French telecoms group Orange said it had signed an agreement with Partner Communications that gave both companies the right to terminate their Orange brand license agreement.
Israel protested to France after Orange's Chief Executive Stephane Richard said earlier this month that he would terminate the licensing arrangement with the Israeli company "tomorrow morning" if the contracts allowed. Orange is 25 percent owned by the French government.
Under the new deal, if Partner does not exercise its right to terminate the brand agreement within 12 months, either Partner or Orange could terminate it during the following 12 months, Orange said in a statement.
Orange said it had agreed to pay Partner 40 million euros ($44.7 million) while a market study is carried on Partner's position and an additional 50 million could be paid out should the agreement be terminated within 24 months.
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