PARIS -- The European Court of First Instance has rejected the appeal of the French State and France Telecom concerning the litigation on the implementation mechanism for professional tax prior to 2003.
The relevant amount had been placed in an escrow account in 2007 and 2008 – and therefore was excluded from the Group’s cash balance – amounts to 1 016 M€ today, including interest. This amount will now be transferred to the French State, with no impact on the Group’s net debt. An expense, net of tax, of the same amount will be accounted in the Group’s 2009 P&L.
This decision does not impact the Group’s dividend policy that will remain based on organic cash flow excluding exceptional elements.
Orange (NYSE: FTE)