Bouygues, Orange shares rise on telecom tie-up rumours

PARIS, May 16 (AFP): Shares in French construction, telecom and media group Bouygues surged in initial trading on Friday in response to reports that the group was in talks to sell its telephone subsidiary to French giant Orange.
The price of Bouygues shares was showing a gain of 3.54 per cent to 32.8 euros to lead the French CAC 40 index which was flat.
Shares in Orange were up 1.06 per cent to 12.4 euros.
"Traders are counting on a deal between Orange and Bouygues," said stock trader Yves Marcais at Global Equities. But he warned that anti-trust regulators would not allow a tie-up between the two groups unless they made concessions to ensure competition.