Feeds

Orange now worth even less

France Telecom buys some armbands

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

France Telecom is still insistent on pushing through Orange's float but, amid fears that the whole thing could be a failure, are now thinking of hacking a sixth off the float price to make it successful.

It's all perception, see. If people are jittery and the price deemed too high, it will slip when launched and this will cause more people to sell. Then Orange is left with the shame of a poor float. So, by discussing cutting the float price to 9.5 euros from 11.5 euros (£6 from £7.33), France Telecom is essentially buying a pair of armbands to keep the company above the water when it's chucked into the stock market swimming pool.

Of course, now that everyone has heard that Orange's price might be cut, it will be difficult not to make the cut. Funny business this floating.

The odd thing is that Orange was getting some strong backing from big investors following its most recent reduction and offer of discounts. It was starting to look like it might pull it off. With this however, Orange has managed to make itself look more vulnerable than many thought it was.

It will also remove than intangible but incredibly useful aspect of trust and respect that everyone had for Orange before France Telecom took it over and Hans Snook upped sticks. Orange used to say what it would do and then do it. People like this in a company as much as they do in a person. But Orange is now starting to look like those doddery people who can never decide what they want in a restaurant.

Shame. ®

Related Stories

Orange gets cheaper by the day
Snook is off

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.