Flotation values Orange at up to £41.3bn sterling

Mobile phone firm Orange will be valued at up to £41

Mobile phone firm Orange will be valued at up to £41.3 billion sterling when it partially floats next month - significantly less than the £100 billion for which owner France Telecom hoped when it bought the firm last year, it emerged today.

Orange said it would be floated in a price range of 11.5 euros to 13.5 euros per share.

This would give Orange a market value of 55.2-54.8 billion euros.

But Orange is to offer private investors a discount in the hope of attracting interest from smaller investors willing to take a punt on the Stock Exchange.

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France Telecom is to float 15% of Orange on the Paris and London stock exchanges early next month.

Conditional trading is expected to start on February 12, with unconditional trading due to begin three days later.

The minimum investments for private buyers will be £250, with no maximum limit set.

The share offer will be launched tomorrow in the UK, France and Germany and later this week in Italy.

The lower than expected value is believed to be a reaction to the extent to which telecoms stocks have fallen out of favour with investors in recent months, and also a move by Orange to spark interest in the float.

PA