France Telecom Forms Procurement Joint Venture with Deutsche

France Telecom-Orange (FTE) has announced today that it has signed a non-binding term sheet with ...  More »

France Telecom-Orange (FTE) has announced today that it has signed a non-binding term sheet with Deutsche Telekom AG after both companies agreed to combine their procurement activities of customer equipment, network equipment, service platforms and - starting with four pilot-projects - IT-Infrastructure in a 50-50 joint venture. The term sheet will be the basis for final contracts yet to be negotiated. The JV will have two operational units in Bonn and Paris and will be staffed by employees from the respective procurement departments of both groups that already deal with purchasing customer equipment, network technology, service platforms, IT-Infrastructure and procurement engineering. The companies are currently in talks with unions and its social partners regarding the necessary set-up processes. The final agreement is expected to be signed in the coming weeks, and remains subject to the necessary board approvals at FTE and Deutsche Telekom . Additionally, the creation of the procurement joint venture will be subject to antitrust clearance. Shares for FTE are down 3.32% to $21.84.  « Less