France Telecom dismisses Deutsche Telekom merger rumors

France Telecom (NYSE: FTE) may be looking for ways to diversify through acquiring assets in emerging markets, but one deal it's not going to make is a merger with Deutsche Telekom (XETRA: DTE.DE).

Rumors about a potential marriage of the two European telecom superpowers emerged yesterday after Deutsche Bank (NYSE: DB) increased its stake in France Telecom to over 5 percent.

The CFE-CGC/UNSA union said in a Reuters article that the Deutsche Bank's move was a "profound change in the current balance of the shareholding" and "perhaps a precursor to consolidation operations that are liable to change the world of telecoms in Europe."

Given France Telecom's employee morale issues--a problem that spurred multiple suicides at the service provider in the past year--the union wanted to hold extraordinary meeting with management to discuss shareholder structure and how it will "protect France Telecom's independence."

However, a France Telecom spokeswoman immediately dismissed rumors of a potential deal between the two service providers, while Deutsche Bank would not comment.

"There is no plan to bring together France Telecom and Deutsche Telekom," the spokeswoman said.

For more:
- Reuters UK has this article

Related articles:
Prosecutor to investigate France Telecom suicides
Report: Deutsche Telekom searching for U.S. partners
Orange dropped T-Mobile UK takeover to push through merger deal

Suggested Articles

Like most telcos, there are challenges ahead for CenturyLink, but one area it can bank on is its fiber network both here and abroad.

With the surge of data-hungry gamers battling for the best experience, how will your network rise to the challenge?

Listen now.

It's going to be fun watching the epic battle unfolding between hedge fund giant Elliott Management and massive conglomerate AT&T.