Alcatel and Marconi are planning to sell at least part of their joint 48 per cent holdings in Alstom (each has 24 per cent), and may raise more cash if they pass on their control of the company. Shares will be offered during the first quarter of this year, on European and US markets; timing will depend on market conditions. Alstom’s shares are currently selling at around 25 euros, from a flotation position in 1998 of 31 euros, and dropped 2 euros (later recovering) when news of the impending sale was made public. Nonetheless Alstom’s current trading position looks healthy – interim figures released on the same day as the sale announcement show a record order backlog, now standing at over 39 billion euros, and a healthy sales position. Current share prices would put the company’s stock market value at around $5.3 billion, valuing the Marconi/Alcatel holding at around $2.6 billion. Marconi plans to use the proceeds of the sale to finance acquisitons in the opto-electronic equipment market. Alcatel too has been regrouping; it has recently reduced its shareholding in nuclear group Framatone.
