Orange Unit’s Share Sale to Test Waters

France Telecom will provide the first big test for how European telecommunications share sales will fare in 2001 when it offers at least $6.4 billion of stock in its wireless unit, Orange, investors said. Chief Executive Michel Bon has said France’s No. 1 phone company might halve its original goal of raising $12 billion. That’s after Telefonica Moviles, Telekom Austria and others scaled back equity offerings this year amid falling stock prices. “It would be a disaster for all the other telecom companies that plan similar sales” if the offering doesn’t go well, said Peter Braendle who helps oversee $24.8 billion of European stocks at Swissca Portfolio Management. Royal KPN, British Telecommunications and Deutsche Telekom, which lost more than half their market value this year, are expected to sell shares in their wireless units to reduce debt and finance further expansion. The Orange unit sale plan got off to a rocky start after the company’s bankers insisted on the right to approve any research on the mobile-phone company. Dresdner Kleinwort Benson, Morgan Stanley Dean Witter & Co. and Societe Generale are coordinating the group of banks selling the Orange shares. Order taking is expected to start in late January, and the shares will begin trading in February. Meetings with investors could start early in January.