France Télécom, which will unveil details this week of the IPO of Orange, is planning a huge secondary sale of its own shares later this year, according to banking sources in Paris. It is also understood to be considering a fire sale of some of its non-core assets to reduce its debt mountain and regain investor confidence.

The secondary sale is expected to total between €10bn and €15bn. The sale will further hit France Télécom's battered share price. Last week, its shares closed at €95.05, down more than 56% from their high of €219 in March 2000.