Deutsche Bank stake in France Telecom reduced: regulator

7th September 2010, Comments 0 comments

A stake in France Telecom held by Deutsche Bank of Germany has been cut back to below 5.0 percent, the French market regulator said Tuesday, shortly after it had risen above that threshold to the consternation of France Telecom employees.

The French financial market regulator, the AMF, said the reduction resulted from off market sales of France Telecom shares.

It said that as of August 31 Deutsche Bank, either directly or indirectly through its subsidiaries, held around 86 million France Telecom shares, or 3.25 percent of the capital.

In addition, the bank held options to acquire 8.9 million additional shares.

Deutsche Bank's share in France Telecom a week earlier, on August 25, had risen to 5.07 percent, eclipsing the roughly 4.0 percent held by France Telecom workers.

At 4.0 percent, workers accounted for the second largest France Telecom stakeholder after the state, which has an interest of 26.97 percent.

News of the increase in the Deutsche Bank stake unsettled the CGC-Unsa trade union, which feared that it could lead to an alliance with France Telecom's German rival Deutsche Telekom, in which Deutsche Bank is a shareholder.

But France Telecom has insisted that such a scenario had not been considered.

© 2010 AFP

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