After union criticism about its dividend policy, France Telecom-Orange is preparing investors for a lower dividend, Les Echos reports. As a result of a meeting between the operator's top management and financial analysts, Exane BNP bank expects the operator to pay around EUR 1 a share this year and EUR 0.75 in 2013, compared to EUR 1.40 in 2011. Other banks, such as Bernstein, Morgan Stanley and Oddo, also reduced their estimates. Twenty-seven percent government-owned France Telecom would not comment on the matter, other than to say that more information would be forthcoming at its third-quarter presentation on 25 October. The group said in July that it anticipated a EUR 8 billion cash flow for the year, and that 40-45 percent of it would be returned to shareholders. France Telecom sees reducing its EUR 31.2 billion debt as a priority. Les Echos writes that France's sovereign strategic investment fund will be hit by a dividend cut, because France Telecom dividends are practically its only source of revenue. The state received EUR 1 billion from these dividends in 2011, a figure that would fall to EUR 700 million this year and EUR 570 million in 2013, if Exane is correct.
