FT shows confidence with €6b credit line

France Telecom looks set to report a strong 2010, being bullish enough to agree a €6 billion credit line with a network of banks to maintain liquidity in the coming years.
 
The deal agreed yesterday with 28 global banks extends an existing revolving credit facility for a further five years, but cuts the amount available by €2 billion over the previous agreement, which was signed in 2005.
 
France Telecom states the lower limit reflects changes to its set-up in recent years.
 
The telco is currently restructuring to become a content aggregator and distributor, utilizing fixed line, wireless and Wi-Fi networks. It announced plans to acquire online video firm Dailymotion as part of the new strategy earlier this week.
 
An existing, unused, credit line has also been extended by three and a half years from June 2012 until January 2016.
 
The firm is due to report 2010 results on Feb 24.