France's Orange prepares possible split from Israeli partner

AP News
Posted: Jun 30, 2015 2:50 PM

PARIS (AP) — French telecommunications group Orange has reached a deal with its Israeli partner that could lead the way to their split, amid controversy and growing calls for companies to boycott Israel.

An Orange spokesman insisted Tuesday that the company is not pulling out of Israel but rethinking its brand agreement with Israeli company Partner Communications.

Orange said that the two companies reached an agreement that allows either of them to terminate the existing agreement. Orange would pay Partner up to 90 million euros ($100 million) if it's terminated within two years.

Orange CEO Stephane Richard stoked anger last month by announcing he wanted to sever business ties with Israel. He later apologized to Prime Minister Benjamin Netanyahu, saying he opposes the boycott movement and will continue to invest in Israel.