Alcatel Buying 9.5% Stake In Thomson-CSF From French Government
Dow Jones Online News, Friday, November 05, 1999 at 09:16
PARIS -(Dow Jones)- France's Finance Ministry said Friday that
telecommunications equipment supplier Alcatel SA will acquire a 9.5%
stake in Thomson-CSF SA from the state for 36 euros ($37.36) a share, or
573.5 million euros ($595.1 million).
The transaction is part of an agreement announced in July under which
Alcatel (ALA) will raise its holding in the defense-electronics group to
25.3%, the ministry said.
The ministry said the state will cut its stake in Thomson-CSF to
33.4%.
In a separate statement, Alcatel said it will finance the acquisition
through the sale, for an equivalent amount, of part of its 44% holding
in nuclear engineering group Framatome SA to the state.
The transaction values Framatome at 2.46 billion euros, Alcatel said.
Alcatel said that following the transaction, it will have reduced its
stake in Framatome to below 10%.
Alcatel said it plans to sell its remaining Framatome stake within
the next two years, preferably through a public sale of Framatome
shares.
Alcatel also said the reshuffle of its Framatome and Thomson-CSF
stakes will generate an exceptional gain of 300 million euros in 1999.
Framatome will be 34%-owned by state-owned mining and nuclear waste
management group Cie. Generale des Matieres Nucleaires, 20%-owned by
state holding company CEA-Industrie and 10%-owned by electricity utility
Electricite de France, the ministry said.
The ministry said the reshuffle of Framatome's shareholding structure
will facilitate future European alliance and industrial partnerships
although the company will remain in the public sector.
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