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19 September 2003 - Trading in shares in the troubled French engineering group Alstom was suspended Wednesday at the company's request, when the European Commission formally announced the opening of an in-depth enquiry into package of state aid offered to Alstom.
Alstom's board met on Wednesday to hear a report from the Chairman & Chief Executive Officer on efforts made to find solutions to ensure the Group's recovery and to seek the opinions of independent advisors.
A refinancing package agreed by Alstom, its banks and the French State was announced on 6 August 2003. This plan included the French State entering into the Company's share capital and providing a long-term loan. Europe's competition authorities have said that its decision is to prohibit in principle the French State from participating in the capital increase or from providing the long-term loan. This calls into question the fundamentals of the refinancing plan, which aimed to assure Alstom's long-term future.
The fate of Alstom appears to lie with commission chief Mario Monti, as without the state's backing, Alstom's debts threaten to overwhelm it.
The Board plans to reconvene at the latest on Monday 22 September to consider if a viable long-term solution can be found and immediately implemented.
The sale of Alstom's profitable transmission and distribution division to French state-owned nuclear group, Areva, was recently finalized.
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