France Telecom Weighs Deal to Buy Congo China Telecom Stake

France Telecom SA may make the Democratic Republic of Congo its next target for African expansion after entering exclusive talks with China’s ZTE Corp. to purchase a majority stake in Congo China Telecom, the country’s fourth-largest mobile operator.

France Telecom could later purchase the 49 percent of the operator held by the Congolese government as part of a a call for bids, in addition to ZTE’s 51 percent stake, said Beatrice Mandine, a France Telecom spokeswoman. The combined transactions could represent an investment of about 300 million euros ($425 million), according to a person familiar with the situation. An exact valuation is hard to determine because the government tender hasn’t been completed, the person said.