EU to rule on Alstom bailout in June

12th March 2004, Comments 0 comments

BRUSSELS, March 12 (AFP) - The European Commission will decide by June 21 whether a French government bailout package for embattled engineering giant Alstom complies with EU state aid rules, an EU source said Friday.

BRUSSELS, March 12 (AFP) - The European Commission will decide by June 21 whether a French government bailout package for embattled engineering giant Alstom complies with EU state aid rules, an EU source said Friday.

Alstom, whose share price plunged earlier this week after a profit warning, wants Brussels' green light for a plan giving it two billion euros (2.3 billion dollars) in short, medium and long-term assistance.

But the EU's executive arm is studying plan to see if it breaches EU state aid rules. "We've said we will take a decision in spring. The last day of spring is June 20," said a source close to the dossier.

Last year the French giant, which notably makes rolling stock for France's high-speed TGV trains and cruise liners, unveiled a restructuring plan including the sale of assets worth three billion euros.

It also called for the elimination of 7,000 jobs worldwide - including 5,000 in Europe - by 2005.

© AFP

                                                              Subject: France news

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