PARIS--The French government's plan to acquire a 20% stake in
Alstom SA (ALO.FR), as part of a wider deal in which the
engineering group would merge its energy business with General
Electric Corp. (GE), won't cost a cent to France's taxpayers,
Economy Minister Arnaud Montebourg says an interview with daily Le
Parisien.
Alstom's board on Saturday accepted a sweetened offer from GE
for its power-equipment unit, ending a two-month fight in which Mr.
Montebourg played a heavy hand to obtain employment guarantees and
keep some decision centers in France.
As part of the transaction, the French government announced
Saturday it would get a 20% stake in Alstom to strengthen its grip
on the group, involved in nuclear activities, from its current
largest shareholder, family-controlled Bouygues SA (EN.FR), and has
been negotiating over the price since.
"Clearly, if there is no state entry [into Alstom's capital
equity] because Mr. Bouygues doesn't want to sell his shares, the
deal with GE won't take place," Mr. Montebourg says in the
interview.
The French government is seeking to buy the Alstom shares at
around 28 euros ($38.07) apiece, while Bouygues wants to sell at 35
euros a share.
The government has the means to acquire the stake thanks to
proceeds from disposals of other stakes in companies such as
Aeroports de Paris SA (ADP.FR), Airbus Group NV (AIR.FR) and Safran
SA (SAF.FR), Mr. Montebourg said.
"We have around EUR2.7 billion in our coffers," he said.
Newspaper website: www.leparisien.fr/
Write to the Paris Bureau at djnews.paris@dowjones.com
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