PARIS and ATLANTA -- France Telecom [Paris Bourse Sicovam: 13330, NYSE: FTE] and Equant [NYSE: ENT, Paris Bourse: EQU] today announced an agreement which creates a world-leading provider of data and IP communications services for the business community on a global scale by merging Global One with Equant. Equant/Global One will be an industry leader with a unified global network, critical mass of customers and traffic, and increased financial strength for accelerated growth.

Equant to acquire the data business of Global One from France Telecom in exchange for newly issued Equant shares; France Telecom to acquire the SITA Foundation's interest in Equant in exchange for existing France Telecom shares; Equant/Global One to gain full control of the SITA-Equant network. SITA will continue to serve the Air Transport Community through a new long-term strategic agreement with Equant/Global One; France Telecom to accelerate Equant/Global One's growth strategy by investing USD 1.0 billion through newly issued Equant voting preferred shares, convertible into Equant ordinary shares; Equant public shareholders to receive " Contingent Value Rights " from France Telecom.

http://www.francetelecom.fr/vfrance/actualite/f_actu.html