Tufton Oceanic Assets Share Discussion Threads

[ariane] 25/7/2004 17:40

LONDON (AFX) - US private equity firm The Carlyle Group is reportedly
mulling an offer to buy the shipbuilding business of BAE Systems PLC, Britain's
largest defence company, The Sunday Telegraph reported without citing sources.
The paper said Carlyle, which specialises in buying defence businesses, will
face competition from DML, the company that runs the Devonport Royal Dockyard.
DML confirmed to the paper it was interested in bidding for the unit which
could be worth up to 400 mln stg.
DML is 51 pct-owned by US oil services firm Halliburton Co. Its other
shareholders include UK engineering firm Weir Group PLC and engineering and
construction group Balfour Beatty PLC.
Other firms thought to be interested include US group General Dynamics Corp,
Southampton, UK shipbuilder VT Group PLC, and French group Thales SA.
But there is uncertainty over the fate of BAE's nuclear submarine yard at
Barrow-in-Furness, Lancashire.
Though BAE would like to include the yard in any deal, the UK's Ministry of
Defence is believed to be insisting it should not fall into foreign hands, owing
to national security interests.
[e-mail]
rhb/jsa

[maywillow] 19/7/2004 14:52

LONDON (AFX) - The government is extending the risk assessment phase of the
3 bln stg future aircraft carrier project which involves BAE Systems PLC and
Thales SA, said Defence Secretary Geoff Hoon.
In a written ministerial statement, Hoon said the extension would push back
the date at which the government makes its final decision on whether to invest
in the project.
He said more risk reduction work would be done "prior to making our main
investment investment decision on demonstration and manufacture".
However, the in-service date for the two ships still remains 2012 and 2015,
Hoon said.
There were suggestions in May that BAE might pull out of the deal after a
row with the Ministry of Defence over who would be the lead contractor.
BAE and Thales are meant to be working in an alliance to build the two
vessels and Hoon said a deal had been struck tying the partners and the MoD "to
an alliance based on best commercial practice".
"We will now discuss and agree the detailed alliancing arrangements with
industry including the roles and responsibilities of alliance members," he said.
fp/bam

[energyi] 19/7/2004 10:34

Unsolicited offer for 100% of Stelmar shares received by Stelios Haji-Ioannou
posted: July 19, 2004

Stelios writes:

"On Friday 16 July, I received a copy of the following unsolicited letter, which I think should enter the public domain.

At this stage, it is the Board's responsibility to maximize shareholder value by reviewing seriously any and all offers being made for Stelmar. I hope the board will
stop procrastinating and publicly announce the results of the auction that I hope is being conducted.

Whilst any serious offer for 100% of the shares of any public company, particularly if it is in cash, should be considered, I am not inclined to accept any offer for Stelmar unless it comes at a significant premium to the current share price of $33-$34. In any event my preference is not to exit the industry completely but to exchange my shares for another shipping company's publicly traded shares. For the record, the value of OMI's recently terminated offer for Stelmar (3.1 OMI shares) at last night's closing price would have been worth well in excess of $40 per Stelmar share. I have no faith in the current Stelmar management any longer and I think the outside directors should, at the very
least, be looking to replace them ASAP, just like Marks and Spencer PLC did with their Chairman and CEO as soon as an offer was received for their company."


--------------------------------------------------------------------------------
GOLDEN ENERGY MANAGEMENT S.A.
Mr. Nicholas Hartley
Chairman of the Board of Directors
Stelmar Shipping Ltd.
76 Watling Street
London EC4M 9BJ
United Kingdom

Athens, 15th July 2004.



Dear Mr. Hartley,

Subject: Proposal to acquire up to 100% shares of Stelmar ("the Company")

You are probably aware that the Company has over the past year expressed interest in
acquiring Golden Energy's fleet of product tankers.

We have noted your board's interest in developing strategic alliances and/or pursing
mergers and, in view of your imminent board meeting next week, we have taken the
liberty to write to you with a proposal which Golden Energy invites you to put before
the Company's board for turtber deliberation.

After careful consideration with our financial advisors, Golden Energy wishes to
register its interest in acquiring the Company in full on the basis that the board of the
Company accepts in principal and entertains favorably Golden Energy's wish to take
over control of the Company, subject of course to standard due diligence amongst
other things.

We would welcome the opportunity to enter into more formal discussions regarding
the terms of our proposal should your board wish to investigate this matter further.
We trust that you and the board will give serious consideration to our proposal, and
we look forward to hearing from you.

Sincerely yours,

Victor Restis

For and on behalf of
Golden Energy Management S.A.

[ariane] 14/7/2004 18:08

(Updating with full report)

PARIS (AFX) - Share prices closed in negative territory but off intraday
lows, recovering some ground from recent sharp losses and as Wall Street clawed
back from an early steep fall, but with little news to drive the market given
today's Bastille Day holiday, dealers said.
The CAC-40 index finished 7.43 points lower at 3648.75, in volume of 2.3 bln
eur.
Among CAC-40 stocks, 14 closed higher, 22 closed lower and 3 were flat. On
the Matif, July CAC-40 futures were trading 8 points lower at 3653.00.
"Investors have been testing the bottoms on some stocks," said a Paris-based
dealer, adding that "for an 'off' day we've been quite active".
"There's quite a bit of market malaise today, it's all rather dull," said
another Paris-based dealer, noting that US retail sales for June were
disappointing.
Among the biggest gainers, Alcatel finished 0.25 eur or 2.2 pct higher at
11.81 after networking company Juniper Networks beat second quarter earnings
estimates and issued a bullish outlook for the rest of the year.
"Alcatel has been propelled upwards by Juniper's results, which came in
higher-than-expected -- one of the few CAC-40 stocks on the upside," said a
Paris-based dealer.
Also among the gainers, Accor ended the day 0.60 higher or up 1.8 pct at
34.66, after Morgan Stanley upgraded its share price target to 42 eur from 39
and raised its earnings per share forecasts for 2004, 2005 and 2006.
Defensive stocks were also in demand, with Air Liquide finishing up 0.8 at
135.00.
Among the day's decliners, STMicro ended 0.30 weaker or down 1.8 pct at
16.63, hit by negative sector sentiment after Intel cut its full-year gross
margin targets after announcing lower-than-expected second quarter sales,
dealers said.
Vivendi was 0.40 lower or down 1.8 pct at 21.79 and France Telecom was off
0.02 at 20.45 on reports they received a lower than hoped-for bid for their
joint cable TV operations.
Citing a newswire report, a Paris-based dealer said a group of investment
funds including Apax Partners, Soros Private Equity and Cinven Group Ltd made an
offer of 600 mln eur for the assets.
This is "400 mln eur less than people were valuing them at," he said.
On the broader indices, the SBF-80 index closed down 15.59 at 3394.38 and
the SBF-120 was 7.15 lower at 2575.16.
The euro stood at 1.2375/79 compared with 1.2313 usd at market close
yesterday.
[e-mail]
sr/wf

[ariane] 14/7/2004 07:17

LONDON (AFX) - BAE Systems PLC is bracing itself for cuts in key contracts
for the RAF and Royal Navy as a result of this week's spending settlement
between the Treasury and Ministry of Defence, The Guardian reported.
The paper said that UK defence secretary Geoff Hoon is expected to announce
cuts in programmes for Type 45 destroyers, Nimrod reconnaissance aircraft,
Astute submarines and Eurofighter Typhoon jets in a week.
[e-mail]
el/slm/

[mcbeanburger] 12/7/2004 08:49

Rates are climbing again. nice charts above (7).

[grupo] 09/7/2004 21:25

(Updating with details of resolutions passed)
PARIS (AFX) - Alstom shareholders at today's annual general meeting have
approved the planned capital increase of up to 2.2 bln eur, which forms part of
the rescue plan for the group.
The capital hike was approved with over 90 pct of the votes, the company
said.
The 25 pct quorum for the AGM was breached, with 33.17 pct of shareholders
present, but only after the resolutions were amended to allow the state to vote,
it said.
The French government holds some 18.5 pct in the engineering group and would
have been unable to cast those votes on the resolution pertaining to the 500 mln
eur capital increase by debt-to-equity swap reserved for the state.
That resolution was dropped to enable the financial restructuring plan to go
ahead without a hitch.
Instead, that 500 mln eur was included in the first resolution adopted which
allows a capital increase with preferential subscription rights for up to a
maximum of 1.7 bln eur. That figure was previously 1.2 bln.
A second resolution was also adopted for a capital increase by
debt-to-equity swap for up to 700 mln eur, for creditors other than the state.
The objective remains a maximum total of 2.2 bln eur altogether from the two
operations, the company said.
[e-mail]
rc/jad/jsa

[grupo] 09/7/2004 15:06

PARIS (AFX) - Alstom CEO Patrick Kron said the partnerships the company must
enter into, under EU conditions for approving the state-sponsored rescue plan
for the group, do not demand any loss of control for the company.
"There is no imposition of any loss of control in any of the activities
concerned," Kron said.
[e-mail]
dec/jad/hjp

[waldron] 09/7/2004 08:19

(Updating with terms of financing plan if amended)

PARIS (AFX) - Alstom SA said ahead of its AGM today it is "highly probable"
the quorum required for its 500 mln eur capital increase by debt-to-equity swap
reserved for the French state will not be reached.
If this is the case, the French engineering company will propose to amend
the structure of the financing plan.
It said however any changes will not affect the maximum amount of the total
capital increase of 2.2 bln eur.
Alstom said the "widespread shareholding structure and a large proportion of
non-French shareholders" is the reason quorum may not be reached.
The other two resolutions to be voted on at the AGM are firstly a capital
increase in cash with preferential rights up to a maximum of 1.2 bln, and
secondly a capital increase by debt-to-equity swap reserved for creditors other
than the French state to a maximum of 700 mln eur.
Along with the 500 mln eur capital increase reserved for the French state,
this takes the total amount of these three capital increases to 2.2 bln eur,
Alstom said.
If Alstom does, as it expects, amend the structure of the financing plan,
the maximum amount of the capital increase with preferential rights would be
increased to 1.7 bln eur from 1.2 bln.
This transaction could be subscribed in cash or by conversion of debt due
and payable, including the 500 mln eur of debt from the French state, it said.
At the same time, the maximum amount of the debt-to-equity swap reserved for
creditors other than the French state would remain at 700 mln eur and could be
reduced, in order to maintain the total target of 2.2 bln eur, Alstom said.
An Alstom conference call started at 8.30 am Paris time today.
[e-mail]
sr/wf

[ariane] 07/7/2004 17:19

FRANKFURT (AFX) - Siemens AG will thoroughly review the rescue plan for
rival Alstom SA which the EU Commission approved, a company spokesman said.
He declined to comment on what action Siemens might take after reviewing the
decision.
Alstom said the deal agreed with the the European Commission concerning its
rescue plan permits the French government to acquire a maximum temporary stake
in the company of up to 31.5 pct in exchange for earlier loans and future
financial support.
Siemens has previously said it can not rule out taking legal action against
Alstom over the government subsidies. The two companies compete in a number of
areas, including high speed trains and gas turbine power generation.
[e-mail]
ax/DP/ne/amk/cml

[maywillow] 07/7/2004 14:28

PARIS (AFX) - Alstom said the deal agreed with the the European Commission
concerning its rescue plan permits the French government to acquire a maximum
temporary stake in the company of up to 31.5 pct.
To date, the government has confirmed plans to convert a 20-year 300 mln eur
loan granted in the form of bonds last summer into a stake of around 18.5 pct.
Further plans for the state to contribute 185 mln to a capital increase and
convert a further 500 mln eur in subordinated debt would raise the government's
shareholding to a total of 31.5 pct.
An Alstom spokesman said: "The government has indicated it wishes to do this
and the plan will be put to the vote by shareholders on Friday."
Under the agreement with the Commission announced today, the government can
keep its stake for no more than four years and must sell the stake within 12
months of Alstom obtaining an investment-grade credit rating from a rating
agency.
Alstom said that after the agreement on new financial covenants agreed with
its creditor banks in late June, the debt-for-equity deal with the government
marks the second of three steps needed to make its finance plan a success; the
third being approval by shareholders at Friday's AGM.
[e-mail]
mrg/jsa

[maywillow] 07/7/2004 13:08

(Updating with further details from conference call)

PARIS (AFX) - Alstom CEO Patrick Kron said sales in the current year may be
lower than a year earlier, with a second half improvement not guaranteed to
offset weakness in the first six months.
The company earlier reported a 6 pct organic fall in first quarter sales to
3.312 bln eur.
Speaking in a conference call with analysts, Kron said: "We were expecting a
short level of sales in first part of year. We hope we will catch it up in
second half... (but) whether we are going to offset the first part of the year
during the second half remains to be seen."
Sales in 2003 fell to 16.688 bln eur from 21.351 bln the previous year.
Kron also said the company would not be raising, or detailing its guidance
for an order intake this year that is higher than in 2003, despite a 41 pct jump
in orders during the first three months.
"Obviously, up 40 pct is strong confirmation that we are on track for (the
target). I'm encouraged by this level, but I don't judge the group on three
months' performance," he said.
Kron did not comment on any issues related to the European Commission's
expected decision today on the rescue plan and financial restructuring package
for the group.
Regarding the target for an operating margin of 6 pct by 2006, Kron said
growing price pressure in markets such as gas turbines is not putting it under
threat, as it is based largely on cost-cutting expectations.
Kron noted that the strong level of order intake for the first quarter came
without booking a large order from RENFE, as new management at the Spanish state
railway reviews commitments made under the previous incumbents.
RENFE has delayed the signing of 2.3 bln eur worth of high-speed train
orders awarded to Alstom, Bombardier Inc and Siemens AG among others, according
to reports.
Kron said Alstom is "very confident" the orders will be honoured, "but we
only book orders when we are 100 pct sure."
The CEO was also asked about progress on two contracts in the group's Marine
division from Swiss cruise group MSC and from Gaz de France.
He said that neither deal is delayed, and that discussions to convert the
letters of intent into firm orders are continuing.
"Now in each case the customer is establishing the adequate financing
structure to buy the ships. It's a normal process... and may take some more
weeks to be finalised. That is what we are expecting," he said.
[e-mail]
jad/wf

[maywillow] 07/7/2004 13:06

(Updating with further details from conference call)

PARIS (AFX) - Alstom CEO Patrick Kron said sales in the current year may be
lower than a year earlier, with a second half improvement not guaranteed to
offset weakness in the first six months.
The company earlier reported a 6 pct organic fall in first quarter sales to
3.312 bln eur.
Speaking in a conference call with analysts, Kron said: "We were expecting a
short level of sales in first part of year. We hope we will catch it up in
second half... (but) whether we are going to offset the first part of the year
during the second half remains to be seen."
Sales in 2003 fell to 16.688 bln eur from 21.351 bln the previous year.
Kron also said the company would not be raising, or detailing its guidance
for an order intake this year that is higher than in 2003, despite a 41 pct jump
in orders during the first three months.
"Obviously, up 40 pct is strong confirmation that we are on track for (the
target). I'm encouraged by this level, but I don't judge the group on three
months' performance," he said.
Kron did not comment on any issues related to the European Commission's
expected decision today on the rescue plan and financial restructuring package
for the group.
Regarding the target for an operating margin of 6 pct by 2006, Kron said
growing price pressure in markets such as gas turbines is not putting it under
threat, as it is based largely on cost-cutting expectations.
Kron noted that the strong level of order intake for the first quarter came
without booking a large order from RENFE, as new management at the Spanish state
railway reviews commitments made under the previous incumbents.
RENFE has delayed the signing of 2.3 bln eur worth of high-speed train
orders awarded to Alstom, Bombardier Inc and Siemens AG among others, according
to reports.
Kron said Alstom is "very confident" the orders will be honoured, "but we
only book orders when we are 100 pct sure."
The CEO was also asked about progress on two contracts in the group's Marine
division from Swiss cruise group MSC and from Gaz de France.
He said that neither deal is delayed, and that discussions to convert the
letters of intent into firm orders are continuing.
"Now in each case the customer is establishing the adequate financing
structure to buy the ships. It's a normal process... and may take some more
weeks to be finalised. That is what we are expecting," he said.
[e-mail]
jad/wf

[maywillow] 07/7/2004 08:27

(Updates with further details on outlook, quote from chairman)

PARIS (AFX) - Alstom SA said it remains confident of achieving a turnaround
in its operations as orders in the first quarter of its 2004-2005 fiscal year
jumped 41 pct to 3.941 bln eur on a comparable basis.
"The orders of the first quarter of fiscal year 2005 confirm the positive
trend we reported in the second semester of last fiscal year. This provides us
good confidence to achieve our turnaround," chairman and chief executive officer
Patrick Kron said in statement accompanying first-quarter results.
Alstom said first quarter orders in its 2004-2005 fiscal year rose 41 pct on
a comparable basis, but were down 2 pct on a reported basis from a year earlier.
Sales reached 3.312 bln eur in the quarter, down 6 pct on a comparable basis
from year earlier, and down 24 pct on a reported basis from a year earlier.
On a reported basis, orders and sales were negatively impacted by negative
currency effects, and by the disposals of the company's Industrial Turbines and
Transmission & Distribution activities, Alstom said.
[e-mail]
lwl/wf

[grupo guitarlumber] 05/7/2004 17:16

BRUSSELS (AFX) - The European Commission will announce on Wednesday that
beleaguered French engineering group Alstom must form partnerships in
"significant parts of key activities" in return for EU approval of the plan to
bail out the company, said sources close to the case.
This move, while guaranteeing the future of the company, amounts to
something of a pyrrhic victory for Alstom which will have to relinquish a degree
of control in its main areas of operation, transport and energy, said the
sources.
The sources were citing the draft decision of the commission which will also
announce that the French government is pull out completely as a shareholder by
end-2008.
Concerning the partnerships, the decision will provide no further
illumination about what the commission has in mind. Sources said the decision
will merely describe partnerships as a scenario where the business undergoes a
"structural, long-term change involving some loss of control."
"The partnerships will not be defined any further. It is up to the French to
decide. What the commission will say however is that they must not be for ad hoc
projects and they must be long-term and concern a significant part of (Alstom's)
activities in key areas," said a source.
Competition Commissioner Mario Monti said in May that an example of an
industrial partnership would be a 50:50 joint venture for the hydro power
business which has already been agreed as a short-term measure to be taken
within a year.
The other partnerships do not need to be quite so drastic even if they do
affect all the key parts of the company's business, said the sources.
Nonetheless, one source said: "This might be a pyrrhic victory for Alstom
even though it looks like everybody got something."
The French government offered to give up its stake in Alstom to make the
point that its bailout of the company is not "effectively a re-nationalisation",
said one of the sources.
Wednesday's decision puts an end to a probe first opened in September.
[e-mail]
ed/pav/

[maywillow] 18/6/2004 09:51

(updates with comment that German building technologies unit is expected to
be sold by the end of the year)

ZURICH (AFX) - ABB Ltd chairman and CEO Juergen Dormann said he will not
make any large acquisitions in the next two years while the company consolidates
its turnaround programme, but once this process is complete he may look at
acquisitions, including acquiring parts of France's Alstom SA.
Speaking in an interview with Germany's Handelsblatt, Dormann said that for
now the Swiss engineering group wants to focus on putting together four
consecutive quarterly profits, improving its credit rating and paying a dividend
to shareholders.
"There will be no large acquisitions for the next two years," he said.
Once this process is complete, however, he will begin to look at
acquisitions, including parts of Alstom that could fit into ABB's two core
businesses, Power Technology and Automation Technology, the paper cites Dormann
as saying.
This could include Alstom's turbine operations, he added.
The European Commission recently approved a state-led rescue package for
Alstom, one of the conditions of which is the sale of operations equal to about
10 pct of revenues in the short term.
Dormann is stepping down as CEO at the end of the year to focus on his role
as board chairman.
He told the paper that he will will continue to play an active role in
strategic decisions even after Fred Kindle takes over as CEO, particularly when
it comes to acquisitions.
He also said that the company's ongoing divestment programme will continue
as it seeks to focus just on Power Technology and Automation Technology.
To this end, Dormann expects to sell ABB's German building technologies unit
by the end of the year, he said.
scs/jfr

[grupo guitarlumber] 09/6/2004 21:11

(Adding details, background)
ABOARD THE CHARLES DE GAULLE (AFX) - France and Britain said they have
agreed to work toward cooperation on the construction of their future aircraft
carriers.
French Defense Minister Michele Alliot-Marie and her British counterpart
Geoff Hoon, meeting aboard a French nuclear-powered carrier off the English city
of Portsmouth, said the two sides had set a June 2005 target for reaching an
industrial accord.
The two sides agreed an interim deadline of September for an initial joint
evaluation of the prospects of such an industrial pact.
The meeting was aimed at furthering discussions about whether and how to
align their countries' efforts to expand their naval fleets.
Both nations have announced the construction of conventionally powered
aircraft carriers, meant to be operational by 2015. France said in February it
was planning to build one, while Britain intends to build two.
Initial discussions are already under way between the major military firms
in both countries which are likely contractors for the multi-billion, multi-year
projects, including France's electronics defense firm Thales and warship builder
DCN.
[e-mail]
es/cs/mkh/vs/hjp

[grupo guitarlumber] 09/6/2004 19:17

ABOARD THE CHARLES DE GAULLE (AFX) - France and Britain said they have
agreed to work toward cooperation on the construction of their future aircraft
carriers.
"The objective of the procurement strand is to reach by June 2005 an agreed
understanding between industry and both ministries of defense on the prospects
for industrial cooperation between the two programs (on aircraft carrier
construction)," said the joint declaration, signed by French Defense Minister
Michele Alliot-Marie and her British counterpart Geoff Hoon.
[e-mail]
es/cs/mkh/vs/hjp

[waldron] 04/6/2004 14:55

PARIS (AFX) - Thales SA said it has formed a joint venture with state-owned
shipyard DCN in order to jointly lead the future French aircraft carrier
programme (PA2).
The venture will be held 65 pct by DCN and 35 pct by Thales, with equal
representation on the four member board, it said.
The main purpose of the venture, and the prime contract office incorporated
within it, is to lead the PA2 programme from conception to completion.
However, "it will also be able to assist the studies for potential
cooperation with the United Kingdom's future aircraft carrier programme, should
this be desired by both governments," it said.
[e-mail]
jad/cml

[grupo guitarlumber] 26/5/2004 11:26

Alstom to Sell Shares, Convert Debt in Financing Plan (Update7)
May 26 (Bloomberg) -- Alstom SA, the French builder of power stations that generate a fifth of the world's electricity, plans to increase equity by as much as 2.5 billion euros ($3 billion) in a bailout that will make the government the biggest shareholder.

The government will convert 300 million euros of bonds into stock, and Alstom will sell as much as 1.2 billion euros in shares and ask the state and banks to swap debt into as much as 1.2 billion euros more of shares. The European Union is expected to approve the rescue today, Chief Executive Patrick Kron said on a conference call.

The EU originally opposed the government-led bailout on competition grounds. At stake are 20,000 jobs in France with the company that also built subway trains used in London, New York and Singapore and the Queen Mary 2, the world's largest cruise liner.

``It's a stitch-up,'' said Andrew Bell, an equity strategist at Carr Sheppards Crosthwaite in London, which oversees $9 billion. ``I don't think it's government's duty to preserve jobs but to set the economic conditions in which companies can thrive.''

Shares in Alstom were unchanged at 1.18 euros at 10:44 a.m. in Paris, for a market value of 1.24 billion euros. That's about 5 percent of the stock's value when it began trading in June 1998.

Kron, 49, said that talks between France and the EU continued until this morning and he expects agreement in principle today. The state will hold between 18.5 percent and 31.5 percent of Alstom, he said. Formal EU approval will come in June.

EU Competition Commissioner Mario Monti said he will hold a media briefing on Alstom at midday in Brussels.

Contract Guarantees

Alstom is also putting in place access to 8 billion euros in contract guarantees over the next 2 years.

By intervening to save Alstom, French Finance Minister Nicolas Sarkozy is following a tradition of French governments stepping in to defend large companies. Taxpayers' money has been used to save Credit Lyonnais SA, armaments maker Giat Industries, the computer maker Group Bull SA and Air France SA.

British Midland, KLM Royal Dutch Airlines, British Airways and the Danish Transport Ministry all protested the European Commission's decision in 1994 to allow the French government to give Air France about $3.5 Billion in aid.

The European Commission has said Alstom must find ``industrial partners'' within four years. Kron told journalists in Paris these may include joint ventures. He ruled out closer ties with Siemens AG, Germany's largest engineering company.

Siemens spokesman Thomas Weber declined comment, reiterating the company will review the final package once it is approved.

Alstom also said today its net loss in the year to March 31 widened to 1.84 billion euros from 1.43 billion euros a year earlier. Sales dropped to 16.69 billion euros from 21.35 billion euros and debt fell to 3 billion euros from 4.9 billion euros.

`On Life Support'

``Alstom is on life support and it would have died a year ago if it wasn't being kept politically alive,'' said Daniel Broby, who manages $8.5 billion at Bankinvest and doesn't own the stock. ``The loss shouldn't be widening at this stage in the economic cycle. It has nothing to with normal business logic.''

Alstom expects demand for new power equipment to remain ``generally low'' over the next months and said the transport and power-service markets should remain ``generally sound.''

The company reiterated its target to reach an operating profit margin of 6 percent in fiscal 2006.

Under the terms negotiated with the EU, Alstom would sell additional units with 1.5 billion euros in sales and said about half of those have been identified.

Kron has expanded disposals to raise funds, selling Alstom's small and medium-sized turbines to Siemens for 1.1 billion euros and its power-networks unit to Areva SA for 920 million euros.

Under pledges made when he became chief executive in March 2003, Kron is trimming sales to 15 billion euros from 24.5 billion euros three years ago.

Alstom's finances suffered as a design fault on heavy-duty power turbines drained more than 4 billion euros in cash since 1999. The company and rivals such as General Electric Co., Siemens and ABB Ltd. also faced declining demand in the $135 billion power market.



To contact the reporter on this story:
Nicolas Johnson in Paris [e-mail]

To contact the editor responsible for this story:
Richard Vines at [e-mail]

Last Updated: May 26, 2004 04:46 EDT

[grupo guitarlumber] 26/5/2004 10:55

(Updates with source close to talks saying deal is done)

BRUSSELS (AFX) - EU competition commissioner Mario Monti will hold a news
conference on the French government's bailout of Alstom at midday, his office
said, with a source close to the talks saying the deal is done.
The source said the last adjustments to an agreement between the commission
and the French government are under way, "but the deal is done".
Yesterday, the French government bowed to commission demands that it find an
industrial partner for Alstom within four years.
vm/lam

[grupo guitarlumber] 26/5/2004 10:52

PARIS (AFX) - Alstom SA chief executive Patrick Kron said he will not accept
any break-up of the company, even though he must search out industrial alliances
in order to gain EU Commission approval of the group's rescue deal.
"Alstom is a coherent industrial group that will recover and develop," Kron
said at a press conference. "Alstom is not a financial holding company."
As a result, there is no reason for Alstom to be a minority partner in any
of the industrial partnerships it will form over the next 4 years, he said.
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