Orange Jumps 3.2% at Open, Boosted by Announcement of Talks with Altice

Continued Negotiations and Market Response

The consortium formed by the three telecom operators issued a joint statement this morning confirming the continuation of negotiations with the Altice group. Due diligence has been underway since the beginning of January 2026, marking a new phase in this case initiated last October. The legal and financial conditions of the transaction have not been agreed upon to date, the three groups specify, noting that there is no certainty that the process will result in a definitive agreement. Orange's stock crossed its technical resistance threshold at 14.81 euros right at the opening, reflecting investor enthusiasm for this announcement. The stock is now 9.7% above its 200-day moving average established at 13.53 euros, confirming the strength of the upward trend that has been underway for several months. Over one year, the performance has reached 43.68%, driven by market consolidation prospects and the group's strategic initiatives. The RSI at 54 points remains in the neutral zone, leaving room for a continuation of the upward movement without technical overheating signals. This rebound occurs in a favorable context for telecom operators, as several analysts have recently raised their price targets on the stock. Deutsche Bank and Morgan Stanley notably raised their targets to 16.50 euros and 15.50 euros in mid-January, while Citi initiated a buy recommendation with a target of 15.80 euros on January 13.

Initial Offer and Market Dynamics

In October, the three operators launched a non-binding joint offer for the acquisition of a large part of Altice France's activities for a total amount of 17 billion euros. Despite the rejection by the group founded by Patrick Drahi, Bouygues, Iliad, and Orange have maintained their offer, demonstrating their determination to restructure the French telecommunications market. Any potential transaction would have to be approved by the governance bodies of the concerned companies and would remain subject to usual conditions, including regulatory ones. Orange's stock is trading above its upper Bollinger band at 14.84 euros, signaling strong buying pressure at the start of the session. The 50-day moving average, established at 14.10 euros, confirms the positive medium-term momentum, with the price now 5.2% above this technical benchmark. The low share of capital traded at the opening, at 0.03%, suggests that the movement is driven by strong investor conviction rather than short-term speculation. In early January, Orange issued a $6 billion bond in five tranches, aimed particularly at repaying debts related to the acquisition of the remaining 50% of MasOrange. This financing operation strengthens the group's ability to carry out external growth operations while maintaining financial discipline with a target net debt to EBITDAaL ratio around 2x. Investors are now awaiting the publication of the annual 2025 results scheduled for February 18, the day before an investor day that could reveal new medium-term targets.