Alstom shares jump on new loan covenants

23rd June 2004, Comments 0 comments

PARIS, June 23 (AFP) - Shares in the troubled French engineering group Alstom gained sharply in afternoon trades Wednesday after the company said creditor banks had agreed to a new set of financial covenants governing its loans.

PARIS, June 23 (AFP) - Shares in the troubled French engineering group Alstom gained sharply in afternoon trades Wednesday after the company said creditor banks had agreed to a new set of financial covenants governing its loans.

Alstom shares were trading up 15.49 percent at EUR 0.82, while the CAC-40 index had risen 0.79 percent.

The stock had fallen more than 30 percent over the last three weeks.
Alstom said creditor banks had also agreed to amend credit agreements needed to implement its recovery plan, which must be approved by the European Commission.

One Paris dealer cautioned however that the bounce was largely technically driven.
"The share had fallen sharply in recent days and the graph was not a pretty sight. It was a real slaughter," the dealer said.

Uncertainty over the commission's decision and a negative reaction to Alstom's annual report pushed the share to an historic low of EUR 0.71 late Tuesday.

The troubled giant builds high-speed trains, ocean liners and power stations.

EU Competition Commissioner Mario Monti has already approved a French plan to provide Alstom with about EUR 2.285 billion (USD 2.75 billion) in various forms of state aid that would be combined with assistance from creditor banks.

It is now up to the full commission to decide if the plan is consistent with EU competition rules.

Separately, Alstom said Wednesday it has won a provisional order from the Tunis metro operator SMLT to supply 30 of its Citadis trams.

SMLT also awarded a EUR 22 million (USD 27 million) infrastructure order to a consortium grouping Alstom with a local contractor, of which Alstom will receive around 50 percent.

© AFP

Subject: French news

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