British bid denied by French telco

France Telecom has denied a British newspaper report it is planning a $10 billion takeover of British rival Cable & Wireless.

"France Telecom formally denies everything that is in this article," said spokeswoman Nilou de Castel.

"It is pure fantasy."

The Sunday Telegraph, which did not cite any sources, said France Telecom was planning the bid as part of a strategy to diversify its interests in Britain.