Feeds

My debt is my telco bond

France Telecom and KPN Telecom this time

  • alert
  • submit to reddit

New hybrid storage solutions

France Telecom and KPN Telecom are issuing bonds to cut massive debt.

France Telecom has gone for a record-breaking £2.2 billion convertible bond offer, taking advantage of what it says are "favourable market conditions" and bringing its convertible debt up to £3.9 billion. KPN Telecom has gone for a £3.1 billion rights issue.

Both deals have hit the companies' share price - France Telecom was down seven per cent and KPN Telecom down 17 per cent. A similar thing happened when British Telecom resolved to cut its debt in June with a £5.9 billion rights issue.

The two companies are among the most indebted in the world, thanks to the huge cost of 3G licences and the slump in the telecoms market - France Telecom owes just over £40 billion and KPN just under £14 billion.

And they join just about every major European telco in having to come up with debt reduction policies as operating losses and credit downgrades make the cost of holding debt even harsher. ®

Related Stories

BT share issue off and running
Deutsche Telekom soothes market with debt reduction plan

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.