France Télécom, which is struggling under a €69.7bn ($68.4bn) debt mountain, failed to decide at its board meeting whether to launch a rights issue to help relieve the massive burden.

The state-controlled operator reported a record net loss of €12.2bn ($11.96bn) for the first half of 2002 but despite accepting the resignation of Michel Bon, chairman and chief executive, plus four other directors, it was unable to settle on a plan to reduce its debt.