The IPO was originally expected to raise 70 billion to 80 billion euros for the company. Trading on the London and Paris exchanges will likely start on the afternoon of Feb. 13. Some managers have their sights on Orange's low per-share price. I think with the lowered price and dominant position in France, it's a good opportunity. After its heavy discount, the Orange offering should fare decently, but many fund managers remain wary.
Investors are so skittish over telcos and techs.
Indeed, some investors say they'll pass on the raft of European telecom deals coming down the pike, which include Deutsche Telekom, KPN Telecom, and British Telecommunications. She notes that deals in Europe are typically small to begin with, limiting the amount of available shares. Unless the offering looks really solid, she says, it's simply not worth the effort to fight for a cut of most IPOs. But Rosemary Sagar, head of global investment at U.S. Trust, expects to see more cases like Orange, once pricings in general are slashed. She has raised her standards on IPOs significantly.