The French government reportedly might participate in the sale process for Alcatel-Lucent’s subsea cable business in an effort to help the struggling telecoms equipment supplier improve its financial position.
France’s sovereign wealth fund, Fonds…
The French government reportedly might participate in the sale process for Alcatel-Lucent’s subsea cable business in an effort to help the struggling telecoms equipment supplier improve its financial position.
France’s sovereign wealth fund, Fonds Strategique d’Investissement (FSI), is one of several parties eyeing the business, French newspaper L’Agefi reported citing unidentified sources close to the situation. According to the report, the sale could fetch €600m to €700m.
FSI and Alcatel-Lucent have declined to comment.
Late last month, France’s Les Echoes reported that the government is trying to a coordinate a deal that would see France Telecom – in which it and FSI have a 26% stake – acquire at least part of the subsea cable unit in a deal worth €100 – €150m.
The same report said the government is also looking into a deal that would see FSI acquire a stake in the cableco for an unspecified amount.
Alcatel-Lucent announced in mid-December that it had secured €1.615bn in financing underwritten by Credit Suisse and Goldman Sachs. Proceeds are to be used to improve the company’s debt maturity profile and help it achieve “performance programme” priorities, which include cutting costs and exiting or restructuring unprofitable contracts and markets.
