Standard&Poor's placed its long-term corporate credit ratings on France Telecom and the company's mobile-telephony subsidiary, Orange PLC, on CreditWatch with negative implications on March 28, 2002. The action follows news that the German stock-exchange regulatory authority will investigate a possible agreement between France Telecom, the main shareholder--Gerhard Schmid--of France Telecom's 28.5%-owned German associate Mobilcom AG, and a consortium of European banks regarding the conditions for a change in control of Mobilcom. Although France Telecom has sought to resolve the conflict with Mobilcom's main shareholder and extend the maturity of the latter's €4.7 billion syndicated credit line without taking direct control of the latter or providing it any direct financial support, the most recent discussions with Mr. Schmid and
