The French state plans to remain France Telecom SA's (FTE.FR) largest shareholder, a government official said Tuesday at the company's annual general meeting of shareholders.

"I confirm very gladly ... that the French state absolutely does not have the intention of no longer being the first shareholder of France Telecom," said Bruno Bezard, who heads the agency for state equity investments in companies, the APE.

The French state owns 26.7% of France Telecom.

-By Adam Mitchell, Dow Jones Newswires, +33 1 40171756; adam.mitchell@dowjones.com