MOBILE phones firm Orange is to offer small investors a discount in a bid to attract interest for its partial flotation later this month.

Fifteen per cent of Orange, the biggest private sector employer in Darlington with 2,000 workers in two call centres, will be floated on the Paris and London stock exchanges on February 12, in a price range of 733p to 860p a share, giving a market value of between £35bn and £41.3bn.

The lower than expected value is believed to be a reaction to the extent to which telecoms stocks have fallen out of favour in recent months, and also a move by Orange to spark interest in the float.

That price is significantly below the £100bn for which owner France Telecom hoped when it bought the firm for £21bn last year.

But Orange is to offer private investors a discount in the hope of attracting interest from smaller investors.

The minimum investments for private buyers will be £250, with no maximum limit set.

The share offer will be launched today in the UK, France and Germany and later this week in Italy.

The proceeds from the flotation will be used by France Telecom to re-finance its acquisition of Orange from Vodafone, which was completed last August.

The retail discount will be 0.50 euros per share, or 32p in the UK.

France Telecom is to offer 633 million shares, representing 13 per cent of the share capital of Orange, but an option allows this to be increased to 728 million shares, or 15 per cent.

Hans Snook, Orange chief executive, admitted the lower price reflected current market conditions, which had changed considerably since last spring.

"You can only get what the market is prepared to pay," he said.

The flotation would allow Orange to "expand its footprint" through acquisitions, mergers and future alliances.

Already, 600,000 people in the UK have registered for a prospectus.

l An Orange mini-prospectus and application form can be obtained by calling 0800 085888 or downloaded at:

www.orangeshareoffer.com.