New Orange

Orange, acquired from Vodafone Itineris, France's largest mobile phone operator France Telecom's other wirefree businesses

The firm being floated, which includes most of France Telecom's other mobile assets as well as the Orange business it bought for �25bn (39bn euros) last year, had previously been given an estimated value of 150bn euros (�95bn).

Enticing the public

The strategy of offering discounts to individuals buying shares, while considered unusual practice today, mirrors the approach followed by the UK government in the 1980s to encourage the public to buy shares in privatised enterprises such as British Gas.

The plan, said to be getting the backing of a �20m advertising campaign, will allow Orange to cash in on its high public profile, and support its flotation at a time when analysts are concerned about the valuation of telecoms firms.

More than 600,000 Britons have pre-registered for Orange shares, with demand from French investors set to be even higher, Orange said.

City caution

But City institutions remain cautious about the valuation of the firm, hitting hopes of a mad dash for Orange shares.

City analysts have become concerned about the levels of debt telecoms firms have run up buying licences for future generation mobile phones.

And the prospectus for the firm, which is also to be unveiled on Monday, was also reported to be likely to highlight growing concerns over the health risks of using mobile phones, warning that some firms face legal actions over alleged harm caused by radiation from handsets.

Other worries have centred around the resignation of Hans Snook, Orange's founder, as the firm's chief executive.

While he will remain a consultant, one shareholder is quoted in the Mail on Sunday as saying that Orange without Mr Snook is like "the Starship Enterprise without Kirk, Spock or Bones".

Setting a trend

France Telecom could later increase the flotation to 15% of its holding in Orange, which was bought from Vodafone who owned it after buying German rival Mannesmann.

Orange will be listed on both London and Paris stock markets.

The flotation will be keenly watched by BT, Deutsche Telekom, and KPN Telecom, which are all believed to be considering the sale of their mobile phone interests.