Shares in FranceTelecom shares soared today as investors reacted with relief to an announcement that the Gallic communications group had withdrawn a takeover bid for TeliaSonera, its Nordic rival.

With the French company unwilling to improve an offer which had been rejected by TeliaSonera’s board, Didier Lombard, France Telecom’s chief executive, threw in the towel over his controversial expansion plans.

To read this article in full in The Times, see business.timesonline.co.uk/tol/business/industry_sectors/telecoms/article4240322.ece.

Also see the New York Times/International Herald Tribune report at nytimes.com/2008/07/01/business/worldbusiness/01telecom.html or iht.com/articles/2008/06/30/business/ftel.php.