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| Bouygues Acquires French State's 21% Stake in Alstom Alstom and Bouygues wish to forge a partnership aimed at seizing new opportunities by combining their strengths. In addition to this partnership, Bouygues will purchase the 21% stake owned by the French state in Alstom, subject to approval by the European Commission. Bouygues will become a shareholder of Alstom for the long term, strengthening its development. In this respect, Bouygues has undertaken to keep Alstom shares thus acquired from the French state for at least three years. As Bouygues does not plan to cross the threshold of one third of Alstom's capital or voting rights, it will not make a tender offer for the remaining shares. Shares will be acquired at a price of €68.21 per share, representing an investment of €2 billion for Bouygues. The Group has the necessary available cash to make this investment. Long-term financing will be provided without capital increase. The stake in Alstom will be consolidated by the equity method. The transaction will have a relutive effect as early as 2006. Alstom and Bouygues are exploring the possibility of creating a joint venture in the hydro power market. Alstom may contribute its entire hydro power division to the new company in which Bouygues would take a 50% stake. write your comments about the article :: © 2006 Construction News :: home page |