The likelihood of a jumbo bond issue by France Télécom increased on Wednesday after the European Competition Commission said it would formally investigate a proposed €9bn ($9.34bn) bailout loan from the state, which owns 55% of the company.

The state planned to lend France Télécom the money through a special purpose vehicle in return for shares in the company after a planned rights offering later this year. The loan forms part of a rescue package to cut the company's €70bn debt in half within two years. It was attractive to the state because it would not add to the Republic's own debt burden.