France Telecom and Deutsche Telekom To Unwind Cross Shareholding

PARIS, May 24 -- France Telecom has entered into a Framework Agreement with Deutsche Telekom and Kreditanstalt fur Wiederaufbau (KfW) in conformity with a plan to unwind cross shareholding between France Telecom and Deutsche Telekom.
Under the agreement France Telecom must sell its 1.8 percent holding in Deutsche Telekom to KfW between December 15, 2000 and January 31, 2001 at market price. The market price will be within the range of the offer price set by KfW at the time of the Public Offering.
Between January 1, 2002 and January 31, 2003 France Telecom will have the option to purchase the 2 percent of its shares held by Deutsche Telekom at the going market price. On January 31, 2003 Deutsche Telekom will have the option to sell its shares in France Telecom under the same conditions.