France Telecom drops TeliaSonera bid; eyes emerging markets

France Telecom is eyeing the acquisition of smaller companies in the Middle East, Africa and Asia, after walking away from its bid for European telco TeliaSonera.

France Telecom launched fixed-line, mobile and Internet services yesterday in Niger under the  Orange brand and is considering further emerging markets acquisitions.

Finnish-Swedish company TeliaSonera rejected the French firm’s US$41.8 billion offer as too low. The French telco is known to be considering deals in Algeria and Vietnam, while analysts suggest the Egyptian operator Orascom Telecom is also being contemplated.

Orascom has significant operations in Pakistan and Bangladesh, which continue to exhibit significant growth potential.

Last month, France Telecom’s financial director Gervais Pellissier had said the French telco was considering raising the cash component of its offer for TeliaSonera, though this was not a popular decision amongst France Telecom shareholders.

The end of France Telecom’s pursuit of TeliaSonera follows the launch of the French telco’s Orange brand in Niger at the end of June, offering fixed, mobile and Internet to the west African nation.

The US$75.87 million licence breaks the fixed-line monopoly in Niger, while Orange will become the fourth mobile operator alongside Celtel Niger, Sahelcom and Moov (formerly Telecel Niger).