France Tel-TeliaSonera decision in weeks

By Astrid Wendlandt and Cyril Altmeyer

PARIS (Reuters) - France Telecom (FTE.PA: Quote, Profile, Research, Stock Buzz) said it would try to retain its credit rating even if it did a major acquisition and aimed to decide on a possible bid for Nordic operator TeliaSonera (TLSN.ST: Quote, Profile, Research, Stock Buzz) within weeks.

"We will try to keep the rating," France Telecom Finance Director Gervais Pellissier told the Reuters Technology, Media and Telecoms Summit in Paris on Thursday.

"(Credit rating agencies) Moody's and S&P have not made negative comments."

France Telecom's current rating by Standard & Poor's is A minus with a stable outlook. Moody's Investors Service gives it a rating of A3 with a stable outlook.

Comparatively, S&P gives Deutsche Telekom (DTEGn.DE: Quote, Profile, Research, Stock Buzz) a lower rating of BBB plus with a stable outlook, and Moody's holds a rating of Baa1 with a stable outlook.

POSSIBLE DEAL

France Telecom revealed in April it was interested in TeliaSonera but stressed earlier this month that negotiations had not yet started.

"Everyone knows we're looking at it," Pellissier said.

"It puts us in a very uncomfortable situation vis a vis our shareholders because it creates uncertainty on a decision," he said.

"For the sake of the company, of the share price and of its shareholders, it can't be a process that lasts forever...A decision will have to be made in weeks."

Looking outside Western Europe, Pellissier said France Telecom thought South African mobile operator MTN (MTNJ.J: Quote, Profile, Research, Stock Buzz) was "attractive." But asked if France Telecom was in discussions with MTN, Pellissier answered: "No".

Barring any acquisition, he said emerging markets would make up 18 percent of sales by 2010, up from 14 percent currently, which he noted was still small compared to Telefonica's (TEF.MC: Quote, Profile, Research, Stock Buzz) 24 percent of sales.

He said France Telecom was no longer in talks with Africa's Ghana Telecom.

Ghana said earlier this month it hoped to agree the sale of a majority stake in the telecoms operator by mid-year and was speaking to a number of potential buyers.

FRENCH MARKET GROWING  Continued...