Analysts have reacted cautiously to the latest report that the French government is considering a rights offering worth up to €10bn ($9.8bn) for France Télécom, in order to cut the telecoms firm's debt burden.

The report in French newspaper La Tribune, said that the government would buy half of the new shares to maintain a controlling stake in France Télécom. It said the firm is likely to report a loss of €10bn for the first half of 2002. France Télécom could not be reached for comment.