Signs are increasing that the French government might step in to gain more influence over loss making equipment maker Alcatel-Lucent and to protect its patent portfolio.
Bloomberg cited an unidentified government official as saying the government is…
Signs are increasing that the French government might step in to gain more influence over loss making equipment maker Alcatel-Lucent and to protect its patent portfolio.
Bloomberg cited an unidentified government official as saying the government is looking at taking a minority stake in Alcatel-Lucent, possibly via sovereign wealth fund Fonds Strategique d’Investissement (FSI). Other options considered include encouraging a merger between Alcatel-Lucent and Finland-based rival Nokia Siemens Networks or investing in the French company’s subsea cable business ASN, the report cited unidentified sources as saying. But the state may still choose not to intervene at all.
Alcatel-Lucent recently used its portfolio of 29,000 patents as a security to help it raise €2bn of credit facilities underwritten by Credit Suisse and Goldman Sachs.
Today’s report comes as Alcatel-Lucent announced the appointment of the former head of Vodafone Europe, Michel Combes, as its new CEO (see our separate story).
French newspaper Les Echos reported in December that the government was trying to coordinate a deal that would see France Telecom – in which it and FSI have a 26% stake – acquire at least part of Alcatel-Lucent Submarine Networks (ASN). According to the report, the government was also looking at FSI acquiring a stake in the asset.
In January, another French paper, L’Agefi, reported that FSI is one of several parties eyeing ASN, saying the sale could fetch €600m to €700m.
Later in the month, France Telecom CEO Stephane Richard confirmed the company had expressed interest in ASN. Richard told reporters that the company had been looking at how its own subsea cable business could work more closely with ASN for several months.
The company posted revenues of €14.45bn for 2012, down 5.7% year-on-year. The published net loss stood at €1.37bn.
