France Telecom sells subsidiary for $2.14bn

France Telecom announced on Monday that it had reached an agreement with Apax Partners to sell Orange Switzerland, cellular-new reported.The parties agreed on an enterprise value of CHF2 billion ($2.14bn), corresponding to a multiple of 6.5x Orange Switzerlands estimated 2011 earnings before interest, taxes, depreciation, and amortisation.The transaction, which is subject to the approval of the Swiss competent authorities will be submitted to the Board of Directors of France Telecom for approval during the week commencing on January 9, 2012.Upon completion, this transaction will constitute a significant step in the optimization of France Telecoms assets portfolio announced in May 2011.Orange Switzerland was established in 1999. The company posted revenue of CHF1.3 billion (1.1bn) in 2010 and had a customer base of 1.6 million at the end of September 2011. Foxconn looking to double Zhengzhou iPhone factory sizeFoxconn is reported to be planning to build the worlds largest manufacturing base for smartphones based in Central Chinas Henan province next year, cellular-news reported on Monday.The base will be centered on the Foxconn Science Park in Zhengzhou, provincial capital of Henan, increasing its current production lines to 95, the Henan provincial development and reform commission announced during a conference.The factory expansion is said to be costing $1.1bn.Foxconn, along with many other component assembly plants has been seeking to move production away from the coastal areas where higher wages are being demanded along with improved working conditions. Zhengzhous labor costs that are about two-thirds those in Chinas coastal cities.The government is also keen to reduce the huge labour mobility swings as people move to the coast to seek work.The existing plant in Zhengzhou has already reached a daily production of 200,000 Apple iPhones and employed 130,000 people, said Guo Gengmao, governor of Henan province. It opened earlier this year
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