French cash injection to brittle Bull OK by EU

27th August 2004, Comments 0 comments

BRUSSELS, Aug 27 (AFP) - The European Commission said Friday the request by the French government to give ailing computer company Bull a capital injection of EUR 517 million (USD 625 million) has raised no "major complaints".

BRUSSELS, Aug 27 (AFP) - The European Commission said Friday the request by the French government to give ailing computer company Bull a capital injection of EUR 517 million (USD 625 million) has raised no "major complaints".

A decision on the case was expected before the end of October.

The French government plans to offer the aid to Bull to allow the company to restructure.

Bull will also be able to repay an earlier state rescue loan which was approved by the commission, the European Union's executive arm, in November 2002 and should have been repaid on June 17, 2003.

Tilman Lueder, spokesman for the commission, said: "Everything is moving in the right direction. There are no doubts or fears or major complaints about this."

The company was granted aid in 1994 to undergo restructuring. Such aid is approved according to the one-time-last-time principle, meaning the company may not receive further restructuring aid for a period of 10 years.

© AFP

Subject: French news

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