French government to sell 5-7 pct of France Telecom UPDATE |
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Mon, 25 Jun 2007 08:04
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(adds further detail on sale)PARIS (Thomson Financial) - The French government will sell a 5-7 pct stake in France Telecom and use the money to reduce the state debt, Economy Minister Christine Lagarde said in a statement late Sunday.'The State has today (Sunday) committed to the transfer of 5 pct of the capital of France Telecom,' the minister said, adding that that figure could rise to 7 pct of the capital according to the 'demand expressed'.An initial total of 130 mln shares will be sold via an accelerated book-building offer for institutional investors, with the option of raising this figure to 180 mln shares.The transaction will reduce the government's stake in the telecoms operator from its current 32.41 pct to between 25.5 pct and 27.4 pct.Lagarde also indicated in the statement that 'a specific offer will subsequently be proposed by the State to employees and former employees of the company,' in accordance with legal provisions in force.However, Lagarde stressed that the government 'intends to remain a significant shareholder in France Telecom over the medium term'.On the basis of Friday's closing price of close to 21 eur per share, the sale of the initial 5 pct capital stake would bring in some 2.7 bln eur, and the sale of a 7 pct stake would raise 3.78 bln eur.'The profit from the transfer of these stocks and shares will be fully allocated to reducing the debt of the State and public services' as stipulated by law, Lagarde added.tfn.paris@thomson.comafp/mjs/vs/vb/jlcCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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