Tufton Assets Share Discussion Threads

[grupo guitarlumber] 29/4/2004 16:52

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 16:05

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 05:56

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 19:01

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 18:07

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 17:08

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 09:38

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 06:11

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 12:50

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 08:54

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 08:31

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 08:27

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 07:23

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 06:18

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 19:05

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

[ariane] 26/4/2004 18:22

Alstom general counsel quits after disclosure row with CEO




Alstom general counsel Andrew Hibbert will leave the French industrial giant this July following a disagreement with chief financial officer Phillipe Jaffre over what should be disclosed in Securities and Exchange Commission filings.

The respected Hibbert has been replaced by Donna Vitter, who was previously general counsel of Alstom’s power division.

Hibbert declined to confirm or deny the reasons for his departure.
Former Elf chief executive officer Jaffre and Hibbert are understood to have clashed on the disclosure of crucial risk factors concerning the tiny cracks on gas turbines, which have been blamed for damaging the company. Hibbert’s recommendations were ultimately carried by the company’s auditors, but the seriousness of the argument has led to his departure.

Alstom has since instituted a multibillion-pound rescue plan, which is waiting for approval from the European Commission.

Hibbert will stay on with Alstom until July as adviser to the president because of his in-depth knowledge of nine class action suits that Alstom is fighting in the US.

The fallout from Hibbert’s departure could threaten Lovells’ appointment as the company’s chief adviser. Hibbert was instrumental in the appointment of the UK firm, which is worth £12m-£14m a year in fees. Other key advisers include Shearman & Sterling and Hibbert’s former firm White & Case.

Lovells partner Sharon Lewis said: “We’ve had fresh instructions since Andrew’s departure [from the role of general counsel]. We continue to have a good relationship with the new general counsel Donna Vitter.”

Alstom declined the opportunity to comment.

[ariane] 26/4/2004 11:45

PARIS (AFX) - French Finance Minister Nicolas Sarkozy will meet EU
competition commissioner Mario Monti on Monday in Brussels, to discuss several
matters, including troubled engineering company Alstom SA, the finance ministry
said.
[e-mail]
fol/sr/cml

[ariane] 26/4/2004 11:28

LONDON (AFX) - BAE Systems PLC confirmed it is currently reviewing its
options regarding its naval shipbuilding businesses.
"BAE Systems notes the recent press speculation regarding a possible sale of
its naval shipbuilding businesses and confirms that it is currently reviewing
its options regarding these businesses," said the group in a statement.
No decisions have been taken with respect to this review, which is currently
at an early stage, said BAE.
All options, including the retention or sale of some or all of these
businesses, are being considered.
"BAE Systems regularly reviews its strategic options in relation to all its
businesses, particularly in the context of delivering shareholder value," said
BAE in a statement in reaction to a report in the Sunday Times that it is
considering selling the UK's premier warship and submarines business, in a move
that could clear the way for a merger with a US defence group.
The offers have come from General Dynamics of the US and VT Group PLC, the
British shipbuilder, according to the newspaper article. VT declined to comment,
and General Dynamics could not be contacted, it said. Other competitors may also
enter bids, the report added.
acb/ak

[grupo guitarlumber] 26/4/2004 05:20

Virgin eyes up Florida's bullet trains


VIRGIN, the UK conglomerate with interests in everything from transport to retailing, has bid for the licence to run Florida’s proposed bullet train network, according to US press reports.

Virgin, which operates franchises in the UK - including the West Coast mainline - through a joint venture with Stagecoach would run the trains planned between Tampa and Orlando and eventually Miami.

Virgin would market the Florida trains, sell the tickets, drive the trains and co-ordinate with related businesses such as attractions and rental-car companies operating at train stations.

The group is reported to have signed a memorandum of agreement with Fluor-Bombardier, the company contracted to build the new bullet trains, but a final contract still must be negotiated and is subject to Fluor-Bombardier finalising its negotiations to be the project’s prime contractor.

[maywillow] 23/4/2004 05:19

Finmeccanica does the splits
By Brian Groom
Published: April 23 2004 5:00 | Last Updated: April 23 2004 5:00

Italy is showing blissful disregard for the lessons of Alstom. So much so, it is considering creating an Alstom of its own just as France is trying to resolve the crisis of its former heavy engineering champion.


Plans are well advanced to spin off the civil engineering activities of Finmeccanica, the state-controlled industrial conglomerate, and lump them with Fincantieri, the state-owned shipbuilding group. This new entity would combine shipbuilding with power generation and railway equipment: the image of Alstom.

The idea is to unshackle Finmeccanica from its troublesome civil engineering operations, allowing it to become a pure defence and aerospace player. The motives, as always in Italy, have more to do with politics.

The original proposal to split Finmeccanica came from Giuseppe Bono, former co-chief executive, who lost out in a struggle to become sole supremo. As a consolation, he was appointed chief executive of Fincantieri, replacing Pier Francesco Guarguaglini, who in turn was appointed chairman of Finmeccanica.

If allowing Finmeccanica to focus on defence and aerospace is sensible, it would have been better to seek individual solutions for the civil businesses through sales or partnerships with other international groups rather than create a new state monster.

Pity Finmeccanica's minority shareholders. Although the Treasury owns only 32 per cent, it holds a golden share and no other shareholder can own more than 2 per cent. They will have to suffer in silence.

[waldron] 19/4/2004 22:09

Alstom awarded Three Gorges contract

By Jason Ford
Alstom has been awarded a contract by the Three Gorges International Tendering Co Ltd to supply four 700 MW generating units to the project's Right Bank powerhouse on China's Yangtze River, located in Yichang city, Hubei Province.
The contract, valued in excess of 163 million Euros, comprises four turbines and their associated generators. The equipment will be manufactured in Alstom's facilities in France, Switzerland, Brazil and China, with delivery of the main components scheduled for 2006 and 2007.
As the world's largest hydropower station under construction, Three Gorges is designed to have a total installed capacity of 18,200 MW, comprising 26 X 700 MW generating units, of which fourteen will be installed in the Left Bank powerhouse and twelve in the Right Bank powerhouse.
Alstom has been involved in the Three Gorges Project since 1997, when it was awarded contracts to supply eight generating units and subsequently all fourteen governors and control systems for the Left Bank powerhouse.

[waldron] 19/4/2004 08:45

Sarkozy hints at alliance to save Alstom
By Martin Arnold in Paris
Published: April 18 2004 20:45 | Last Updated: April 18 2004 20:45


Alstom may need an "industrial alliance" to secure its long-term survival, according to Nicolas Sarkozy, the new French finance minister, raising the prospect of a merger of the engineering group with Areva, the state-owned nuclear energy company.


Mr Sarkozy put the question of whether Alstom could survive as a "stand-alone" company in his speech to staff and management of the troubled engineering group's train-building plant on the west coast of France near La Rochelle on Friday.

The maker of high-speed TGV trains, power turbines and luxury cruise ships, saved from collapse by a state-backed €3.2bn ($3.8bn) rescue package last August, is one of the main problems facing Mr Sarkozy.

He said the company still faced three big challenges: winning the approval of the European Commission for its state-backed bail-out; renegotiating the terms of the bail-out with the creditor banks; and developing industrial alliances to guarantee its long-term future.

The European Commission is due to rule by mid-May on whether to approve the bail-out. Mario Monti, EU competition commissioner, is pushing for hundreds of millions of euros of divestments.

Mr Sarkozy said he had several meetings planned with Mr Monti in the coming weeks and promised to put the case against a break-up of the company.

However, some competitors, such as Germany's Siemens, have pushed for a break-up of Alstom, which they claim is benefiting from government funds to win contracts at uncompetitive prices.

Alstom shocked investors last month when it warned it needed to renegotiate the covenants on €1.5bn of bank loans it took out only six months earlier. The company is also understood to be close to exhausting the €3.5bn of new contract guarantees it was granted as part of the bail-out, 65 per cent of which came from the state.

The company will have 45 days after publishing its annual results on May 26 to renegotiate the covenants on its debt. A person close to one of its biggest creditors said the banks were likely to be flexible over the debt renegotiations, but would put pressure on the government for something in return, most likely to be a merger with Areva.

Mr Sarkozy's predecessor, Francis Mer, resisted heavy pressure from French banks to push Areva into making a bid for all of Alstom after intensive lobbying from Anne Lauvergeon, chairman of the nuclear power group.

Mrs Lauvergeon, a former senior assistant to the late president Francois Mitterrand, is fiercely opposed to a merger with Alstom as it would almost certainly force her to abandon a planned flotation of Areva this year.

The Areva chief is understood to have won commitments not to push for a merger of the two groups from Credit Suisse First Boston and Société Générale, the banks advising Areva on its flotation, which are also among Alstom's biggest creditors

[ariane] 17/4/2004 08:23

16 Apr 2004 23:00 GMT France's Sarkozy Meets, Greets On Alstom Rescue Campaign


Copyright © 2004, Dow Jones Newswires


By Kenneth Maxwell

Of DOW JONES NEWSWIRES

LA ROCHELLE, France -(Dow Jones)- There was no baby to kiss.

Otherwise, French Finance Minister Nicolas Sarkozy's visit Friday to troubled engineering company Alstom SA's (ALS) plant in La Rochelle on the west coast had all the ingredients of a presidential visit: tense security men with earpieces, handshakes galore, and time to talk to hordes of concerned citizens.

Sarkozy, a wannabe hopeful for the next French presidential elections in 2007, belied his center-right politics with a rousing call to impressed local workers to preserve France's industrial heritage.

"This is not about a subsidy for Alstom," Sarkozy told worker after disgruntled worker in a four-hour tour of Alstom's La Rochelle site.

"It's a matter of saving the company," Sarkozy said of the debt-strapped heavy engineering outfit that has become a symbol of whether France has a future as an industrial power. "We can't allow France to become an industrial desert."

Alstom is a potent old-economy symbol for French electors. It makes high-speed trains, power station turbines and oceangoing cruise ships. But it also owes about EUR4.5 billion in debt.

As such it's the subject of a EUR3.2 billion government-backed bailout that's yet to receive the backing of E.U. officials concerned about the implications of state aid on competition within the trading bloc.

Skilled as he is in the art of pressing the flesh and convincing the wavering voter, Sarkozy knows he has his work cut out with Alstom.

He and Alstom Chief Executive Patrick Kron hope to receive the green light for a rescue plan worked out in conjunction with the government by the end of May.

With one eye on impending European Parliament elections, sluggish economic growth and high unemployment, Sarkozy says he is determined that, "France will not let Alstom go under".

"It's not just a question of the current management and financing," Sarkozy told Dow Jones Newswires during a lengthy meet-and-greet inspection of workers and their labor sites at Alstom's railcar manufacturing plant in La Rochelle.

"This is something I have to get right," he said, referring to plans to convince the E.U. to approve the Alstom refinancing package, secure the company's short-term financing and ponder strategic alliances as a way out of the company's woes.

Pressed by the trailing media gaggle to expand on whether a tieup with state-owned nuclear power engineering company Areva might represent a solution, Sarkozy and his entourage instead opted to engage with workers - in many cases members of communist-affiliated trade union CGT - to tell them he'll be accountable on Alstom's future and will return to canvas their views in future.

"It's fascinating," Sarkozy told Dow Jones Newswires as he toured the Alstom workshops. "They (the workers) have lots of things to say, and we'll be taking accounts of them."

The minister's timetable is tight.

Within two months, he said, he hopes to have worked out whether Alstom need a major industrial tieup to survive. By that stage he also hopes to have worked through all its financing queries.

Under terms of its yet-to-be-approved refinancing, Alstom plans to cut at least 7,000 jobs worldwide from the company's power and transport engineering arms. Alstom employs 47,000 in its power division, 29,000 in transport and 4,500 in its shipbuilding operations.

"If I've come here on my first public engagement as finance minister it shows how important this is for France," Sarkozy told an impromptu picket of workers at the gates of Alstom's plant here.

"It's all going to be extremely difficult," Sarkozy said. "But there's a major industrial potential here. These are jobs of the future: will we not need power stations or transport facilities in the years to come?"

-By Kenneth Maxwell, Dow Jones Newswires; 33-1-4017 1740; [e-mail]

(END) Dow Jones Newswires

04-16-04 1900ET