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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: bertrand bidaud who wrote (199)	11/16/1998 4:44:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 3891

(UPDATE) Alstom Planning Acquisitions To Double U.S. Sales Dow Jones Online News, Monday, November 16, 1998 at 13:28 PARIS -(Dow Jones)- Franco-British conglomerate Alstom SA said Monday that it is aiming to double its U.S. sales over the next five years, mainly through acquisitions. Alstom (ALS) hopes to boost annual U.S. sales of 980 million European currency units ($1.15 billion) by building up its railway systems, tranmission, distribution and power-generation businesses. The company is "particularly keen" to expand in rail transport, and has been considering acquisitions of small- to medium-sized U.S. transmission and distribution equipment makers. Alstom Chief Executive Pierre Bilger declined to say how much the company plans to spend on U.S. acquisitions, but said he wanted to expand the group's U.S. work force from 3,000 to between 10,000 and 15,000 by 2003. Analysts said the announcement signals that Alstom is likely looking at joint investments with medium-sized U.S. transport companies so it can take advantage of plans by U.S. municipalities for new rapid transit systems. The analysts said that without investing in U.S. production facilities where new jobs can be created, Alstom would find it hard to win contracts from U.S. city authorities given their concerns about employment. "As a world leader in the railway sector, Alstom doesn't need to acquire new technologies from U.S. competitors," said an analyst at a French investment bank who wished to remain anonymous. "But in its search for major contracts, it will be compelled to transfer part of the production of rolling stocks and signaling systems to a U.S. unit to iron the concerns of local authorities over employment issues," the analyst said. A spokesman said the planned extension of Alstom's reach in the U.S. should see the company's work force expand to 10,000 to 15,000 by 2003 from 3,000 currently. Alstom said it expects to benefit from the greater interest several U.S. municipal authorities are showing in building rapid transit systems, one area of Alstom's expertise. Analysts agreed the company has the financial muscle required to make significant purchases in the U.S. Francine Lenoir, an analyst at Societe Generale Securities, noted that the company is flush with cash, with no significant debt, while a typical engineering company such as Alstom might have borrowings running at 30% to 40% of equity. Considering Alstom has shareholders funds of around 10 billion francs ($1.77 billion) in equity, the company could raise up to four billion francs for any fresh acquisitions, analysts said. Alstom is scheduled to release its first half-year results on Tuesday since it was spun off from the former Alcatel Alsthom SA. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.