Orange CEO Says U.K.'s EE Venture 'Not Long Term'

By Simon Zekaria 

BARCELONA-- Orange SA Thursday said EE, its U.K. mobile joint venture with Deutsche Telekom AG, isn't sustainable in its current form in the long term, casting fresh doubts over the future of Britain's biggest wireless operator.

The former French telecommunications monopoly and Germany's biggest telecom operator each hold an equal 50% stake in the business.

"The 50-50 situation isn't a long-term scheme," said Orange Chief Executive Stéphane Richard, speaking at the Morgan Stanley telecom, media and technology conference in Barcelona.

The mobile operator's parent companies were considering a listing of EE last year, valued at over GBP10 billion ($16.3 billion) by analysts, and launched internal discussions but came to the decision that the timing wasn't right.

"In the mid-term future, we will have to think with the Germans about the evolution of EE," he added, adding that "all options are open" including a public listing or a separate merger and acquisition deal.

The CEO warned a decision isn't imminent. "Don't expect anything spectacular in the short term."

Write to Simon Zekaria at [e-mail]

Access Investor Kit for Deutsche Telekom AG

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=DE0005557508

Access Investor Kit for Orange SA

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=FR0000133308

Access Investor Kit for Deutsche Telekom AG

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US2515661054

Access Investor Kit for Morgan Stanley

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US6174464486

Access Investor Kit for Orange SA

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US6840601065

Subscribe to WSJ: http://online.wsj.com?mod=djnwires