France Telecom's

(FTE)

Orange unit agreed to acquire 80% of the shares of Una Operadora de Telecomunicaciones, the owner of nearly all of Retevision Movil, a mobile operator using the trade name Amena.

The acquisition of the Amena stake is valued at 6.4 billion euros, or around $7.7 billion at current exchange rates.

Amena has 9.7 million clients. According to France Telecom, Spain is the No. 5 market in Europe with an estimated growth potential for cell phones of about 6% a year between 2005 and 2008.

On a pro forma basis, France Telecom will have more than 11.8 million clients in Spain at the end of 2005 and realize sales of 4.1 billion euros. The Paris-based telecommunications services provider said the transaction should have a positive effect on free cash flow per share and net income per share before the amortization of goodwill in less than 12 months.

The American depositary shares of France Telecom rose 38 cents to $29.73 in trading before the opening bell in New York.