This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-35958991

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Telecom shares wobble as Bouygues-Orange deal collapses Telecom shares wobble as Bouygues-Orange deal collapses
(about 4 hours later)
European telecom stocks have stumbled after a deal to create France's biggest telecoms group collapsed.European telecom stocks have stumbled after a deal to create France's biggest telecoms group collapsed.
French operators Orange and Bouygues Telecom ended talks late on Friday over the reported €10bn (£8bn) merger.French operators Orange and Bouygues Telecom ended talks late on Friday over the reported €10bn (£8bn) merger.
Bouygues shares are on course for their worst fall in 17 years, plunging nearly 15% in early trading, while Orange shares are down 4.8%. Bouygues shares are on course for their worst fall in 17 years, plunging nearly 15.2% in midday trading, while Orange shares were down 4.4%.
The news also sent BT shares down 1.1% and Vodafone down 0.5%, although they later recovered some of those losses. The news initially sent BT shares down 1.1% and Vodafone down 0.5%, although they later recovered those losses.
CollapseCollapse
The potential merger of Orange with its smaller rival Bouygues was intended to prop up profits and would have reduced the number of mobile operators from four to three in France.The potential merger of Orange with its smaller rival Bouygues was intended to prop up profits and would have reduced the number of mobile operators from four to three in France.
Analysts said Orange had set clear conditions that were not met during talks, while Bouygues identified four reasons for the failure, including execution risk and governance. Analysts at Deutsche Bank said Orange had set clear conditions that were not met during talks, while Bouygues identified four reasons for the failure, including execution risk and governance.
The Stoxx index of 600 European telecoms firms is down 1% amid heavy falls among other French telecoms stocks. "We believe that this was one of the last chances for consolidation within the French telecoms market," analysts at Berenberg said.
Iliad - the low-cost rival to Orange and Bouygues - was down 13%. SFR shed 14% and Altice dropped 15%. The Stoxx index of 600 European telecoms firms was down slightly in afternoon trading, amid heavy falls among other French telecoms stocks.
Iliad and SFR, which had both been in talks to acquire some of Bouygues' assets, shed 15.8% and 17.6% respectively on the Paris stock exchange.