France Télécom is set to end up raising €950m ($848m) less than it had initially hoped from last month's initial public offering of Orange, its mobile phone subsidiary.

According to the prospectus for the Orange IPO, France Télécom granted its bankers a standard greenshoe, or overallotment option, of 95 million shares. At the issue price of €10 a share, this was worth an additional €950m to France Télécom. It is understood that France Télécom will not exercise the option because Orange shares are still trading at around 14% below their issue price. Shares in the greenshoe are usually sold to satisfy additional demand, raising extra capital for the issuer. The right to exercise the greenshoe expires on Wednesday.