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France Telecom has confirmed it is in discussions with international network operator Equant about a possible "transaction", but claimed nothing will come of it given current stock market conditions.
Published: 11 October 2000 16:02 BST
Equant administrators are expected to meet next week to ratify the deal, according to an unnamed source quoted in the French media.
Discussions between France Telecom and Equant first began in June, but ended without an agreement being reached. Equant hinted in September that it had not ruled out the possibility of a deal with the telco.
The unnamed source claims France Telecom met with its bank on Monday to secure a loan of E5bn (£3bn).
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