Sarkozy vows Alstom to stayone unit, no French closures

18th May 2004, Comments 0 comments

PARIS, May 18 (AFP) - French Finance Minister Nicolas Sarkozy told lawmakers Tuesday there would be "no breakup of Alstom and no site closings in France" following talks with EU Competition Commissioner Mario Monti.

PARIS, May 18 (AFP) - French Finance Minister Nicolas Sarkozy told lawmakers Tuesday there would be "no breakup of Alstom and no site closings in France" following talks with EU Competition Commissioner Mario Monti.

Meanwhile in Berlin a German economy ministry spokeswoman said that German Chancellor Gerhard Schroeder and French Prime Minister Jean-Pierre Raffarin would meet soon with the heads of Alstom and its German rival Siemens to discuss the future of European engineering industry.

And EU and French officials were locked in detailed talks on a redrafted rescue for engineering giant Alstom believed to be based on conversion of state debt into shares and some divestments.

The plan, worked out in principle in high-level talks between Sarkozy and Monti on Monday, appeared to be based on ensuring that the French state's holding is kept below a blocking minority by means of also converting bank debt into shares and issuing new stock on the market.

France has also been anxious to prevent the group from being broken up.


© AFP

Subject: French news

 

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