France Telecom Has Big Italy Ambitions

But it had no comment on a newspaper report that it might be willing to take an equity stake in loss-making information technology group Olivetti, as suggested by the International Herald Tribune newspaper.

Concerning the capital of Olivetti we have no comment to make. We will follow with interest any developments in Olivetti's capital, a France Telecom spokesman said.

Financial analysts said France Telecom could not become too involved in Olivetti as it could endanger its partial privatisation which is due to take place in spring 1997.

France Telecom will want to show its shareholders that it has a tight and conservative strategy concerning international expansion andits first priority is to reduce its debt, said an analyst.