France Telecom-Orange may invest up to EUR 7 billion in deals focused on Africa and the Middle East as part of its plan to double revenue from emerging markets over the next five years, CEO Stephane Richard told Bloomberg in an interview. "If we can buy a portfolio of assets to arrive more rapidly, that's very good. If it's necessary to buy licences country by country, that works also," he said. France Telecom currently generates around EUR 3.3 billion of annual revenues in emerging markets, or about 7 percent of its total sales. Richard explained that doubling this over five years supposes finding another EUR 2 billion in revenues through asset acquisitions or new licences, with another EUR 1 billion coming from internal growth. Based on Bharti Airtel's recent purchase of Zain's African assets, acquisition prices stand at around 2.5 or 3 times revenue, therefore France Telecom would have to spend up to EUR 7 billion, Richard explained. He added that the group seeks to fill gaps in West Africa and would consider buying any Zain assets Bharti Airtel may want to resell.
