom press release and is expected to be formally signed within a month. Under the agreement, between 15 December 2000 and 31 January 2001, France Telecom will sell off its 1.8% stake in Deutsche Telekom to Kreditanstalt f?r Wiederaufbau (KfW), a German state-run bank which already holds 12.6% of the German state's stake in Deutsche Telekom. The price of the shares will be set in line with the prevailing market conditions when the agreement is formally signed, but is likely to remain within the range set in the third round of privatisation of the German telecom company. KfW has announced that it will sell off around 200 million shares (or 6.6% of Deutsche Telekom's capital), which it will release onto the...

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