Tufton Oceanic Assets Share Discussion Threads

[maywillow] 04/5/2004 06:37

Monti warns France over payments to Alstom
By Daniel Dombey in Brussels and Martin Arnold in Paris
Published: May 3 2004 21:21 | Last Updated: May 3 2004 21:21


Mario Monti, Europe's competition commissioner, warned France on Monday not to pour more subsidies into Alstom, the engineering group, but left the door open for an "industrial reorganisation" that might still involve the French state.


At the first face-to-face meeting between Mr Monti and Nicolas Sarkozy, French finance minister, the two men discussed the prospects for the struggling company, already the subject of a Brussels inquiry into an alleged €3.2bn ($3.8bn) of state aid.

Mr Sarkozy said that both had displayed a "common will" to solve Alstom's problems and that he would resume talks with Mr Monti as early as next week.

The French finance ministry will be sending a team to negotiate with top Commission officials from Tuesday.

"There are several options on the table," said Mr Monti's spokesman. "Some are promising [although] . . . all these options have their own advantages and disadvantages."

According to Commission officials, Mr Monti rejected the first of three options presented by Mr Sarkozy - in which Alstom would remain a stand-alone company, but Areva, the state-owned nuclear group, might buy a 15-20 per cent stake.

The Commission believes this is not a realistic scenario, since it would fail to assure Alstom's viability and would therefore create the risk of future bail-outs. In addition, it would be hard to prove that Areva was acting as an ordinary investor, rather than providing an additional subsidy.

However, the Commission was much more responsive to the two remaining options presented by Mr Sarkozy, both of which would involve industrial reorganisation.

One option is a full-scale takeover by Areva, which is 93 per cent government owned. The other would be a "double partnership", which could involve Siemens of Germany, Alstom's chief competitor in the French company's showpiece trains and turbines businesses.

Areva, which is reluctant to take on all of Alstom, has offered to take over the group's transport division, including the high-speed TGV train, leaving Germany's Siemens to fulfil its ambition of buying the turbines business.

Mr Monti has indicated a preference for this solution but has been warned by his staff that it could pose serious antitrust problems.

Some Commission officials now argue that General Electric's leading position on the world market could make a Siemens-Alstom deal possible, but admit that clearance could also have to come from other authorities such as the US and Japan.

[maywillow] 03/5/2004 12:25

updates with commission comment that state of talks is 'promising')
BRUSSELS (AFX) - French Finance Minister Nicolas Sarkozy said his government
and the European Commission share a "common will" to find a solution for the
rescue of Alstom.
Sarkozy was speaking after a meeting on the government's proposed rescue
package for Alstom with competition commissioner Mario Monti, which an EU
spokesman described as having opened up "promising avenues".
The Commission said Sarkozy and Monti agreed to make "rapid progress
together."
The two men discussed several options.
"Some ... could entail a long-term resolution of the file ... (but) all ...
need to be further discussed," said Tilman Lueder, competition spokesman for the
commission. "There are promising avenues."
Sarkozy said he expects to arrange a follow-up meeting with Monti next week.
Today, they discussed both the social and industrial implications of the
government's proposed bailout package for Alstom and agreed to proceed with a
view to finding a solution in line with EU regulations, the commission said.
The commission is due to rule in June on the 3.2 bln eur bailout package
agreed by Alstom's creditor banks and the government last November.
Newspaper reports today claim Sarkozy was to press Monti to accept an
all-French solution for the company, possibly including a partial takeover of
Alstom by France's state-owned nuclear group, Areva, with would-be suitor
Siemens AG having been pushed more into the background.
A source close to the case said three possible solutions are in the frame.
"The French are open to all scenarios. That in itself is a step forward,"
the source added.

[maywillow] 03/5/2004 11:09

---- by Matt Gil and Alfred Kueppers ----

PARIS (AFX) - The government is set to win EU clearance for its preferred,
French-dominated solution to Alstom's financial woes, meaning state-owned
nuclear group Areva, rather than German suitor Siemens AG, will likely emerge as
the troubled engineering company's core industrial partner, analysts said.
Finance Minister Nicolas Sarkozy met Competition Commissioner Mario Monti
this morning, with analysts expecting the minister to have put the case for the
government's 3.2 bln eur bailout for Alstom agreed with banks last November.
The eventual solution to secure the future of Alstom could still take a
variety of different forms. But it will ultimately be shaped by the role the
government is allowed to take by the Commission, analysts in France and Germany
agreed.
And while the EU is not expected to rule on the buyout until June,
indications that the plan is likely to go through unscathed will mean the
government can begin in earnest to clinch a suitor for Alstom - and its
preference for a French-based solution is clear.
Paris-based Natexis Bleichroeder said that, although Siemens remains in the
frame, the scenario of a partial takeover by Areva is gaining credibility.
In Frankfurt, Vidar Kalvoy of DZ Bank, rated Siemens' chance of succeeding
in buying energy or transport assets from Alstom at slimmer still.
"The French will examine every possible alternative before they break up the
company," he said. "They want to keep Alstom in French hands."
However, SG Securities, considers there is "zero visibility" on the
Alstom/Areva/Siemens combination, reflecting in part today's press speculation,
with a variety of newspapers suggesting multiple scenarios.
Shortly after being named Finance Minister in March, Sarkozy visited the
company's train production site and declared: "we will not let Alstom fail."
So, "in the hope that the French government would provide Alstom with its
full backing we recently upgraded our rating," SocGen said.
However, "we now consider that the uncertainty is too great to take a
position on the stock."
The Financial Times said Sarkozy was today to have presented Monti with
various solutions, according unnamed sources.
The government and banks could swap debt for shares in the company, with
bringing in Areva in addition to provide extra stability being the second phase
of this plan, it said.
But this would hamper Areva's plans to float, and the FT claims Areva would
prefer to take over Alstom's transport division - including high-speed TGV
trains - and leave Siemens AG with the turbines business.
According to an Areva source cited by Agence France-Presse however, Areva
would prefer the more logical solution of collaborating with Alstom on energy
projects.
The FT claims the government is seeking a French solution and is involving
Siemens in order to satisfy the Commission's insistence on a genuine market
solution.
Siemens CEO Heinrich von Pierer last week revealed he had met Prime Minister
Jean-Pierre Raffarin to discuss Alstom.
But today's La Tribune agreed Areva is no longer concealing its ambition to
get control of the trains business, and that Siemens is being kept on board in
order for talks purely to satisfy EU competition protocol.
Le Figaro, meanwhile, cited finance ministry sources as saying a tie-up with
Siemens in either trains or energy is being held in reserve as a compromise
option if the government cannot prove Areva's independence and thus meet EU
competition concerns.
It said the EU would prefer a dismantling of Alstom with the trains business
going to Areva, turbines to Siemens and Alstom Marine to state-owned French
Naval Construction Directorate DCN.
Natexis Bleichroeder commented that "bail-out scenarios are taking shape,
and in our view are tilting towards an industry solution."
But while "the scenario of "a partial takeover by Areva is gaining
credibility, Natexis said it "cannot rule other industry scenarios " including
not only Siemens but Finmeccanica SpA for the Marine buisness and Rolls-Royce
Group PLC in turbines.
In Frankfurt, analysts said Siemens would benefit most by purchasing parts
of Alstom, specificially its gas turbines division, but conceded that this is
unlikely, given the French government's reluctance to break up the conglomerate.
"The statements that I have heard from the French government have been quite
contradictory," said Theo Kitz, an analyst with Merck Finck. "But my
understanding is that Siemens can't take over the gas turbines unit from Alstom,
because the French don't want to break the company up."
Kitz added that Alstom's tranportation unit would also be of interest to the
Germans.
But "Siemens would be most interested in the signalling technology," Kitz
said. "Since they are involved with the ICE (Germany's high speed train) they
don't neccessarily need the TGV."
Analysts also question the benefit of a full alliance given the diversity of
both firms. Though Siemens makes everything from light bulbs to power plants, it
would have little use for Alstom's sizeable shipbuilding division.
"Who wants to build ships in Europe?" asked DZ Bank's Kalvoy.
[e-mail]
mrg/amk/jms

[ariane] 01/5/2004 11:47

30 Apr 2004 18:13 GMT EU's Monti Set To Scrutinize France Proposals For Alstom


Copyright © 2004, Dow Jones Newswires


By James Kanter

Of DOW JONES NEWSWIRES

BRUSSELS -(Dow Jones)- When French Finance Minister Nicolas Sarkozy comes to Brussels Monday to present a salvage plan for beleaguered engineering giant Alstom SA (ALS), he's likely to face a skeptical European Union antitrust chief, Mario Monti.

The French minister is expected to make at least two proposals to save the maker of TGV trains, luxury liners and power generation plants. The problem is that both plans - involving French state-owned nuclear generator Areva SA (4524.FR) and German engineering giant Siemens AG (SI) - could create new headaches under the E.U.'s competition rules.

A French government-led EUR3.2 billion bailout last autumn saved Alstom from bankruptcy. Brussels still must approve this bailout, and it has made selloffs by Alstom a key condition. The regulators' decision is expected in the second half of June.

Behind the wrangling over Alstom lies deepening resentment between Paris and Brussels. The French say E.U. Commission practices are hurting French and European competitiveness. The Commission disagrees, saying France should stop intervening in the marketplace and follow the E.U.'s rules.

Areva already has bought Alstom's power transmission and distribution assets. The state-owned company now is considering buying all or part of its bullet train and tram business, according to people familiar with the situation.

But an Areva deal with Alstom could arouse suspicions in Brussels that France is using taxpayers' money to prop up a flailing national champion. Sarkozy must show that a private investor would have the same interest in buying into Alstom. Otherwise, investment by a public company can be found illegal under E.U. rules. Those rules are needed, regulators say, to stamp out subsidies to government favorites and encourage a level, free-market playing field.

Regulators would want to know if Areva "pays the right price and whether the deal has industrial logic - or if it's a form of bailout," said one person close to the case.

Any Siemens deal is likely to raise different concerns - about overlaps. The German company is privately owned so public funding is not an issue. The problem is size. Already one of Europe's engineering titans, Siemens bought Alstom's small and medium gas turbine operations last year. It's the only other major train producer in Europe. Further acquisitions means Siemens could face lengthy investigation by E.U. merger authorities worried the company is becoming too strong in certain markets.

To rebut those charges, Alstom and Siemens could mount a so-called failing-firm defense to show that the market would be worse off without a deal that keeps Alstom's production sites going. Successive French governments have managed to finesse the E.U.'s competition rules - most recently, for example, by openly criticizing Novartis AG (NVE) from making a bid to buy Franco-German drug company Aventis (AVE). In the past, Monti and his predecessors have failed to stop the French government from intervening to give billions to Air France Group (3112.FR) and France Telecom (FTE).

But Monti is a tough-minded man, determined to fend off political pressure. Just last month, he fined Microsoft Corp. (MSFT) a record EUR497 million despite US disatisfaction with his reasoning. In Alstom's case, Monti and his officials still may prefer forcing the company to look for alternative buyers rather than give their blessing to an anticompetitive deal.

-By James Kanter, Dow Jones Newswires; 322-285-0136; [e-mail]

(With reporting By David Gautier-Villars and Greg Keller in Paris)

(END) Dow Jones Newswires

04-30-04 1413ET

[ariane] 30/4/2004 17:43

The last train Apr 30 2004




By Ben Hurst, Evening Mail


Work has begun on the last train to be built in Birmingham.

Sir Richard Branson who is buying the Pendolino for Virgin Trains described the event as "extremely sad".

Alstom is ending train production at the Washwood Heath site and 1,000 jobs are set to go.

The 53rd Pendolino in the £1billion fleet will be completed within the next few months.

"Washwood Heath is producing the best trains in the world," said Sir Richard who admitted he was saddened by the decision by French firm Alstom to end production in Birmingham.

Only maintenance operations will remain. Sir Richard said: "The best trains in the world are being built in Birmingham but the French company have decided to close production.

"It is a tribute to the workers that they have stayed with the production to the end to make sure it is completed properly.

"All the guys and girls at Washwood Heath should be extremely proud with what they have achieved in the last five years.

"They are transforming the rail network for everyone.

"It is just an extremely sad situation that so many talented people who build the best trains in the world have to go and find jobs, some of which will be outside the rail industry."

The entire Alstom workforce assembled to see the train roll onto the production line.

Three were given holidays in Florida by Sir Richard and all the workers were also given a first class pass for Virgin Trains for themselves and their families.

Peter Doolin, Vice President of West Coast Mainline production at Alstom said: " Today is about achievement and

pride, but it is also a sad day because after the assembly is completed Birmingham will not be handling rail vehicle building."

[grupo guitarlumber] 30/4/2004 09:28

LONDON (AFX) - Shares in Alstom have been downgraded to 'reduce' from
'neutral' by UBS, dealers said.
In a note to clients, the broker noted that recent French press reports
suggest that the French Finance Ministry is considering modifications to the
refinancing package announced last year and currently being reviewed by the
European Commission.
UBS pointed out that possible options are said to include a further capital
increase, some form of intervention by Areva or Siemens, or a debt for equity
swap.
The broker said it believes, however, that even if the EU approves the
current refinancing plan, this would not be sufficient, as the equity base will
still be too small to support the underlying business and debt will remain high.
UBS estimates that as much as 3.5 bln eur in new equity could be required to
put the balance sheet back on a long-term sustainable footing and in the short
to medium term, believes that around 1.5 bln eur is needed to bring greater
stability and avoid looming liquidity issues.
Overall, the broker said it does not feel the group's fundamental valuation
justifies the current share price, particularly in light of the risk of further
dilution, pointing out that a 1.5 bln eur capital increase at a 30 pct discount
would move 2006 EPS estimates down to 0.10 eur. It retained its price target of
1.4 eur.
gl/jmh/jsa

[grupo guitarlumber] 30/4/2004 05:49

A Siemens-Alstom dilemma for Monti
By Brian Groom
Published: April 30 2004 5:00 | Last Updated: April 30 2004 5:00

Nicolas Sarkozy, France's supercharged finance minister, goes to Brussels on Monday with a bagful of ideas to rescue Alstom. The issue is no longer simply securing Mario Monti's approval for last summer's government-backed bail-out, but persuading the European competition supremo to consider far more radical proposals to ensure the engineering group's ultimate survival.


Paris is worried that the original bail-out will not resolve Alstom's problems. Nothing short of a blockbuster alliance with a strong industrial group will do the trick. The choice has been between turning Alstom into "Siemens àla française" by merging it with the cash-rich Areva nuclear group or combining it with Siemens to form a new European heavyweight.

A potential mixture of the two scenarios was emerging last night, whereby Alstom's high-speed trains would combine with Areva and its shipyard with the government DCN military group, leaving Siemens as the obvious buyer for the turbines.

A combination with Siemens would pose problems for Mr Monti, the EU competition commissioner. At first he seemed to favour it but an internal Commission report warned about antitrust problems because of reducing world competitors from three to two in high-speed trains and turbines. Now officials are having second thoughts, pointing out General Electric would still be the world leader in the gas turbine sector. Whatever the outcome, there is a compelling case for creating a European group that would give GE a run for its money.

Mr Monti, in this case, should adopt a creative interpretation of competition rules.

[grupo guitarlumber] 30/4/2004 05:36

Sarkozy to pitch Alstom/Areva tie-up
By Martin Arnold in Paris and Daniel Dombey in Brussels
Published: April 29 2004 22:04 | Last Updated: April 29 2004 22:04


Nicholas Sarkozy, France's finance minister, is planning to secure the long-term future of Alstom by combining its transport activities, which include the high-speed TGV train, with state-owned nuclear group Areva.


Alstom, bailed out last year with government help, is still facing an uncertain financial future and its banks have given it until September to renegotiate last year's €3.2bn ($3.8bn) state-backed rescue package after it warned of worse than expected results for the year to March 31.

The government is seeking a longer-term solution to the company's problems, for which the creation of a Siemens à la française with Areva seems an obvious answer. Mr Sarkozy, speaking on a visit to a nuclear power plant at Chinon on Thursday, said: "One can imagine partnerships [for Alstom] with French companies."

Mr Sarkozy's plan, which he will present to the European Commission on Monday, has been accepted in principle by Areva. The state-controlled nuclear group had until now managed to resist pressure to play any role in the rescue of Alstom for fear of delaying its planned privatisation.

Areva remains opposed to other possible solutions being proposed by Alstom's main creditor banks, such as taking a 15-20 per cent stake in Alstom or a complete takeover. But it is now understood to see the "industrial logic" in combining with Alstom's transport business.

A merger of Alstom's train and tram-making business with Areva would leave its energy business, essentially made up of its large-scale gas turbines unit, and its ship-building business. The shipyard is likely to be combined with the government DCN military group. The obvious buyer for the turbines unit would be Siemens of Germany, which has bought some Alstom power assets and is understood to be interested in a deal.

Some European Commission officials are also having second thoughts about whether antitrust rules would preclude an alliance with Siemens, because General Electric would still be world leader in the gas turbine sector. "We would look at an industrial reorganisation with interest and an open mind," said a spokesman for Mario Monti, EU competition commissioner.

However, any deal with Siemens could also face French political hurdles to selling a large part of a former national engineering champion to a foreign company. Patrick Devedjian, industry minister, said yesterday: "A proposal from Siemens is even still a proposal for dismantling...not something we want."

Anne Lauvergeon, Areva chief executive, hopes to avoid any action that will prevent the nuclear energy group from moving quickly to a public offering as soon as she receives the government go-ahead.

[grupo guitarlumber] 29/4/2004 17:52

PARIS (AFX) - Finance Minister Nicolas Sarkozy said a partnership deal
between troubled engineering group Alstom and other French companies is a
possibility.
Speaking at a nuclear power plant at Chinon, Sarkozy said: "One can imagine
partnerships with French companies."
Speculation has emerged in the past week that nuclear engineering firm Areva
could be a potential partner for Alstom, along with German group Siemens AG.
od-ros/jad/cmr

[grupo guitarlumber] 29/4/2004 17:05

AMICUS THANK VIRGIN BOSS FOR HIS COMMITMENT TO ALSTOM PLANT
Source:
Amicus
(more releases)


Release date and time:
29.04.2004 - 11:29


Category / Keywords:
General / Unions, Economy, Workplace Internet:
Amicus

London (ots) - Amicus trade union, representing workers at the
Alstom train building plant in Birmingham said were grateful to
Richard Branson for visiting the plant today and for his support over
the years.

Amicus said today that the Virgin boss' efforts in visiting the
plant today demonstrates his appreciation of the role and the ability
of the Alstom workforce at Washwood Heath in delivering world class
trains.

Tom Keogh, Amicus Regional Officer, said:

"Richard Branson's visit today is a wonderful acknowledgement of
the skills of the workforce and their role in developing and
delivering the Virgin Pendelino tilting train, a world beating
product.

"Virgin committed GBP 600m to develop the Pendelino at Washwood
Heath but it's ironic that UK manufacturing and the Alstom plant at
Washwood Heath hasn't received the same kind of commitment from the
UK government."

French owned Alstom announced plans to shut their plant at
Washwood Heath in Birmingham last year because of a gap in contracts,
despite the plant winning a £100 million contract to build carriages
for London Underground. The work is being transferred to Spain.

Work on the Pendolino finishes in September 2004 while work on the
Underground carriages was not due to come on stream until February
2005. The company has cited the five month gap as the reason the
plant will close, jeopardising 1400 jobs in Birmingham. Alstom's
wider plan will reduce its' UK workforce by 5,000 in both its
transport and power divisions.

The Alstom plant in Washwood Heath was also built the Eurostar
trains. When the Alstom plant closes in September only one other
train builder will remain in the UK - Bombardier at Derby.
Bombardier announced 1,000 job losses across its' transport
operations in the UK last month.



ots Original Text Service: Amicus
Internet:

[grupo guitarlumber] 29/4/2004 06:56

LONDON (AFX) - The UK Ministry of Defence is insisting that BAE Systems PLC
should not include its submarine yard at Barrow-in-Furness, Lancashire, in the
potential sale of its shipbuilding division because of concerns over national
security, the Daily Telegraph reported, citing a ministry source.
"There are no ideological objections to the sale of the shipbuilding
business but particular issues with the submarines business," the source told
the newspaper.
The MoD insider blamed a nervousness about a change of control of the UK's
only nuclear submarine builder, as well as a need to ensure "security of supply
for Britain's armed forces".
BAE maintained yesterday that it was hoping to include the yard in any sale.
The company also owns two shipbuilding yards at Govan and Scotstoun on the
Clyde in Glasgow.
"We are looking to sell the lot," a BAE source told the Telegraph.
The US' General Dynamics Corp is one of a number of bidders, including
Southampton ship builder VT Group PLC and French group Thales SA, which are
thought to be interested in buying the naval businesses.
ow/ak

[grupo guitarlumber] 28/4/2004 20:01

28 Apr 2004 11:48 GMT EU Unlikely To Block French Government Alstom Plan - Sources


Copyright © 2004, Dow Jones Newswires



BRUSSELS -(Dow Jones)- A possible proposal by the French government to involve Germany's Siemens AG (SI) in a rescue plan for troubled heavy engineering company Alstom SA (12019.FR) is likely to be viewed favorably by European Union Commissioner Mario Monti, people close to the situation said Wednesday.

The E.U. Commission expects French Finance Minister Nicolas Sarkozy to present a rescue plan for Alstom at a meeting with Monti scheduled for next Monday, the people said.

Monti is likely to welcome a plan involving Siemens as the commissioner already said in the past that he favors a solution involving private companies that make state subsidies superfluous, the people said.

Siemens has previously said it is interested in acquiring Alstom's gas turbine business. According to the sources, Siemens lobbied the commission not to allow higher state subsidies in the Alstom rescue plans.

Without citing sources, daily La Tribune reported earlier Wednesday that officials at the French finance ministry are studying several rescue options for Alstom, most of which involve the German engineering company.

-Frankfurt Bureau, Dow Jones Newswires; [phone]; [e-mail]



(END) Dow Jones Newswires

04-28-04 0748ET

[grupo guitarlumber] 28/4/2004 19:07

PARIS (AFX) - Areva's attitude towards Alstom has "evolved" and the company
may considering taking a stake in its troubled compatriot and working on a joint
venture in the energy sector, a source close to the matter said.
Areva chairman Anne de Lauvergeon, currently steering the nuclear group
towards its own IPO and hitherto opposed to closer links with Alstom, is now
considering certain tie-up options, the source said.
Although a full merger is still ruled out, Areva recognizes there are "clear
synergies" to exploit and could, for example, join Alstom in developing the
Chinese electricity sector, the source said.
Alstom chief executive Patrick Kron earlier told employees there are no
plans for a tie-up with Alstom, in reaction to a press report.
Analysts contacted by AFX News today believe Alstom will likely look to form
industrial tie-ups, notably in the energy sector, with both Siemens and Areva to
ensure its survival.
[e-mail]
mrg/cmr

[grupo guitarlumber] 28/4/2004 18:08

PARIS (AFX) - There are "absolutely no plans" for a tie-up with Siemens AG,
Alstom chief executive Patrick Kron told employees in an internal note.
The group said earlier it has not been in talks with Siemens nor is it in
any talks currently, following reports that the French government may favour a
tie-up between the two groups.
Kron's declaration follows a report La Tribune today that finance minister
Nicolas Sarkozy could announce next Monday he is considering a tie-up between
Alstom and Siemens or France's state-owned nuclear group Areva.
Sarkozy personally intervened last week to secure a Franco-German tie-up
between Aventis SA and Sanofi-Synthelabo.
Sarkozy later said the government was "quite within its rights" to ask
Sanofi and Aventis to enter merger talks.
Siemens CEO Heinrich von Pierer today said he spoke with French Prime
Minister Jean-Pierre Raffarin about a possible merger with struggling Alstom SA
at a forum Monday.
Analysts contacted by AFX News today believe Alstom will likely look to form
industrial tie-ups, notably in the energy sector, with both Siemens and Areva to
ensure its survival.
[e-mail]
mrg/jkm/

[maywillow] 28/4/2004 10:38

PARIS (AFX) - Alstom said it has not been in talks with Siemens AG nor is it
in any talks currently, following reports that the French government may favour
a tie-up between the two groups.
"We have not had any contact with Siemens management, (and) our position is
that there are no discussions with Siemens," a spokeswoman said.
Siemens CEO Heinrich von Pierer said today that he has held talks with
French Prime Minister Jean-Pierre Raffarin on Alstom.
La Tribune said earlier finance minister Nicolas Sarkozy is considering a
tie-up between Alstom and one or more companies including Siemens or French
nuclear group Areva.
The finance ministry declined to comment on the report but added that
Sarkozy will raise the issue of Alstom among others with EU competition
commissioner Mario Monti during a meeting on Monday.
[e-mail]
dt/ros/jad/jms

[waldron] 28/4/2004 07:11

PARIS (AFX) - French Finance Minister Nicolas Sarkozy could announce on
Monday he is considering a tie-up between troubled engineering group Alstom SA
and one or more companies including Germany's Siemens AG or French nuclear group
Areva, according to a report in French daily La Tribune.
Earlier this week the finance ministry said Sarkozy will meet EU competition
commissioner Mario Monti on Monday in Brussels, to discuss several matters
including Alstom.
The paper yesterday quoted a banking source as saying that 3.5 bln eur of
financial restructuring aid given to Alstom last autumn will be exhausted within
two months.
Alstom yesterday said it secured a waiver on its loan covenants from a
consortium of creditor banks, who have given the company until Sept 30 to
renegotiate the lending terms.
This agreement should allow Sarkozy to reassure Brussels of Alstom's
short-term future, while banks may have to agree to take additional steps to
ensure Alstom's long-term financial strength, La Tribune said today.
[e-mail]
sr/jlw

[waldron] 27/4/2004 13:50

LONDON (AFX) - Thales SA is interested in bidding for BAE Systems PLC's
shipyards, a well-informed defence industry source said, confirming a report in
today's Daily Telegraph that the French group is the latest firm to be mulling a
bid after the UK defence giant hoisted the 'for sale' sign over the business.
Thales, which is cooperating with BAE Systems PLC on the 2.9 bln stg
aircraft carrier programme as well as the troubled Astute submarines contract,
said in a statement it "will examine the implications of BAE's initiative in the
context of Thales' leading role in major naval programmes, particularly the
carrier programme."
"Thales will proceed in close cooperation with its partners involved in
these programmes and with the UK MoD," the company's statement concluded.
A company spokesman declined to clarify the statement or elaborate any
further, but an industry source said the group is looking to strengthen its UK
naval business with some shipyards and would be very interested.
BAE Systems yesterday said it is reviewing its options regarding its
shipbuilding businesses but that no decisions have been taken with respect to
this review, which is still at an early stage.
BAE said it is considering all options, including the retention or sale of
some or all of these businesses.
A spokesman for BAE today declined to be drawn on the subject but an MoD
official said it is important that these essential naval capabilities remain in
the UK.
The official also said the MoD would consider each proposed bid for the unit
on its merits but added that the MoD has not yet been informed of any formal
approaches.
While the disposal of these activities would make BAE more attractive as a
merger partner to a US defence group, a sale of the business would mean the
group misses out on the expected revenues as the UK embarks on the largest
shipbuilding programme since 1945, according to analysts.
At 11.53 am, shares in BAE Systems were trading 3-1/4 pence lower at 216-1/2
pence, after analysts said that even a successful exit from shipbuilding will
not guarantee a green light for a bid or merger.
Williams de Broe analyst Harry Philips said Boeing Co, which has often been
named as a possible merger partner for BAE "has issues mounting day by day,"
after Darleen Druyun, a former Boeing vice president, said she plans to plead
guilty to one count of conspiracy for her role in securing the defense company
an Air Force fuel-tanker contract worth up to 23 bln usd.
Among the other parties said to have expressed an interest in BAE's
shipyards was VT Group PLC, although sources close to the UK shipbuilder played
down the group's interest.
Commenting on VT's reported interest, one industry source told AFX News
yesterday: "It is very early days. They have held informal talks but in no way
did VT approach BAE."
[e-mail]
acb/rf

[waldron] 27/4/2004 09:54

PARIS (AFX) - Market data at 10.00 am

Major indices:
CAC-40 up 5.25 points at 3,790.80
SBF-80 up 7.85 at 3.572.72
SBF-120 up 4.64 at 2,685.57

Volume: 423.6 mln eur
23 CAC-40 stocks up
17 CAC-40 stocks down

Major gainers:
-Alstom, up 0.09 eur or 5.3 pct at 1.78 eur, after confirmation that the
troubled company has secured a waiver of its loan covenants from a consortium of
creditor banks.
-Michelin, up 0.41 eur or 1.0 pct at 40.11 eur after reporting
higher-than-expected first-quarter sales.
-Pernod Ricard, up 1.30 eur or 1.2 pct at 106.60 eur

Major decliners:
-Vivendi Universal, down 0.10 eur at 21.93 eur
-Alcatel, down 0.06 eur at 13.39 eur, handing back yesterday's gains after
it agreed to set up a joint venture for its mobile phones handset business with
Chinese company TCL Communication Technology Holdings Limited.
-Sodexho Alliance, down 0.19 eur at 23.58

Most active stocks:
-Aventis, in volume of 73.90 mln eur, up 0.10 eur at 62.70 eur, recovering
from yesterday's sharp losses after Sanofi-Synthelabo announced a takeover deal
for its rival.
-Sanofi, 70.2 mln eur, down 0.15 eur at 51.90 eur
-Total, 34.85 mln eur, up 0.20 eur at 161.10
[e-mail]
lwl/jfr

[waldron] 27/4/2004 09:31

PARIS (AFX) - Thales SA will propose at its May 11 AGM to purchase up to 10
pct of its outstanding share capital, for a maximum price of 45 eur per share.
Thales already holds 5.6 pct of its own shares as treasury stock, meaning it
could purchase a further 4.4 pct of its shares. The buyback programme will run
through Nov 2005.
[e-mail]
js/jkm/

[waldron] 27/4/2004 09:27

adds that loan covenant waiver acquired without additional financing costs)
PARIS (AFX) - Alstom SA said it has secured a waiver on its loan covenants
from a consortium of creditor banks, who have given the company until Sept 30 to
renegotiate the lending terms.
The announcement confirmed a report in French daily La Tribune today, which
quoted a banking source as saying that 3.5 bln eur of financial restructuring
aid given to Alstom last autumn will be exhausted within two months.
The company warned in March of weaker than expected earnings for its full
year to March 2004, and indicated it might require a suspension of the lending
covenants, which are based on targets for Alstom's EBITDA and consolidated net
worth.
"This suspension has been achieved without modification to the financial
conditions of the credits concerned, and without cost," Alstom said.
[e-mail]
js/jlw

[waldron] 27/4/2004 08:23

LONDON (AFX) - BAE Systems PLC has been rejected as lead contractor on the
UK's 3 bln stg aircraft carrier project, according to a report in the Times.
Without naming its sources, the report states that angry officials at the
Ministry of Defence have interpreted the defence group's plans to sell its
shipbuilding business as an attempt to 'strongarm' the government over the
carrier deal.
If BAE is to sell its shipbuilding business, the MoD would have to
renegotiate the carrier deal, according to the Times. BAE was told two weeks ago
that the project would be run by an alliance rather than a single company.
acb/slm/

[waldron] 27/4/2004 07:18

LONDON (AFX) - Thales, the French defence giant, has become the latest
company to be linked with a bid for BAE Systems PLC's shipbuilding business, the
Daily Telegraph said without citing sources.
BAE confirmed that it had received offers for the business -- comprising two
shipyards in Glasgow and a submarine yard at Barrow-in-Furness, Lancashire, the
paper said.
ijl/bam

[ariane] 26/4/2004 20:05

Alstom SA, an engineering company that's fighting to survive, dropped 2.8 percent to 1.72 euros. France's Finance Ministry is considering three ways of refinancing Alstom, newspaper La Tribune reported, without saying where it got the information.

Alstom may be taken over by Areva SA, which makes power networks and nuclear reactors, the newspaper said, and other possibilities are converting debt into shares and raising more money from the markets. Areva slipped 2.1 percent to 228 euros.


Source: Bloomberg